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 complaint 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 Office of the Australian Building and Construction Commissioner (ABCC) monitors the workplace relations aspects of the Code. The ABCC provides education and advice on the practical application of the Code and Guidelines. It conducts site inspections and audits and may refer the results of its investigations to the Code Monitoring Group (CMG).
Site Inspections
Site inspections are short visits conducted by ABCC Officers who arrive at the site unannounced. The inspections last approximately one hour and typically involve:
- briefing site management on the inspection process and
- reviewing relevant documentation relating to such matters as right of entry, freedom of association practices and industrial and OHS disputes.
A report is submitted to ABCC management and any follow up action, such as further inspections or audits, is identified.
Audits
Audits are an in-depth examination of business systems and practices to ensure they are consistent with the Code and Guidelines.
On-site
The ABCC phones or emails the builder or client of the impending audit approximately one week prior to the audit. On-site audits usually last 3-4 days and typically involve:
- briefing site management on the audit process
- examining site records, including electronic records, in detail
- obtaining copies of relevant documents
- conducting a physical site inspection and
- recording formal interviews with selected project and site managers.
Upon conclusion of the on-site audit a debriefing session is conducted with the site management.
Off-site
ABCC Officers contact subcontractors and suppliers and arrange audits that last approximately one hour. The audit involves:
- obtaining and reviewing documents, such as time and wage records and
- recording a formal interview with the subcontractor or supplier.
Reports
Reports are prepared for the government client agency, project manager, head contractor and subcontractors involved in the audit. Advice of the findings and, when necessary, suggested rectification of issues are reported to the government client agency. Copies of the reports are forwarded to the CMG for information and action.
What does the CMG do?
The CMG is a committee of senior officials from the Departments of Education, Employment and Workplace Relations, Finance, Defence, Transport and Regional Services, Prime Minister and Cabinet and the ABCC.
The CMG has the power to:
- require contractors to demonstrate their compliance with the Code and Guidelines
- determine if breaches have occurred and
- require contractors to show cause as to why they should not be sanctioned for a breach of the Code and Guidelines.
The CMG can recommend to the Minister for Education, Employment and Workplace Relations that formal sanctions be imposed on contractors who breach the Code. Sanctions range from formal warnings to preclusion from tendering for Australian Government funded building and construction projects for up to six (6) months.
Details of CMG procedures can be found at:
http://workplace.gov.au/workplace/Organisation/Industry/BuildingConstruction/
Advice for building industry participants
It is important that you keep records and documents that demonstrate your efforts to be compliant with the Code and Guidelines. This includes contracts, tender documents, industrial agreements and right of entry records.
Further Information
You can download a printable version of this fact sheet here: Role of the ABCC in administering the Code (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 this website or contact:
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 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 26 February 2008.
Produced by the Office of the Australian Building and Construction Commissioner ABN 68 003 725 098 The material contained in this pamphlet is for general information only. It does not reflect all the technicalities of the relevant law and 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 errors or omissions contained in this document.
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