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Code Compliance of Enterprise Agreements – Urgent

What you need to know

The Australian Building and Construction Commission (ABCC) and the New Code of Practice for the Construction Industry (Code for the Tendering and Performance of Building Work 2016) is now in place and applies to Commonwealth-funded work tendered after 2 December 2016. In order to be eligible to win Commonwealth-funded works, companies need to be Code Compliant with the new 2016 Code on all of their works, both public and private from 2 December 2016.

The initial legislation was provided for a transition period of 2 years for agreements made before 2 December 2016. This has now been amended to reduce the phase-in period for the Code from two years to nine months, concluding in August 2017. The prudent move is to start a process to amend these agreements in the short term.

Agreements made pre 2 December 2016

In respect of pre 2 December agreements, there is still a requirement to receive ABCC compliance assessment in respect of the 2016 Code. In the interim, an individual declaration can be made. This assessment is mandatory for eligibility to tender for Commonwealth-funded works.

Agreements made on or after 2 December 2016

Please note that ALL contractors wishing to undertake Commonwealth-funded building work will require a letter of compliance with the Building Code 2016. The letter of compliance will confirm the entity’s eligibility to tender, regardless of their workplace arrangements. This also includes companies working under a Modern Award or other lawful workplace arrangement.

Drayton’s can assist with the following:

  • Applying Code assessment of your industrial instrument to enable you to successfully tender on these works.

  • Reviewing Enterprise Agreements made prior to 2 December 2016, and assisting with the variation of agreements to receive compliance to successfully tender on Commonwealth-funded works.

  • Assist with all aspects of understanding and implementing the Code including training and auditing of contractor and sub-contractor practices to ensure Code compliance.

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