Principal Risk Consultant
Paul is a Principal Risk Consultant at LGIS. He has extensive experience in advising public sector leaders and corporate executives on a suite of professional risks, including legal and liability risk, contract and procurement risk, fraud risk, climate change risk, reputational risk and stakeholder relations, governance, integrity and probity practices, directors’ duties and executive decision-making, and policy and strategy development.
Both MOUs and formal contracts are common instruments within the local government sector in Western Australia. However, it is important that members are familiar with significant and often subtle differences between MOUs and contracts as the risks associated with getting it wrong can be costly.
MOUs outline intentions, roles and responsibilities, and overall goals and objectives. The MOU serves as a guide to mutual aspirations and provides a collective recognition of the potential outcomes and processes desired by the parties. They provide a clear indication that the parties are committed to working together in good faith, often as a precursor to a binding agreement.
However, the distinguishing feature is the lack of legal obligations. Meaning, there is no liability, for either party, resulting from non-compliance.
Contracts are different to MOUs in that they:
When local governments draft or respond to an MOU, they should be careful not to include deliverables or specific risk transfer mechanisms (such as indemnity clauses, limits of liability clauses, or insurance obligations terms). There is no opportunity to seek redress where a party fails to honour an MOU and similarly, there is no risk where members fail to comply.
LGIS continued with our new workers’ compensation act roadshow, this time educating the northern metro members on the significant legislative changes. Together with WorkCover WA and legal partners Moray & Agnew, we delivered another tailored information session on the new Workers Compensation and Injury Management Act (2023) WA.
Reporting incidents to WorkSafe, and WorkSafe notices – what are they and what should you do if you receive one? One of WorkSafe’s primary objectives is ensuring compliance with the Work Health and Safety Act 2020 (WA) (WHS Act) by carrying out investigations and, where appropriate, taking enforcement action.
Both MOUs and formal contracts are common instruments within the local government sector in Western Australia. However, it is important that members are familiar with significant and often subtle differences between MOUs and contracts as the risks associated with getting it wrong can be costly.
The purpose of an MOU is to clarify the functional aspects and objectives in a collaboration. MOUs are particularly beneficial in the early stages, outlining intentions and shaping the relationship, which can later evolve into a legally binding commitment.
Primary functions of MOUs include:
While MOUs can be suitable in specific situations, contracts are generally favoured in the local government sector due to their binding nature and definitive terms. Contracts provide clear-cut and upfront agreement on details and include formal aspects,
the allocation of risks, as well as respective obligations. The preference toward contracts ensures well-defined goals, objectives, obligations, and alignment between parties for their collaboration.
For advice on MOU’s and contracts, it is best to seek the input of a suitably qualified person.
For more information on liability and contract risks talk to the LGIS Risk Team.
MOUs, DFES and volunteer bushfire fighters
For members who have an MOU with the Department of Fire and Emergency Services, please refer to the guidelines available on the LGIS website with regard to this specific relationship and managing volunteer bushfire fighters.
Welcome to the Winter edition of 2024! As we wrap up the financial year, we’d like to take this opportunity to thank you for your continued support. We’re pleased to share that we’ve had a complete renewal with an outstanding 100% retention of our membership.
1 July 2024 marked the adoption of the new Workers’ Compensation and Injury Management Act (WA) 2023, bringing with it an emphasis on workers and getting them back to work.
Over the past few months LGIS has adopted the triaging approach to injury management and it’s already paying dividends – delivering improved outcomes for the injured worker and saving money for the Scheme and members.
LGIS is the unifying name for the dedicated suite of risk financing and management services for WA local governments, established by the WA Local Government Association in conjunction with JLT Public Sector (part of the Marsh group of companies). LGIS is managed by JLT Public Sector (ABN 69 009 098 864 AFS Licence 226827).
Risk Matters, via this website, is designed to keep members, their staff and elected members informed on topical risk management and insurance issues and LGIS programs and services.
