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Confusion over site allowances


National , Alert 

Release date: 18 May 2007 

The Australian Industrial Relations Commission (AIRC) is again reviewing a decision by the Victorian Building Industry Disputes Panel (VBIDP) on the need to pay site allowances on a particular building project.

The case relates to a civic centre and sports facility being constructed by J A Dodd Ltd. The VBIDP has ruled that this forms part of the Caroline Springs Town Centre Project valued at $155 million, and therefore a substantial site allowance is payable in accordance with the certified agreement.

This is the third review by the AIRC of a VBIDP ruling on site allowances and the second involving the Caroline Springs development. In the two previous cases, the AIRC overturned the VBIDP’s decision. The ABCC will intervene in the review when hearings commence.

A common form of Victorian building industry collective agreements provide that site allowances are payable on new projects valued at over $2.2 million, and rises incrementally according to the value of the project. A site allowance schedule is usually included in these certified agreements.

The ABCC will act to assist those subject to demands for site allowances where such claims are considered to be inconsistent with the terms of their agreements. The ABCC will also intervene in proceedings to seek to ensure that the site allowance provisions of agreements are observed in line with AIRC rulings.

If you have concerns about the payment of site allowances contact the ABCC on 1800 003 338.

Further reading:

- Email alert: Clarified: What is the meaning of “Project”? - 5 January 2007

- Industry Update - February 2007

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This newsletter was correct as at 18 May 2007.