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.
When did the National Code and Guidelines come into effect?
The National Code of Practice for the Construction Industry (National Code) was introduced in 1997. The Australian Government Implementation Guidelines for the National Code (Guidelines) have undergone several revisions with the most recent version coming into effect in August 2009.
When do the National Code and Guidelines apply?
The National Code and Guidelines apply to Australian building projects funded by the Australian Government according to the following funding values:
- directly funded by the Australian Government – all building and construction work where the Australian Government has direct financial and administrative involvement. This applies irrespective of the total value of the project.
- indirectly funded by the Australian Government – building and construction work where the Australian Government contributes:
o at least $5 million, and the funding represents at least 50 per cent of the total construction project value, or
o $10 million or more, irrespective of the proportion the Australian Government funding represents of the total construction project value.
Privately funded projects
A contractor who submits a tender or expression of interest in an Australian Government funded project on or after 1 November 2005 must apply the National Code and Guidelines to any privately funded building project they undertake that commences after that date.
The contractor is required to apply the version of the Guidelines that was current at the time they submitted the tender or expression of interest in the Australian Government funded project. For more information see ‘Which Version of the Implementation Guidelines Applies to your Project?’ fact sheet.
What activities are covered by the National Code and the 2009 Guidelines?
The National Code and Guidelines apply to:
- construction activity – building, demolition, landscaping, maintenance, civil engineering, process engineering, mine structures and heavy engineering
- building refurbishments – fit outs, installation of security systems, fire protection systems, air conditioning systems, computer and communication cabling
- building activities that occur on holding or auxiliary sites – for example a batching plant for a road project.
The National Code and Guidelines do not apply to:
- maintenance of building systems, such as fire protection and air conditioning systems
- garden maintenance, such as lawn mowing, pruning and other horticultural activities
- material suppliers who solely supply construction materials and do not participate in on-site activities
- cleaning.
Preclusions and Sanctions
A contractor cannot be considered for Australian Government funded construction projects if they have a court decision against them relating to employee entitlements and those entitlements have not been paid. This does not apply to court decisions that are currently under appeal.
Sanctions may be imposed where a party fails to meet the obligations outlined in the National Code and Guidelines. Sanctions range from a formal warning to preclusion from tendering for Australian Government funded building work for up to six months.
Checklist items:
1. Do the National Code and Guidelines apply to my work on the project?
- Construction activity – YES
- Ongoing maintenance of building systems – NO
2. If this is an Australian Government funded project, do the National Code and Guidelines apply?
- Directly Government funded – YES
- Indirectly Government funded:
o $5 million funding representing more than 50 per cent of project value – YES
o $10 million funding – YES
3. Have I or any of my related entities submitted any tenders or expressions of interest in Australian Government funded projects since 1 November 2005?
- YES – the National Code and Guidelines apply to any privately funded project I enter into after the date of lodging the tender or expression of interest.
- NO – the National Code and Guidelines do not apply to any privately funded project I work on.