The application was one of five to be accepted, alongside other industry organisations including forestry and construction.
Safe365 was the three boards' preferred on-line health and safety programme, designed to enable businesses to assess and improve their health and safety capability, culture and performance on an ongoing basis.
The boards use the tool for their internal health and safety processes and small trials with contractors had already been carried out in Hawke's Bay.
The new funding will enable the project to be extended to around 200 contractors in each health board area.
In Hawke's Bay that equated to a significant number of small-to-medium-sized businesses, providing services ranging from health care, building, electrical and plumbing, to maintenance, engineering and cleaning.
HBDHB Executive Director of People and Quality Kate Coley said across suppliers, health and safety activities were carried out differently, depending on how long they'd been in business, staff size, the work they undertook and the level of risk.
"By being part of this initiative, they will have help to understand their health and safety system, their capabilities, culture and performance, and at the same time be supported to identify any gaps and make improvement.
"The project is about understanding and supporting our local businesses to build their knowledge and capability around health and safety, which in turn keeps both their staff and our staff safe", Coley said.