Australia: Building and construction: are your clients required to comply with the Building Code 2016?
International clients considering incorporating entities in Australia to tender for building and construction work will need to consider their requirements to comply with the provisions of the Code for Tendering and Performance of Building Work 2016 (Building Code 2016).
The Building Code 2016 sets out the Australian Commonwealth Government’s requirements and expected standards of conduct for all building and construction industry entities that perform or tender for Commonwealth funded building work. There is no limit on the size of the entity to which the Building Code 2016 applies, with the provisions applying to small entities and large entities.
Importantly, the Building Code 2016 requires entities to have an enterprise bargaining agreement (EBA) approved by the Fair Work Commission in place prior to being eligible to be awarded or perform Commonwealth funded building work together with a workplace relations management plan and fitness for work, alcohol and drug management policies. The negotiation and approval of EBAs can be a lengthy and complex process.
Commonwealth funded building work is broadly defined and includes a variety of projects that are either performed directly for the Commonwealth or indirectly funded by the Commonwealth by a grant or other program.
Building work is also broadly defined and covers a range of activities relating to buildings, structures or works that form part of the land, including construction, alteration, extension, restoration, repair, demolition and dismantling. There are exemptions provided for certain types of works and projects relating to essential services.
Please contact our Workplace Relations Team if you require assistance with the requirements of the Building Code 2016.
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