Current publications:
- National Code of Practice for the Construction Industry 1997 [PDF 31.5Kb]
- Implementation Guidelines for the National Code of Practice - 2006 [PDF 298Kb] [Word 532Kb]
- Brochure - Six Workplace Relations Principles for Code Compliance [PDF 87KB]
- NEW Model Tender and Contract Documentation [PDF 254Kb] [Word 485Kb]
- Joint Implementation Guidelines for Auslink Projects - South Australia [PDF 189Kb] [Word 213Kb]
Earlier publications:
- 2003 Implementation Guidelines [PDF 203Kb]
- 2005 Model Tender and Contract Documentation for Directly Funded Projects [Word 84Kb]
- 2005 Model tender and Contract Documentation for Indirectly Funded Projects [Word 102Kb]
- Model Tender and Contract Documentation for Government agencies - Feb 2008 [PDF 99Kb]
- Model Tender and Contract Documentation for Contractors - Feb 2008 [PDF 206Kb]
The ABCC has also produced a suite of fact sheets regarding the National Code. See our Fact Sheets page for more information.
Role of the ABCC
The ABCC is responsible for investigating alleged breaches of the industrial relations provisions of the National Code. Information and advice about becoming Code compliant can be obtained from the Building and Construction Industry section of the Australian Government’s Workplace website.
What are the National Code and the Implementation Guidelines?
The National Code and the 2006 Implementation Guidelines set out best practice principles for the building and construction industry. These principles reflect national workplace relations laws and have been endorsed by the Commonwealth, State and Territory Governments. The purpose of the Code and 2006 Guidelines is to improve upon existing industry culture and practices for the benefit of building industry participants and the Australian economy.
When do the Code and Guidelines apply?
The Code and Guidelines apply to all construction projects that are directly and indirectly funded by the Australian Government. They apply to projects that are jointly funded by the Australian Government and State and Territory Governments.
The Australian Government requires workplace relations laws to be strictly applied on all government-funded projects and it will not engage the services of contractors who do not uphold the law. Therefore, in order to be eligible to tender or lodge an expression of interest for work on Australian Government projects after 1 November 2005, all your workplace arrangements must be Code compliant.
IMPORTANT NOTE: If you tendered for work on Australian Government projects
before 1 November 2005 then the 2003 Implementation Guidelines apply, and the requirement for compliance on your privately funded jobs does not apply to those tenders. There are also specific model tender and contract clauses for directly funded projects and indirectly funded projects operating under the 2003 Implementation Guidelines.
You can obtain more information from the Department of Employment and Workplace Relations (DEWR) Code Hotline on
1300 731 293 – or email
building@dewr.gov.au How do the Code and Guidelines affect you?
Your responsibilities in relation to the Code will be different depending on your role on a project. Please contact the DEWR Code Hotline on 1300 731 293 for specific information about your responsibilities under the National Code and Implementation Guidelines.
Compliance with the Code and 2006 Guidelines is now a condition of tender. An undertaking to apply the Code, on the project and to private construction activity, must be included in the tender schedules submitted.
How can you be Code compliant?
In order to be Code compliant you must ensure that your workplace relations arrangements are consistent with the Code and 2006 Guidelines. The Code and 2006 Guidelines are designed to encourage a culture of 'best practice' in relation to workplace relations, while remaining consistent with the Building and Construction Industry Improvement Act 2005 (BCII Act) and the Workplace Relations Act 1996 (WR Act).
Code compliance is required through both a contractor’s workplace agreement or arrangements and the contractor’s workplace practices on building sites and construction projects.
Some of the main standards that are set by the Code follow:
1. Industrial Instruments, Workplace Agreements and Workplace Arrangements
- All parties must comply with applicable industrial instruments and legislative requirements.
- An industrial instrument must not place any restriction or limitation on the type of agreement.
- A party must not pressure or coerce another person to make, vary or extend an agreement.
- Head contractors and clients are prohibited from requiring or unduly influencing subcontractors to have particular workplace arrangements in place.
- A party must not require another party to agree to pay certain rates as a condition for the allocation of work or awarding a tender. The exception is where a project agreement has been agreed to by the client in accordance with the Code.
- Payments to industry superannuation, redundancy and sick leave funds in excess of award and legislative requirements are matters to be decided by each employer. No party can compel or unduly influence another party to make voluntary contributions above the provisions of awards, agreements or legislation.
2. Project Agreements
- Project wide workplace agreements can be made but are subject to very strict criteria, including improved construction schedules and performance benchmarks.
- Project agreements are not generally permitted on projects worth less than $25 million.
A project agreement must be certified and must not override a collective workplace agreement or AWA.
3. Freedom of Association
Practices that contravene freedom of association principles are inconsistent with the Code. Such practices include:
- providing the names of new staff to unions;
- supplying the names of contractors or subcontractors to unions;
- ‘no ticket no start” signs or other signage implying union membership is not a matter of choice;
- 'show card' days;
- the imposition, or attempted imposition of a requirement for any contractor to employ a non-working shop steward, or other person;
- pressuring subcontractors to join employer associations;
- using site delegates to undertake or administer site induction processes;
- induction forms requiring an employee to identify their union status;
- using forms requiring contractors to identify the union status of employees or subcontractors;
- a requirement for an employer to apply union logos to company supplied property, equipment or clothing;
- requirements for the payment of any ‘bargaining fee’ to a union; and union representation mandated in dispute settlement.
4. Right of Entry
Right of entry practices must comply with the Workplace Relations Act and applicable State OHS law.
5. Dispute Settlement
Dispute settlement at the enterprise level must be facilitated. Industrial action is not to take place while dispute settlement procedures are being followed. Employees must have a choice as to who can represent them.
6. Industrial Impacts
Any industrial or OHS dispute that can affect the construction program or project costs must be reported to the principal client at the earliest opportunity.
Any actual or threatened industrial action flowing from the implementation of the Code is to be reported by the relevant government agency to the Code Monitoring Group.
7. Workplace Reform
Arrangements must be conducive to workplace reform. Examples of provisions in agreements and arrangements that will not be Code and Guideline compliant include:
- prescribed ratios of employees;
- ‘one-in-all-in’ arrangements, eg in relation to overtime;
- ‘last on, first off’ clauses;
- restrictions on labour, such as provisions that require an employer to consult a union over the number, source, type or payment of labour;
- prohibiting all-in-payments; and
- negating the application of the Code and Guidelines.
A site allowance amount must be specified in an industrial instrument that is certified or registered. An unregistered agreement must not provide for a site allowance.
8. Strike pay is prohibited
Who enforces the Code?
Compliance systems must be in place to ensure the Code is being applied and that breaches and suspected breaches of the Code and legislation are reported to relevant authorities.
The ABCC and a Code Monitoring Group (CMG) play a dual role in ensuring compliance with the Code.
- The ABCC and the Code
The ABCC’s role is to enforce the Code. It has primary responsibility for undertaking audits of projects and conducting site visits. The ABCC will report the results of its investigations to the Code Monitoring Group (CMG).
The ABCC is available to provide advice at any time.
- The CMG and the Code
The CMG is a committee of senior officials from the following groups: Departments of Employment and Workplace Relations, Finance, Defence, Transport and Regional Services, Prime Minister and Cabinet, and the ABCC. Issues arising under the Code and Guidelines are dealt with by the CMG.
It has the power to:
(a) require contractors to demonstrate their compliance with the Code and Guidelines;
(b) require contractors to show cause as to why they should not be sanctioned for a breach of the Code and Guidelines;
(c) formally sanction contractors who breach the Code. This can range from formal warnings to preclusion from tendering for some or all Australian Government projects.
Sanctions applied under the Code and Guidelines
Sanctions can be imposed for breaches in the Code and Guidelines. Sanctions are recommended by the Code Monitoring Group (CMG) and can take the form of, a formal warning, or preclusion from, or reduction of, tending opportunities for Australian government work.
Information about sanctions that are imposed under the Code and Guidelines can be found on the Australian Government's Workplace website.
The Federal Safety Commissioner
The Australian Government Building and Construction OHS Accreditation Scheme operates such that only those construction companies that are accredited under the scheme are able to contract as head contractors for Australian Government construction projects with a value of $6 million or more.
The Federal Safety Commissioner (FSC) manages all aspects of the Scheme in accordance with the BCII Act, this includes any sanction regime established as part of the Scheme. The Scheme is not administered under, or a requirement of, the Code and Guidelines - rather, it is a part of the Australian Government’s commitment to being a model client for reform and best practice in the industry.
Further information about the FSC and the Accreditation Scheme can be obtained from the FSC website.
Other useful documents
- Model Tender and Contract Clauses for Government departments, agencies and CAC Act Bodies:
To help you meet your obligations under the Code and Industry Guidelines the government has produced Model Clauses to be included in your tender and contract documentation. You can choose from model clauses and self-assessment checklists for projects below:
- Model Tender and Contract Documentation for Government departments, agencies and CAC Act bodies (last updated 24 August 2007) [PDF 215Kb] [Word 167Kb]
This document replaces the previous model clause documentation titled 'Directly Funded Projects' [Word 84Kb] and 'Indirectly Funded Projects' [Word 102 Kb].
- Tender and Contract Documentation for Contractors:
Are you:
- a contractor, subcontractor, project manager, consultant or employee; and
- undertaking building and construction work for, and on behalf of, the Australian Government (directly funded) or on building and construction projects to which the Australian Government has contributed funding (indirectly funded)?
If the answer is yes, you must require compliance with the Code and Guidelines from all subcontractors and relevant material suppliers (see section 2.1 of the Guidelines) before doing any business with them - all contracts must specifically require the Code and Guidelines be complied with at the time of lodgement of an expression of interest or tender, or in the absence of an expression of interest or tender process, prior to entering into a contract.
The following model tender and contract clauses will assist parties to meet their obligations under the Code and Guidelines. These model clauses are for projects commenced on or after 1 November 2005.
The model tender and contract documentation applies to directly and indirectly funded projects and includes:
- Documentation: minor works and very small contracts ($25,000 or less), purchase orders and sundry orders
- Tender Documentation for work valued over $25,000
- Model clause: Tender Documentation
- Declaration of Compliance
- Model contract clauses: agreements with contractors
- Model Tender and Contract Documentation for Contractors (last updated Feburary 2008) [PDF 99Kb]
This document replaces the previous model clause documentation titled 'Directly Funded Projects' [Word 84Kb] and 'Indirectly Funded Projects' [Word 102 Kb].
Joint Australian Government and South Australian Government Implementation Guidelines for Austlink projects in South Australia (Joint Guidelines)
The Code and the Joint Guidelines apply to all construction projects in South Australia indirectly funded by the Australian Government through AustLink where:
- The value of Australian Government contribution to a project is at least $5 million and represents at least 50 per cent of the total construction value, or
- The Australian Government contribution to a project is $10 million or more, irrespective of the proportion of Australian Government funding.
Discontinuing the Industry Guidelines:
The Australian Government Implementation Guidelines for the National Code of Practice for the Construction Industry, revised in September 2005 and re-issued in June 2006 (the Implementation Guidelines) provides that from 1 November 2005, any party wishing to work on Australian Government funded construction projects will be required to comply with the National Code of Practice for the Construction Industry (the Code) and the Implementation Guidelines on all their construction projects. The Implementation Guidelines provide guidance for the construction industry and government agencies on how the Code is to be interpreted and implemented.
Given that the Implementation Guidelines replicate what is provided for in the Australian Government Industry Guidelines for the National Code of Practice for the Construction Industry, the Australian Government Industry Guidelines will no longer be issued. However, contracts and agreements for Australian Government construction projects operating under the Australian Government Industry Guidelines of 1998, 2003, and 2005 will continue to apply the relevant Guidelines provided for in those contracts and agreements.
All Industry participants tendering for, providing expressions of interest in, and/or undertaking work for construction activity that the Code and Guidelines apply to, must ensure that they refer to the Implementation Guidelines.
For assistance or advice, call the ABCC Hotline on 1800 003 338 or submit an online enquiry. For further information, call the DEWR Code Hotline on 1300 731 293 or email building@dewr.gov.au.