What is a funding recipient?

A ‘funding recipient’ refers to any entity to which the Commonwealth provides funding or assistance for building work that is covered by the Code.

Generally, a funding recipient is a state or territory government.

Funding recipients may be contractually obliged through their funding agreement with the Commonwealth to ensure that several aspects of the Code are applied when procuring Commonwealth funded building work.

Funding recipient - procuring and funding building projects summary

Do I have responsibilities?

The Code for the Tendering and Performance of Building Work 2016 (Code) applies to building work when a funding recipient receives at least $10 million, or $5 million (which is at least 50% of the project’s value) in Commonwealth funding.

Funding recipients may be contractually obliged through their funding agreement with the Commonwealth to ensure that several aspects of the Code are applied when procuring Commonwealth funded building work.

On 26 July 2022, the Code was amended by the Code for the Tendering and Performance of Building Work Amendment Instrument 2022 (the Amendment Instrument).

For funding entities, the only remaining requirements of the Code are sections 25A and 26(8) of the Code.  

Please see a below explanation for how these sections impact funding recipients.

Section 25A:

As part of funding agreements, funding entities may contractually require the funding recipients to meet the requirements of section 25A on their behalf.

To fulfil the requirements of section 25A on behalf of funding entities, funding recipients may wish to ask the tenderers to complete a table similar to the one below as part of the tender and/or EOI process:

To what extent does the Tenderer intend to use domestically sourced and manufactured building materials to undertake the building work? Details:
Do the building materials to be used to undertake the building work comply with relevant Australian standards published by, or on behalf of, Standards Australia? Details:
What is the Tenderer’s assessment of the whole-of-life costs of the project to which the building work relates? Details:
What does the Tenderer consider the impact on jobs will be of the project to which the building work relates? Details:
Does the Tenderer consider that the project to which the building work relates will contribute to skills growth? Yes/No

Please note that this wording is a suggestion only and is not meant to be prescriptive.  

Section 26(8)

Whilst it is a matter for funding entities in deciding how to best fulfil the requirements of section 26(8), funding entities may wish to:

  • include the following requirement as part of the tender and/or EOI process:
    • Respondents/Tenderers will only use products in relation to the building works that comply with the relevant Australian standards published by, or on behalf of, Standards Australia;
  • include words to the following effect in their contract with a contractor:
    • The contractor must only use products in building work that comply with the relevant Australian standards published by, or on behalf, Standards Australia.
    • The contractor must ensure that any agreement entered into in relation to the building works with a subcontractor requires the subcontractor to only use products in relation to the building works that comply with the relevant Australian standards published by, or on behalf of, Standards Australia

What about WRMPs?

The Code no longer contains any requirements in relation to Workplace Relations Management Plans (WRMPs). For this reason, the ABCC will no longer assess WRMPs. The ABCC will not be accepting new WRMPs submissions and any WRMPs previously submitted will not be assessed.

Need more information?

You may contact us directly for more information or advice about your individual circumstances:

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