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.
Responsibilities of the Project Manager
The role of the project manager can vary depending on the contractual arrangement they have with the client agency. This will also influence the project manager’s responsibilities in regard to the Code compliance of the project. These responsibilities may include:
ensuring all tender and contract documents and workplace arrangements comply with the Code
ensuring all related entities and material suppliers comply with the Code
applying Code compliant practices to the project
monitoring on-site behaviours and implementing remedies to ensure Code compliance is in place and maintained.
Contractual arrangements
The contractual arrangements between the client agency, project manager and contractors on site will vary.
One approach is for the project manager to act on behalf of the client agency to ensure compliance with the Code and Guidelines throughout the life of the project.
This includes the responsibility for ensuring the requirement to comply with the Code and Guidelines is passed down the contractual chain to all parties involved on the construction project.
The project manager must also ensure that the workplace arrangements of the head contractor, subcontractors, consultants and material suppliers comply with the Code and Guidelines before engaging them on the project.
Other arrangements may involve the project manager being contracted to provide advice on various management issues relating to the project. In these circumstances, while the project manager needs to be compliant, responsibility for ensuring contractors are Code compliant and for the application of the Code remains with the client agency.
Also see: Sections 5.2 and 6.3 of the Guidelines (Contractors, subcontractors, consultants, project managers and employees)
Ensuring all tender and contract documents comply with the Code
Expressions of interest and tendering
Public tender material such as advertisements, expressions of interest and requests for tender must contain advice that the Code and Guidelines apply to the project.
Tender documents must contain copies of the Code and Guidelines as an attachment, or confirm that copies can be made available on request or advise that the Code and Guidelines can be viewed at http://www.abcc.gov.au/abcc/NationalCode/
Tender schedules must contain an undertaking to apply the Code and Guidelines on the project and any new private construction work.
Contractual documents
Contracts must include clauses that bind subcontractors, material suppliers and consultants to the Code and Guidelines. This includes contracts for major and minor works and purchase orders.
Model tender and contract documentation
Model clauses have been prepared by the Department of Education, Employment and Workplace Relations (DEEWR) for use within tender and contract documents. These clauses should be used when preparing tenders and contracts for building and construction projects covered by the Code.
The model contract clauses require the head contractor to:
undertake to comply with the Code and Guidelines and ensure all related construction entities comply with the Code and Guidelines
ensure that subcontractors, consultants and material suppliers’ workplace arrangements comply with the Code and Guidelines before engaging them on the project
continue to ensure that all contracts on the project include the requirement to comply with the Code and Guidelines
agree to allow the Office of the Australian Building and Construction Commissioner (ABCC) to monitor Code compliance on the site and to investigate any breaches of the Code and Guidelines
acknowledge that the Commonwealth may impose a sanction should parties to the project not comply with the Code and Guidelines
agree to comply with the Code and Guidelines on new privately funded construction projects.
For more information see the Model tender and Contract Documentation for Contractors booklet.
Ensuring workplace arrangements comply with the Code
Workplace arrangements
Workplace arrangements must be Code compliant before an expression of interest or tender for Australian Government funded building and construction work can be made.
DEEWR can assess workplace arrangements for compliance with the Code and Guidelines. This normally involves an assessment of industrial instruments that apply to the contractor. If not compliant, DEEWR will issue a letter identifying which clauses of the industrial instrument are inconsistent with specific provisions of the Code and Guidelines.
If workplace arrangements are not Code compliant, it may be possible to vary the arrangements in order to seek Australian Government work.
Declaration of Compliance
A "Declaration of Compliance" can be found in the "Model Tender and Contract Documentation for Contractors" booklet. The funding agency may ask the head contractor to submit this document as a means of confirming its commitment to comply with the Code and Guidelines.
The head contractor as part of its monitoring obligation may also ask subcontractors to complete a "Declaration of Compliance" statement for their records.
Ensuring all related entities and material suppliers comply with the Code
Related entities
The Code and Guidelines apply to a tenderer and all its construction related entities once they submit an expression of interest or tender for a Government funded project.
Related entities refers to a range of corporate structures, including subsidiaries and joint ventures where there are common directorships or influence over other companies through shareholdings.
Also see the ABCC fact sheet Code and Guidelines Compliance for Related Entities (PDF 147KB)
Material suppliers
The Code covers material supply contracts where the supplied material is integral to the construction of the project or relates to prefabrication of made-to-order components to form part of any building, structure or works.
Also see the Am I a Material Supplier? fact sheet (available at www.workplace.gov.au/building).
Applying and monitoring Code Compliance on site
In order for on site practices to be Code Compliant, the contractor must have satisfactory processes in place to ensure subcontractors, consultants and material suppliers comply with the Code and Guidelines. These include:
The Contractor should have recording and reporting mechanisms that demonstrate these features are an integral part of its Code monitoring processes.
Print friendly version - Code and Guidelines Compliance for Project Managers (PDF 112KB)
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
The information contained in this fact sheet is correct as at 12 May 2008.
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.
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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