Why Luck Is Not a Safety Strategy
What the $300,000 Segcon Case Really Teaches Australian Businesses About WHS
In construction and high risk industries, there is a belief that still quietly persists. If you engage a reputable subcontractor, the risk somehow moves with them.
Many principal contractors assume that hiring a specialist allows them to focus on delivery, timelines, and margins, trusting that safety is “being handled.” The thinking is simple. It will not happen on my site.
The Segcon Constructions Pty Ltd case shows exactly why that mindset fails.
A Near Miss That Was Almost a Fatality
During a residential construction project in North Wollongong, a 16 metre steel reinforcement cage buckled while being lifted and contacted two 11,000 volt overhead powerlines. A labourer standing only centimetres away felt the electric current travel through the wet, muddy ground beneath his feet.
The worker survived and returned to work the next day. But the NSW Industrial Court was clear. This outcome was not evidence of a safe system. It was luck.
Segcon was convicted and fined $300,000 for failing to meet its WHS obligations.
For business owners, directors, and senior leaders, this case highlights a hard truth. The absence of injury does not equal compliance. And luck is never a safety strategy.
Generic SWMS and the Illusion of Protection
One of the central failures in the Segcon case was reliance on documentation that looked compliant but had no practical connection to the site.
Segcon had a WHS and Environmental Management Plan. On paper, it appeared robust. In reality, it did not address the most significant risk on site.
The subcontractor supplied a generic Safe Work Method Statement that had been created for a different project. It did not mention overhead powerlines. It did not include electrical controls. It did not reflect the actual conditions in North Wollongong.
The court dismissed this approach outright, stating that calling it an “imperfect system” failed to capture how deficient it really was.
How Anzen Helps Prevent This
At Anzen Safety and Training, we do not rely on recycled templates. We work with businesses across Australia to develop site specific SWMS that address real, current hazards.
Our consultants review subcontractor documentation before work starts, not after an incident. We ensure controls are practical, relevant, and legally defensible so your paperwork supports safety instead of exposing gaps.
When Your Own Systems Work Against You
Segcon used a digital induction system that captured important information from workers. The problem was not the system itself. The problem was what happened next.
Both workers declared during induction that they did not hold trade qualifications or high risk work licences. Despite this, they were permitted to perform high risk construction work near live powerlines.
From a legal perspective, this created constructive knowledge. Because the information existed within Segcon’s system, the company was deemed to know the workers were unqualified.
Collecting data without reviewing it does not protect you. It documents your exposure.
How Anzen Helps Prevent This
We help businesses move from passive compliance to active WHS management. Our retained safety services include induction audits, licence verification processes, and clear escalation pathways when red flags appear.
When we support your WHS systems, issues are identified early and acted on immediately. Data becomes a control, not a liability.
Trust Is Not a Control Measure
After the incident, a new SWMS was produced that included electrical shock controls. It was dated prior to the incident but signed the day after.
The court described this as a fabrication.
While Segcon was not accused of deliberately backdating documents, the underlying issue was clear. There was no verification process in place before work began.
Under Australian WHS law, a principal contractor’s duty cannot be delegated. Trusting that subcontractors have it covered is not enough.
How Anzen Helps Prevent This
Anzen implements pre start verification protocols that ensure high risk work does not commence without compliant, site appropriate documentation in place.
We establish clear handover and sign off processes that create a defensible audit trail. You are not assuming compliance. You are verifying it.
Understanding What “Safe Distance” Really Means
Many leaders believe that visual indicators such as tiger tails on powerlines make an area safe. The court clarified that this is not the case.
At the Segcon site, tiger tails were present only on low voltage lines. They provided no mechanical protection and did not define an exclusion zone.
Environmental conditions made the risk even greater. Wet, muddy ground from concrete pumping allowed electricity to travel through the soil, even though the worker was not touching the steel cage.
Under WHS Regulation 2017, duty holders must consider sag, swing, wind, heat, and ground conductivity. The three metre exclusion zone is a minimum, not a guarantee.
How Anzen Helps Prevent This
Our consultants assess dynamic hazards, not just static ones. We account for weather, ground conditions, plant movement, and energy sources.
We design controls that reflect real world physics. Physical barriers, exclusion zones, spotters, and revised methodologies that actually protect people on site.
The Risk You Cannot Delegate
The court acknowledged that Segcon relied on a specialist subcontractor, which reduced moral culpability. But the legal duty remained entirely with the principal contractor.
One of the most obvious risks was the misuse of plant. A piling rig was being used as a crane to lift 16 metre reinforcement cages. The court described this as an incident waiting to happen.
Three reasonably practicable steps were identified that were not taken:
Proceeding before powerlines were undergrounded
Installing rigid physical barriers and clear exclusion signage
Ensuring qualified supervision and a dedicated safety spotter
How Anzen Helps Prevent This
Anzen provides independent site oversight. We identify plant misuse, unsafe methodologies, and emerging risks before they escalate.
We verify how work is actually being done, not just how it was planned. Our consultants have the authority and expertise to intervene early, protecting your people and your business.
The True Cost of the Segcon Incident
The $300,000 fine was only part of the impact.
Additional costs included legal fees, $120,000 to remove overhead powerlines, redesigning piling methods, employing a full time safety officer, and reputational damage affecting future tenders.
A conservative estimate places the total cost well over $500,000.
The real question is this. What would proactive, expert WHS support have cost by comparison?
Why Businesses Choose Anzen Safety and Training
The Segcon case makes one thing clear. Compliance is not paperwork. It is an active, ongoing process that requires expertise, verification, and leadership commitment.
Anzen Safety and Training supports Australian businesses with:
Site specific SWMS development
Active compliance monitoring
Pre start verification systems
High risk work hazard assessments
Independent site inspections
Subcontractor safety management frameworks
Retained WHS support for ongoing assurance
Our Difference: Psychosocial Safety Leadership
Safety culture starts at the top. Beyond physical risk, we integrate psychosocial safety into our approach so workers feel confident to speak up, challenge unsafe practices, and stop work when needed.
Psychological safety is often the control that prevents obvious risks from being ignored.
The Bottom Line
If a worker declared today that they held no high risk licence, would your system notice?
If plant was being used outside its design limits, would someone intervene?
Or would you be relying on luck?
The Segcon case shows that paper compliance does not protect people or businesses. Expertise does.
Ready to Strengthen Your WHS Systems?
Phone or email us today to book your consultation and take the first step toward defensible, effective workplace safety across Australia.
Email: info@anzen.com.au | Phone: 1300 269 361
