Why Health and Safety Prequalification Is Gaining Ground in New Zealand’s Trades Sector

In the hustle of New Zealand’s construction and trades industry, few things grind the gears of a good contractor more than paperwork. Between managing clients, deadlines, and crews, being asked to jump through yet another hoop – health and safety prequalification – can  seem like overkill. But with more clients making it a non-negotiable, it’s time to ask: Is prequal really necessary, or is it just bureaucracy in  high-vis?

The answer isn’t black and white – but for many in the industry, it’s becoming increasingly clear that prequalification is less about red tape,
and more about long-term resilience, compliance, and credibility.

What is Prequalification?

Health and safety prequalification (or “prequal”) is a formal assessment process designed to show that a business meets its health and  safety obligations under the Health and Safety at Work Act 2015 (HSWA). Prequal helps contractors demonstrate that they’ve got the  systems in place to protect their workers, clients, and the public.

Several schemes now operate in Aotearoa, including:

  • Totika – the national prequalification standard endorsed by CHASNZ and supported by government agencies
  • SiteWise – widely used across infrastructure, local council, and civil sectors
  • SHE PreQual – popular in the commercial and construction trades, and preferred by local councils

For tradies, builders, and subcontractors, these schemes are becoming gatekeepers to larger contracts and government-funded work.

Why Prequal Matters

Let’s be honest – no one wants another admin burden. But prequal offers some powerful advantages, especially for businesses looking to  grow.

  1. It Opens Doors: More clients – especially Tier 1 contractors and government entities – now require proof of prequalification before  awarding work. Without it, even the best operators can be left out in the cold.
  2. It Shows You’re Serious: Prequal doesn’t just show you’re compliant – it shows you’re committed. It’s a signal to clients and workers  that safety isn’t just lip service on-site.
  3. It Forces You to Get Organised: From risk assessments and training registers to incident reporting and worker engagement, the  prequal process helps you tidy up behind the scenes and build stronger internal systems.
  4. It Puts You Ahead of the Pack: In a competitive market, prequalification can give your business an edge. Clients want to work with  contractors who reduce their risk – not increase it.

When Prequal Might Not Be Necessary

Not every business needs full-blown prequalification. For smaller operators or those working in low-risk environments, a fit-for-purpose Health and Safety Management System (HSMS) may be enough. If you’re a one-person band doing property maintenance or working on  residential projects, you may not need a formal prequal right now – but having a documented HSMS still makes good business sense.

That said, many small businesses find that once they’ve got the basics in place, prequal is just the next step in lifting their professional  profile.

Getting Started Without the Headache

Prequal can feel overwhelming at first – but it doesn’t have to be. Many consultants now offer tailored packages to help small businesses  get up to speed.

That might include:

  • Developing a customised HSMS
  • Running gap analyses against Totika or SiteWise requirements
  • Creating document templates (e.g. inductions, hazard registers, SOPs)
  • Supporting you through the prequalification application process

In other words, you don’t need to do it alone.

Final Word

Whether you’re swinging hammers or steering diggers, one thing’s for sure: health and safety is no longer optional – it’s part of doing good
business in Aotearoa. Prequalification isn’t about ticking boxes; it’s about showing your clients, your team, and yourself that you’re building  more than structures – you’re building a safe, sustainable business.

So, prequal or not?

If you’re serious about growth, ready to stand out, and keen to prove your professionalism, the answer might just be “yes.”

Courtesy of Sphere Consulting: Empowering small businesses with tailored strategies and actionable insights.