Key transitional arrangements applying to the Code for the Tendering and Performance of Building Work 2016 (Building Code 2016) came to an end on the 31 August 2017.
The Building Code 2016 contains detailed requirements regarding enterprise agreement content, site practices and other issues. Head contractors and sub-contractors that wish to carry out work on Commonwealth funded construction projects need to ensure compliance with the Building Code 2016 on Commonwealth funded building work, State Government funded building work and private funded building work.
From 1 September 2017, a business can only express interest in, tender for, or be awarded Commonwealth funded building work if:
- All enterprise agreements made by the employer and its related entities on or after 2 December 2016 (that apply to building work) comply with the Building Code 2016; and
- All enterprise agreements made between 25 April 2014 and 1 December 2016 by the employer and its related entities (that apply to building work) comply with the Building Code 2016 by 1 September 2016.
Enterprise Agreements made prior to 25 April 2014, which have not been varied, do not need to comply with the Building Code 2016.
Also, an enterprise agreement made before 2 December 2016 which only applies in respect of building work relating to a tender lodged by the building industry contractor or building industry participant before 2 December 2016 does not need to comply with the Building Code 2016.
Work tendered for a project prior to 2 December 2016 will most likely require compliance with the Building Code 2016 if:
- The tender was changed or re-priced after 2 December 2016; or
- There is a new tender for a new package of work on the project.
To tender for Commonwealth funded building work from 1 September 2017, building contractors and building industry participants that have enterprise agreements covering building work must demonstrate that their relevant industrial instruments are compliant with the Building Code 2016. Building contractors and building industry participants will need a Letter of Compliance from the Australian Building and Construction Commission (ABCC) for each of their enterprise agreements made on or after 25 April 2014.
If you would like assistance in applying the Building Code, please contact Ai Group’s Workplace Advice Service on 1300 55 66 77. Alternatively, please contact your local employment, workplace and industrial lawyer in Sydney, Newcastle, Wollongong, Melbourne or Brisbane or email Ai Group Workplace Lawyers at firstname.lastname@example.org.