The National Code sets minimum standards that businesses must meet to be eligible for certain Australian Government building and construction work.
The National Code Implementation Guidelines provide supporting detail on compliance requirements.
See other ABCC fact sheets to determine when the National Code applies and which set of Guidelines to use.
This fact sheet applies to all projects that were the subject of an expression of interest or tender let for the first time on or after 1 August 2009 .
Definition of related entities
‘Related entities’ refers to a range of corporate structures, including subsidiaries, joint ventures and special-purpose companies, as well as companies where there are common directorships or influence over other companies through shareholdings.
The related entities of any contractor seeking or engaged on Australian Government construction projects are subject to the National Code of Practice for the Construction Industry (National Code) and Australian Government Implementation Guidelines for the National Code (Guidelines).
Why do related entities need to be National Code compliant?
Since 1 November 2005, following revision of the Guidelines in September 2005, all new Australian Government funded projects require tenderers to apply the Guidelines to all their building and construction related entities.
This is to ensure that:
- companies do not create a related entity whose purpose is to tender for construction projects funded by the Australian Government so that the primary company can avoid the requirement to be National Code compliant, and
- the Australian based private construction work of a tenderer’s related entities is covered by the National Code and Guidelines.
National Code responsibilities
Expressions of interest and tendering
In order to be eligible for Australian Government funded work, a tenderer must:
- confirm that it and its related entities are National Code compliant
- demonstrate that it and its related entities have National Code compliant workplace arrangements – for more information see ‘Workplace Arrangements’ fact sheet
- confirm that it and its related entities will comply with the National Code and Guidelines in new privately funded projects they undertake.
On-site National Code compliance
In order for on-site practices to be National Code compliant, contractors must have satisfactory processes in place to ensure subcontractors, consultants and project managers comply with the National Code and Guidelines. These include:
- monitoring on-site conduct to ensure subcontractors maintain National Code compliance
- applying practices consistent with the National Code and Guidelines on all new projects once they have submitted their first expression of interest or tender for a project that is subject to the National Code and Guidelines.
These practices may also apply to the related entities of the contractor.
For more information refer to the ABCC fact sheets:
Private projects
Parties tendering for Australian Government funded building and construction projects called on or after 1 November 2005 must ensure all of their new privately funded activities are National Code compliant.
A ‘new privately funded project’ means a project where expressions of interest or tenders are advertised on or after the date that a company first lodges an expression of interest or tender for an Australian Government-funded construction project.
For more information see National Code and Guidelines Compliance for Private Work 2009 fact sheet.