The National Code of Practice for the Construction Industry (the Code) establishes minimum standards businesses must meet to be eligible for Australian Government building and construction work.
The Australian Government Implementation Guidelines for the National Code of Practice for the Construction Industry (the Guidelines), provide supporting detail on Code compliance requirements.
Only parties who are Code compliant can tender to undertake building and construction activities on Australian Government funded projects. This condition applies to the head contractor, subcontractors, project managers, consultants and material suppliers.
What are ‘privately funded projects’?
The 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 construction activity where Australian Government departments, agencies and budget funded statutory authorities are responsible for funding 100% of the project. This applies irrespective of the total value of that project.
indirectly funded by the Australian Government - building and construction work where the Australian Government contributes:
at least $5 million, and the funding represents at least 50 per cent of the total construction project value or
$10 million or more, irrespective of the proportion the Australian Government funding represents of the total construction project value.
‘Privately funded construction projects’ are all projects that do not meet the criteria for Australian Government directly funded or indirectly funded projects as defined above.
Also see the Guidelines: Section 2 - Application and Scope.
When do the Code and Guidelines apply to privately funded projects?
From the date that a party first lodges an expression of interest (EOI) or tender for Australian Government construction work under the Code and Guidelines, it must also apply the Code and Guidelines to new privately funded projects. This also applies to a company’s related entities
Also see:
- Code and Guidelines Compliance for Related Entities (PDF 147KB) fact sheet
- Section 2.6 of the Guidelines.
Parties undertaking Australian Government funded construction work do not have to apply the Code and Guidelines to privately funded projects which commenced prior to the first time they lodge an EOI or tender for an Australian Government funded project covered by the Code and Guidelines.
Do all contractors on privately funded projects need to be Code compliant?
Not all contractors may need to be Code compliant on privately funded projects. The requirement to comply with the Code and Guidelines will depend on whether they have tendered for Australian Government work.
A subcontractor’s Code compliance status on a privately funded project does not affect the head contractor’s Code status.
Increasingly, head contractors are requiring Code compliance on all of their privately funded projects. In these circumstances, this is a contractual matter between the head contractor and their subcontractors.
Who is responsible for ensuring Code compliance?
It is the responsibility of each tenderer to ensure their own workplace arrangements and behaviour is Code compliant on privately funded projects.
Tenderers required to apply the Code and Guidelines on privately funded projects are not required to ensure Code compliance of their subcontractors on these projects.
How the Code and Guidelines are applied to privately funded projects before and after 1 November 2005.
There are different guidelines for projects where tenders were made for Australian Government work before or after 1 November 2005.
Before 1 November 2005
Government funded project
The tenderer must comply with the Guidelines, issued December 2003 on any Government funded projects where tenders or EOI occurs before 1 November 2005.
Privately funded project
The tenderer does not need to be Code compliant on privately funded projects.
On or after 1 November 2005
Government funded Project
The tenderer must comply with the Guidelines, revised September 2005, reissued June 2006 where tenders or EOI occurs on or after 1 November 2005.
Private Funded project
The tenderer must be Code compliant on private projects where the tender or EOI occurs on or after the tender date for the Government funded project after 1 November 2005. However, the Code and Guidelines do not apply to any private projects where tender or EOI occurred before the date of tender or EOI for the Government funded project.
The Code Compliance Contractual Chain
Further information
To make an enquiry or obtain copies of the Code and Guidelines, fact sheets and other reference material, go to:
The Office of the Australian Building and Construction Commissioner
Department of Education, Employment and Workplace Relations
Assessment of workplace arrangements for Code compliance:
Go to Code Assessments Online at: www.workplace.gov.au/building
Note:
Most building and construction activities undertaken by project managers will need to conform to the current version of the Guidelines (Blue cover). However, if the funding or formal arrangement was entered into before November 2005 then the previous version of the Guidelines (Orange cover) will normally apply.
Print Friendly version: Code and Guidelines Compliance for Private Work (PDF 153KB)
The information in this fact sheet us correct as at 12 May 2008.
Disclaimer: This material is for general information only. You should seek legal advice in relation to your particular circumstances. The Australian Government, its employees and agents do not accept any liability for action taken in reliance on this document and disclaim all liability arising from any error or omission. ABN 68 003 725 098
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