Code and Guidelines for Government agencies
The information below is designed to assist government agencies that undertake construction activity as a client of the building and construction industry.
The
National Code of Practice for the Construction Industry (the Code) is the standard of practice for building and construction work for Government funded projects.
The Code and Australian Government Implementation Guidelines for the National Code of Practice for the Construction Industry (the Guidelines) set out the responsibilities of all parties on construction projects funded by the Australian Government. The Guidelines outline the process for complying with the Code. The Guidelines were developed to assist the government and interested parties to interpret and implement the Code.
The Code and Guidelines aim to:
- establish higher standards of workplace relations behaviour
- provide greater flexibility and productivity.
They ensure the building and construction industry:
- is client focussed
- has relationships built on trust
- observes ethical principles in tendering
- is committed to continuous improvements and development of best practice.
- You may download copies of the Code and Guidelines from the Publications page
- For hard copies email building@deewr.gov.au or call the National Code hotline on 1300 731 293.
The Code and Guidelines apply to:
- all Australian Government Departments, Agencies and CAC Act bodies funding building and construction projects
- all companies/ contractors working on these projects (including subcontractors, consultants, project managers and sole traders)
- suppliers and manufacturers of materials integral to these projects
- all related entities undertaking Australian Government funded building and construction activities (to any of the parties listed above).
The Code and Guidelines apply to:
- Directly funded Australian Government projects, which means:
- any construction activity undertaken by or on behalf of Australian Government agencies including the refurbishment and maintenance of offices and fit-outs.
- Indirectly funded government projects which means all construction projects indirectly funded by the Australian Government through grant or other programmes where:
- the Australian Government funding contribution is at least $5 million and represents at least 50% of the total construction value
- the Australian Government contribution to the project is $10 million or more irrespective of the proportion of Australian Government funding.
- Privately funded projects (from 1 November 2005).
- More information on privately funded works is available on the ABCC website.
The Code and Guidelines apply to all directly and indirectly funded building and construction activities in Australia undertaken by Australian Government agencies and funding recipients including:
- building refurbishment or fit out, installation of building security systems, fire protection systems, air conditioning systems, computer and communication cabling, and building and construction of landscapes (section 2.1 of the Guidelines refers).
- all organised activities concerned with demolition, building, landscaping, maintenance, civil engineering, process engineering, mining (excluding mining operations) and heavy engineering.
- The Code and Guidelines do not cover the ongoing maintenance (such as wear and tear) of building systems, including the maintenance of fire protection and air conditioning systems, maintenance of computers and communication cabling, landscaping (such as lawn mowing, pruning and other horticultural activities), and cleaning buildings.
Most building and construction activities undertaken by Australian Government agencies will need to comply with the current version of the Guidelines (PDF 253KB) (blue cover). However, if the funding or formal arrangement was entered into before November 2005 then the previous version of the Guidelines (PDF 263KB)(orange cover) will normally apply.
For copies of the model tender and contract documentation go to the publications page. Government agencies should use these clauses when preparing expressions of interest, tenders and contracts, and funding agreements for building and construction projects funded directly or indirectly by the Australian Government.
The model contract clauses require contractors to:
- undertake to comply with the Code and Guidelines and ensure all related entities engaged in Australian construction activity comply with the Code and Guidelines
- ensure that subcontractors', consultants' and material suppliers' workplace arrangements comply with the Code and Guidelines before engaging them on the project
- continue to ensure that all contracts on the project include the requirement to comply with the Code and Guidelines
- agree to allow the ABCC to monitor Code compliance on the site and to investigate any breaches of the Code and Guidelines
- acknowledge that the Commonwealth may impose a sanction should contractors not comply with the Code and Guidelines
- agree to comply with the Code and Guidelines on new privately funded construction projects.
Only companies and contractors (including head contractors, project managers, consultants and material suppliers) who are Code compliant can tender to undertake building and construction activities on Australian Government funded projects.
Compliance with the Code and Guidelines means that:
- the workplace arrangements used by the contractor comply with the Code and Guidelines
- workplace arrangements include industrial instruments (for example, awards, collective and individual workplace agreements), unregistered agreements, common law contracts on-site practices and behaviours.
- the on-site behaviours of the contractor are consistent with the Code and Guidelines (section 8 of the Guidelines refers). Briefly, these:
- require the contractor to comply with the provisions of workplace agreements and to meet their obligations under law to Occupational Health and Safety
- prohibit the contractor attempting to unduly influence subcontractors to have particular workplace arrangements or to make over-award payments
- require the contractor to adopt arrangements which ensure freedom of choice and freedom of association - the choice of employees to be or not be in a union
- require the contractor to comply with the procedures for right of entry under the Workplace Relations Act 1996
The Checklist for Government Agencies (PDF 185KB) will assist Australian Government agencies meet their requirements under the Code and Guidelines, including once the project commences.
For further information on code compliance contact: