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 further 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.
The Code and Guidelines apply to:
- directly funded Australian Government work
- indirectly funded Australian Government work, thresholds apply
- privately funded work in certain circumstances.
The obligation to comply with the Code and Guidelines passes down the contractual chain from the client to head contractor to subcontractors, suppliers and consultants. All parties along this contractual chain must be informed that the Code and Guidelines apply to the project.
Building industry participants interested in working on Code compliant building and construction work must be informed that the Code and Guidelines apply to the project. Ultimately, it is the responsibility of the client or head contractor to ensure that these information requirements are met.
See the ABCC fact sheet: The National Code of Practice for the Construction Industry and Implementation Guidelines (PDF 157KB).
When do I have to comply with the Code and Guidelines?
From the date a contractor or its related entities tender for Australian Government funded building and construction work, it must comply with the Code and Guidelines on all its future projects, both Australian government and privately funded. This is regardless of whether the tender is successful or not.
Documentation
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 either contain copies of the Code and Guidelines as an attachment, be made available on request or advise that the Code and Guidelines can be viewed at 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.
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.
Declaration of compliance
Site management may ask subcontractors to provide a “Declaration of Compliance” statement for their records. This will confirm that the subcontractor is aware of its commitment to comply with the Code and Guidelines.
Workplace arrangements
A contractor must ensure its:
- industrial instruments are Code compliant before making an expression of interest or tendering for Australian Government funded building and construction work
- subcontractors and material suppliers are complying with the Code and Guidelines
- contracts include the requirement to comply with the Code and Guidelines
- on-site work behaviours are consistent with the Code and Guidelines.
The Department of Education, Employment and Workplace Relations (DEEWR) provides a free service to assess industrial instruments against the Code and Guidelines. DEEWR can provide a letter advising whether workplace arrangements are Code compliant.
What assistance is available?
- Model tender documentation, contract clauses and a “Declaration of Compliance” template are available on the DEEWR website: www.workplace.gov.au/building
- These documents contain model tender clauses and contract provisions for drafting contracts relating to projects either directly or indirectly funded by the Australian Government and may be adopted on privately funded projects by head contractors.
- Assessment of Workplace Arrangements - DEEWR can assess your workplace arrangements for compliance. This normally involves an assessment of industrial instruments that cover a contractor. If not compliant, DEEWR will issue a letter identifying which clauses of the industrial instrument are inconsistent with which provisions of the Code and Guidelines. If your industrial instrument is not Code compliant, you will be unable to tender for Australian Government funded building and construction work.
Checklist items:
1. Have you received documentation that includes:
- a statement that the project is subject to the Code and Guidelines?
- access to a copy of the Code and Guidelines?
- a request to submit a “Declaration of Compliance”?
YES - you must be Code compliant to work on this project.
NO - Find out if the Code and Guidelines apply to this project.
2. Are your workplace arrangements compliant with the Code and Guidelines?
YES - You are eligible to express interest in or tender for Australian Government funded building and construction work.
NO - You are not eligible to express interest in or tender for Australian Government funded building and construction work.
You may wish to seek confirmation from DEEWR by submitting your industrial instrument for assessment.
Further Information
You can download a printable version of this fact sheet here: How do I know when the Code and Guidelines apply? (PDF - 159KB)
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
The information contained in this fact sheet is correct as at 26 February 2008.
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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