26 August 2016Reminder to contractors – enterprise agreement compliance

Building industry participants calling for tenders for Commonwealth funded building work need to consider whether the Building Code applies to the project. If the head contract with the government was advertised after 1 June 2016, new rules apply. Contractors must request an FWBC letter of compliance from all companies who are covered by an enterprise agreement made on or after 18 May 2016. If the company does not have an FWBC letter of compliance they cannot be awarded a contract. A letter of compliance is only required on Commonwealth-funded projects where expressions of interest or requests for tender for the head contract on the project were advertised by the government agency on or after 1 June 2016.

Awarding a contract to a contractor in these circumstances would be a breach of the Building Code 2013 by the party calling for the tender. 

Since commencing its assessment function FWBC has received more than 400 requests for enterprise agreement assessments. A number of registered agreements have now been assessed as not compliant. Therefore it is essential that building industry participants do their due diligence to ensure they do not award a contract to non-compliant company.

FWBC investigators regularly visit construction sites and carry out Building Code audits. Investigators will be checking to ensure that all companies engaged in building work on Commonwealth funded sites and who are covered by an enterprise agreement made on or after 18 May 2016 have the appropriate letter of compliance.

Requests for enterprise agreements assessments can be made on FWBC’s website.  Due to the large volume of assessments requested they typically take 4-6 weeks. Contractors are urged to submit their request for an assessment early to avoid being ineligible to tender while they are awaiting assessment of their enterprise agreement. 

Companies whose enterprise agreements are in the process of being assessed by FWBC may submit an EOI or tender for Commonwealth funded building work subject to them agreeing to provide an FWBC letter of compliance prior to being awarded a contract.

A letter of compliance is not required when tendering for building work on a privately funded project.

 

*The italicised sentence above was added on 11 October 2016 to provide further clarification to industry participants.

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