Make sure you’re eligible to tender
In February 2017, the Australian Building and Construction Commission (ABCC) released a final version of their 2016 Code for the Tendering and Performance of Building Work, including amendments made since the Code was introduced on 2 December 2016. All building contractors must comply with the code when they submit an expression of interest (EOI) or tender for Commonwealth-funded building works.
Compliance required by 31 August 2017
To be eligible to submit and be awarded a tender for Commonwealth-funded projects, your enterprise agreement will have to comply with all requirements of the Code. The recent amendments have reduced the transition period for this process from two years to nine months.
If current enterprise agreements are not compliant, you have until 31 August 2017 to make the necessary changes. During this time, companies with non-code compliant agreements can tender for, but not be awarded, taxpayer-funded projects. If you’ve made a non-compliant agreement since 2 December 2016, your company will not be eligible to express interest in, tender for, or be awarded Commonwealth funded building work as long as you are covered by that agreement.
What is the criteria for compliance?
The Building Code’s requirements for code-covered entities and enterprise agreements include the following areas:
- Workplace Relations Management Plan (WRMP) compliance
- Eligibility requirements for engaging contractors on Commonwealth funded building work
- Compliance with certain laws, including designed building laws, WHS laws, Competition and Consumer Act and Migration Act
- Security of payment compliance, including specific Building Code requirements
- Unregistered agreements
- Prohibited content for enterprise agreements made since 2 December 2016
- Sham contracting
- Collusive tendering practices
- Above-entitlement payments
- Labour market testing
- Protecting freedom of association
- Right of entry
- Reporting and notification requirements
- Managing drug and alcohol issues in the workplace
The Building Code also places obligations on funding entities during the procurement and conduct of Commonwealth-funded building work, including:
- Workplace Relations Management Plan (WRMP) approval by the ABCC
- Eligibility requirements for engaging contractors on Commonwealth funded building work
- Obtaining information from tender respondents/preferred tenderers such as commitment to training and skill development, numbers of apprentices, trainees and visa holders, prior breaches of certain laws or unsatisfied judgment debts, the extent of domestically sourced and Australian standard building materials, assessment of whole-of-life project costs, project’s impact on jobs and contribution to skills growth
- Only engaging a code-covered entity that using products that comply with Australian standards
If you have questions or concerns about compliance with the 2016 Code for the Tendering and Performance of Building Work, you can contact the ABCC on 1800 003 338 or enquiry@abcc.gov.au.
Sources:
- https://www.abcc.gov.au/building-code/building-code-2016
- https://www.abcc.gov.au/building-code/letters-compliance-and-preliminary-advice-agreement-content/application-code-amendments-enterprise-agreement-content
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