Mr Tony Arnel
The Building Commissioner
Building Commission
PO Box 563E
MELBOURNE VIC 3001
Dear Mr Arnel
Victorian Code of Practice – Review
I am advised that the Building Commission is conducting a review of the Code of Practice for the Building and Construction Industry – Victoria. I understand the purpose of the review is to develop a new approach to improving standards of practice in the industry.
The policy and regulatory settings for the building and construction industry have been subject to substantial change in recent years. A key change has been the introduction of the Building and Construction Industry Improvement Act 2005 (Cth) (BCII Act). The main object of the Act is:
“to provide an improved workplace relations framework for building work to ensure that building work is carried out fairly, efficiently and productively for the benefit of all building industry participants and for the benefit of the Australian economy as a whole.”
As a reflection of this changed regulatory environment, the National Code of Practice for the Construction Industry is having an increasingly important impact. The National Code covers both building and construction activity. The National Code is supported by guidelines. The Australian Building and Construction Commissioner (ABCC) is responsible for securing compliance with the workplace relations provisions of the National Code. The Australian Government’s Implementation Guidelines for the National Code of Practice set out the workplace relations requirements to achieve compliance with the National Code.
The latest edition of the Implementation Guidelines introduces important changes that affect the obligations of state government agencies. It is now a requirement for Australian Government, state and territory agencies to only accept tenders for Australian Government funded construction projects from contractors that are compliant with the National Code and Implementation Guidelines. Compliance is required to be achieved at the time the contractor lodges its tender or expression of interest. Also, the contractors are required to apply the Code and Implementation Guidelines to privately funded projects that commence after they lodge a tender or an expression of interest. Privately funded projects are defined as all projects other than Australian Government directly funded or indirectly funded projects.
It follows that it is important that where the Victorian Code addresses workplace relations matters
it is consistent with the National Code and Implementation Guidelines. The present Victorian Code is inconsistent with the National Code and Implementation Guidelines. It also appears to be inconsistent with Federal workplace relations legislation such as the BCII Act and the Workplace Relations Act 1996 (Cth). It is my understanding that the current workplace relations elements of
the Victorian Code are enunciated in the “Code of Practice for the Building and Construction Industry – Victoria, Industrial Relations Principles.” A number of provisions in this document, I submit, are inconsistent with the Code, the Guidelines and legislation.
Such a situation can only lead to confusion amongst contractors and other building industry participants. This is especially so as contractors in all states are devoting increasing attention to being compliant with the National Code and Guidelines on all their construction work. It would be most regrettable if compliance with the Victorian Code compromised a contractor’s ability to comply with the National Code.
The ABCC shares the desire of the Victorian Building Commission to improve the standard of conduct throughout the building and construction industry. We are willing to cooperate in any review of the Victorian Code that is undertaken by your Commission. If you wish to take up this offer I suggest you contact me in the first instance.
I am anxious to avoid a situation where we are required to advise contractors that compliance with the Victorian Code will not achieve compliance with the National Code and Implementation Guidelines.
Yours sincerely
John Lloyd
ABC Commissioner