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Building Code Update

Contractor Sanctioned

The ABCC have released a statement an exclusion sanction has been imposed on Hutchinson Builders from submitting expressions of interest, tendering for or being awarded Commonwealth funded building work for a period of 3 months. These sanctions were imposed due to breaches of the Building Code 2013 including:

  • failing to require compliance with the Code from all subcontractors before doing business with them;

  • unduly influencing a subcontractor or supplier to have particular workplace arrangements in place;

  • not adopting policies that ensure that persons are free to become, or not become, members of industrial associations; and

  • allowing a 'no ticket, no start' sign to be displayed on a worksite.

In particular, the procurement of subcontractors to ensure Code compliance of the subcontractor’s industrial relations arrangements will be a critical term. Whilst the sanction on Hutchinson Builders specifically relates to the previous Building Code 2013, this is likely to set a precedent in respect of the implementation of the new 2016 Code.

Enterprise Agreement Compliance

There have been some surprising outcomes from the initial assessment of Enterprise Agreements. Enterprise Agreements that only offer full-time and casual employment or casual only employment have been deemed non-compliant with the Code. Companies with those agreements will be ineligible to be awarded Commonwealth funded work, irrespective of when the works were tendered, after 31 August 2017. A variation of agreements with these provisions should be made urgently. The ABCC have released a list of more than 500 enterprise agreement clauses which breach or potentially breach the Code. The ABCC has released this list to assist contractors prior to submitting agreements for assessment as to the compliancy status of their current and/or proposed enterprise agreements.

Workplace Relations Management Plans (WRMP)

The government requires a WRMP to be provided on Commonwealth funded works. The template WRMP is similar to those documents that have recently applied in Victoria, New South Wales and Queensland. There are however additional requirements in relation to drug and alcohol testing and security of payment. The development of a WRMP can be a reasonably administrative exercise that should be allowed for in the tender timeline.

Drayton’s Assistance

Drayton’s can assist with the following in relation to the Building Code:

  • Assessing Enterprise Agreements for compliance with the Code;

  • Development of WRMPs consistent with the Code requirements;

  • Training on understanding and implementing the Code; and

  • Auditing of contractor and sub-contractor practices to ensure Code compliance.

Should you require information regarding the Building Code and its requirements, please call our office for assistance on (07) 3831 7099 or email

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