A recent decision of the Australian Industrial Relations Commission ("AIRC") has provided guidance on the factors to be considered in determining what is a project for the purposes of determining the amount of site allowance payable under a certified agreement.
Victorian Building Industry Disputes Panel decision overturned
On 21 September 2006, Deputy President Ives of the AIRC Melbourne overturned the decision of the Victorian Building Industry Disputes Panel ("the Panel").
The application for review by the AIRC of a decision of the Panel was made under s.170LW of the pre-reform Workplace Relations Act 1996.
The review related to the interpretation of the site allowance formula in a certified agreement. The agreement provided that no site allowance is payable on any project where the "project value" is below $2.1 million.
Case Details
CDK Commercial Construction is constructing a swimming pool with a value of $1.3 million. The CFMEU claimed that the pool is part of the Caroline Springs Town Centre Development, the total value of which is claimed to be $155 million.
Originally, the Panel had held that the swim centre being constructed at Caroline Springs by CDK Constructions formed part of a larger development, the Caroline Springs Town Centre Project and that a site allowance of $3.15 should apply, being the allowance applicable to projects valued between $117.1 million and $175.5 million. The Panel ruled the "project value" was $155 million, not $1.3 million.
Decision
In his decision, DP Ives accepted both the contract and the building permit as authoritative statements of the value of the swim centre.
Accordingly, since the certified agreement provided that no site allowance was payable on projects valued at less than $2.1 million, no site allowance is payable on the swim centre site.