TENDERING FOR COMMONWEALTH FUNDED PROJECTS – JULY 2009 IMPLEMENTATION GUIDELINES FOR CONSTRUCTION INDUSTRY

Newsletter Article - 21 August 2009

In July 2009, the Commonwealth Government released the revised Implementation Guidelines for the National Code of Practice for the Construction Industry (Guidelines) to reflect amendments to the workplace relations system made in the Fair Work Act 2009.

The revised Guidelines will apply from 1 August 2009 to all new construction projects:

• directly funded by the Commonwealth Government; and
• indirectly funded by the Commonwealth Government through grants or other programs where:

1. the Commonwealth Government contribution is at least $5 million and represents at least 50% of the total construction value; or
2. the Commonwealth Government contribution is at least $10 million.

A contractor wishing to be considered for Commonwealth Government construction work must comply with the revised Guidelines on all of their other construction projects, which extends through to subcontractor and consultancy work.

The Guidelines

In summary the Guidelines:

• state that unregistered written agreements between an employer and employees are inconsistent with the Guidelines;
• prohibit any party requiring or attempting to unduly influence subcontractors or suppliers to have particular workplace arrangements in place;
• prohibit coercion or pressure being applied by a contractor, subcontractor or consultant to make over-award payments;
• require the adoption of policies which preserves freedom of association;
• require strict compliance with legislation, industrial instruments, and court and tribunal orders regarding right of entry;
• require the head contractor to report significant disputes or disagreements in relation to workplace relations or occupational health and safety to the project principal; and
• require the head contractor to establish a comprehensive site specific occupational health and safety management plan before work commences.

Implications in tendering for future Commonwealth funded construction projects

From 1 August 2009, tenderers to Commonwealth projects and Commonwealth funded projects, including many projects under the Commonwealth economic stimulus package, must comply with the revised Guidelines from the date of tender submission.

By Ben Yeoh and Terry Grace. 

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