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.
Definition of related entities
‘Related entities’ refers to a range of corporate structures, including subsidiaries, joint ventures, and special-purpose companies, as well as companies where there are common directorships or influence over other companies through shareholdings.
The related entities of any contractor seeking or engaged on Australian Government construction projects are also subject to the Code and Guidelines.
Why do related entities need to be Code compliant?
With the revision of the Guidelines in September 2005, since 1 November 2005 all new Australian Government funded projects require tenderers to apply the Guidelines to all their building and construction related entities.
This is to ensure that:
entities created specifically for the purpose of tendering for construction projects funded by the Australian Government cannot be used to avoid the requirement to be Code compliant;
the Australian-based private construction work of a tenderer’s related entities are covered by the Code and Guidelines; and
- all related entities have all their building and construction-related industrial instruments or workplace arrangements Code compliant.
Code Responsibilities
Expressions of interest and tendering
In order to be eligible for Australian Government funded work, a tenderer must:
- confirm that it and its related entities are Code compliant
confirm that it and its related entities will comply with the Code and Guidelines in new privately funded projects they undertake
provide information on how the tenderer and its related entities have previously complied with the Code and Guidelines in the past, if applicable.
On-site Code Compliance
In order for on-site practices to be Code compliant, contractors must have satisfactory processes in place to ensure subcontractors, consultants and material suppliers comply with the Code and Guidelines. These include:
monitoring on-site conduct to ensure subcontractors maintain Code compliance
applying practices consistent with the Code and Guidelines on all new projects once they have submitted their first expression of interest or tender for a project that is subject to the Code and Guidelines.
These practices may also apply to the related entities of the contractor.
For more information refer to ABCC fact sheets:
- Code and Guideline Compliance for Head Contractors (PDF 151KB)
- Code and Guideline Compliance for Subcontractors (PDF 153KB)
Private projects
Parties tendering for Australian Government funded building and construction projects called on or after 1 November 2005 must ensure all of their new privately funded activities are Code compliant.
A ‘new privately funded project’ means a project where expressions of interest or tenders are advertised on or after the date that a company first lodges an expression of interest or tender for an Australian Government-funded construction project.
For more information see Code and Guidelines Compliance for Private Work (PDF 152KB)fact sheet.
Print Friendly version - Code and Guidelines Compliance for Related Entities (PDF 147KB)
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
Hotline: 1800 003 338
Website: www.abcc.gov.au
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
Print friendly version:
Code and Guidelines Compliance for Related Entites fact sheet (PDF KB)
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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