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 a Subcontractor
Subcontractors must comply with the Code and Guidelines:
- to work on any Australian Government funded building and construction projects
- when working on any new private project following their commitment to the Code and Guidelines
The subcontractor is also obliged to advise any subcontractors and material suppliers that they engage on such projects that the Code and Guidelines apply.
Achieving Code compliance prior to commencement of the project
The head contractor will have practices in place to ensure subcontractors comply with the principles of the Code and Guidelines. Prior to commencement on site, subcontractors may be asked to:
- undertake a formal workplace arrangement assessment
- complete a ’Declaration of Compliance’
- complete a ’Code Compliance Checklist’.
Workplace arrangements
The subcontractor must ensure its workplace arrangements are Code compliant before making an expression of interest, tendering or undertaking work for a head contractor on an Australian Government funded building and construction project.
The Department of Education, Employment and Workplace Relations (DEEWR) can assess your workplace arrangements for compliance with the Code and Guidelines. 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.
Model tender and contract documentation
Model clauses have been prepared by DEEWR for use within tender and contract documents. Subcontractors should use these clauses when preparing tenders and contracts for building and construction projects covered by the Code and Guidelines.
The booklet Model tender and Contract Documentation is available through the ABCC and DEEWR websites (see website addresses listed below).
Declaration of Compliance
A ’Declaration of Compliance’ can be found in the Model Tender and Contract Clauses booklet. The head contractor may ask the subcontractor to submit a ‘Declaration of Compliance’ this document as a means of confirming their commitment to comply with the Code and Guidelines.
The subcontractor may also ask any subcontractor they intend to engage for the project to complete this document.
Establishing Code compliance on site
In order for on site conduct to be Code compliant, subcontractors must ensure:
- freedom of association, that is whether or not to belong to a union or employer association, is a matter of choice of the employee or employer
- their employee records are secure and not provided to any third party
- compliance with occupational health and safety obligations in accordance with the relevant state and federal laws
- threatened or actual industrial action on a project is reported to the ABCC
- no attempt is made to unduly influence any subcontractors to have particular workplace arrangements or to make over-award payments
- the ABCC is notified of any alleged breaches, remedial action taken or other Code-related matters within 21 days of becoming aware of the alleged breach
Material supply contracts under the Code and Guidelines
The Code and Guidelines cover 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.
For information, see the Am I a Material Supplier? Fact Sheet (available at www.workplace.gov.au/building).
Sanctions
Sanctions can be applied where a party has failed to meet their obligations under the Code and Guidelines.
Sanctions can include a formal warning and, in more serious cases, a preclusion from tendering for Australian Government funded construction projects.
Sanctions applied under the Code and Guidelines are in accordance with decisions advised by the Code Monitoring Group.
For information, see the A Guide to Sanctions Fact Sheet (available at www.workplace.gov.au/building).
Further information
To make an enquiry or obtain copies of the Code and Guidelines, fact sheets and other reference material, visit the National Code page and Fact Sheets page of the ABCC website or go to:
The Office of the Australian Building and Construction Commissioner
Hotline: 1800 003 338
Website: www.abcc.gov.au
Email: enquiry@abcc.gov.au
Department of Education, Employment and Workplace Relations
National Code Mailbox: building@deewr.gov.au
Code Hotline on 1300 731 293.
Assessment of workplace arrangments for Code compliance:
Go to Code Assessments Online at www.workplace.gov.au/building
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Code and Guidelines Compliance for Subcontractors fact sheet (PDF 148KB)
The information contained in this fact sheet is correct as at 26 February 2008.
Note:
Most building and construction activities undertaken by subcontractors 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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