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.
What activities are covered by the Code and Guidelines?
The Code and Guidelines apply to:
- construction activity - building, demolition, landscaping, maintenance, civil engineering, process engineering, mine structures and heavy engineering
- building refurbishments - fit outs, installation of security systems, fire protection systems, air conditioning systems, computer and communication cabling
- material suppliers - suppliers who manufacture and/or supply construction components integral to a project.
The Code and Guidelines do not apply to:
maintenance of building systems, such as fire protection and air conditioning systems
garden maintenance, such as lawn mowing, pruning and other horticultural activities
cleaning.
When did the Code and Guidelines come into effect?
The Code was introduced in 1997. The Guidelines have undergone some minor revisions with the most recent coming into effect in June 2006.
When do the Code and Guidelines apply?
The Code and Guidelines apply to Australian building projects funded by the Australian Government according to the following funding values:
- directly funded by the Australian Government – all building and construction work where the Australian Government is responsible for funding 100% of the project. This applies irrespective of the total value of that project.
- indirectly funded by the Australian Government - building and construction work where the Australian Government contributes:
o at least $5 million, and the funding represents at least 50 per cent of the total construction project value or
o $10 million or more, irrespective of the proportion the Australian Government funding represents of the total construction project value.
Privately Funded Projects
Any contractor that submits a tender or expression of interest in an Australian Government funded project on or after 1 November 2005, must apply the Code to any privately funded building and construction work commencing after that date.
Sanctions
Sanctions may be imposed where a party fails to meet the obligations outlined in the Code and Guidelines. Sanctions range from a formal warning to preclusion from tendering for Australian Government funded building work for up to six months.
Checklist items:
1. Do the Code and Guidelines apply to my work on the project?
- Construction activity – YES
- Ongoing maintenance of building systems – NO
2. If this is an Australian Government funded project, do the Code and Guidelines apply?
- Directly Government funded – YES
Indirectly Government funded:
o $5 million funding representing more than 50% of project value – YES
o $10 million funding – YES
3. Have I or any of my related entities submitted any tenders or expressions of interest in Australian Government funded projects since 1 November 2005?
- YES - the Code and Guidelines applies to any privately funded project I enter into after the date of lodging the tender or expression of interest.
- NO - the Code and Guidelines do not apply to any privately funded project I work on.
Further Information
You can download a printable version of this fact sheet here: The National Code of Practice for the Construction Industry and Implementation Guidelines (PDF - 157KB)
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
V1.00