New Requirements for Federally Funded Contracts

There are new compliance requirements for companies wishing to win contracts for works that are funded in part from the Commonwealth Government. Executive Director ROGER BUCKLEY summarises these requirements.

AS part of the Commonwealth Government’s response to the Global Financial Crises, billions of dollars have been allocated to fund the construction of a whole raft of infrastructure developments under the Government’s Nation Building – Economic Stimulus Plan.

This is potentially good news for the Victorian extractive industry as demand for construction material to support these projects grows. However there are certain requirements companies have to meet to be considered to tender for these projects.

NATIONAL CODE OF PRACTICE FOR THE CONSTRUCTION INDUSTRY – using purchasing power to influence work place relations

As part of the Australian Government’s commitment to ensure work place relations are conducted according to the Fair Work Act 2009, new guidelines were released in August 2009 to assist potential suppliers of material for building and construction work undertaken for and on behalf of the Australian Government and to construction projects to which the Australian Government has contributed funding.

Businesses that wish to work on government funded projects are required to demonstrate compliance with the National Code of Practice for the Construction Industry and the August 2009 Implementation Guidelines. It is likely that if your company does supply generic road base materials for Federally funded projects, you will have to comply with the Code and Guidelines, even as a sub contractor.

The Code and Guidelines applied to all construction projects directly funded by the Australian Government. It also applies to construction projects indirectly funded through grants and other programs where:

• The value of the Australian Government contribution to a project is at least $5 million and represents at least 50 per cent of the total construction project value; or
• The Australian Government contribution to a project is at least $10 million, irrespective of the proportion of Australian Government funding.

Examples of indirectly funded building work include:

• road construction projects funded by the Australian Government
• a new school built by a state or territory government using funding provided by the Australian Government.

More details are available from the National Code Assessment Hotline on 1300 731 293, website of www.workplace.gov.au/building or email building@deewr.gov.au

BUILDING AND CONSTRUCTION OHS ACCREDITATION SCHEME – using purchasing power to influence improved health & safety

The Australian Government is working to improve OHS performance in the building and construction industry. The Building and Construction OHS Accreditation Scheme is one way that the Government is using its purchasing power to influence change.

The Scheme operates such that, subject to certain thresholds, only head contractors who are accredited under the Scheme can enter into contracts for building work that is funded directly or indirectly by the Australian Government.

The Scheme applies to projects that are directly funded by the Australian Government with a value of $3 million or more. For projects indirectly funded by the Australian Government, thresholds are similar to that described previously for the National Code of Practice for the Construction Industry.

Accreditation is not required for subcontractors engaged by a head contractor who carries out some of the construction work, or arranges for the construction work to be carried out. However the head contractor will need to comply with the requirements of their accreditation and ensure that there is an effective subcontractor OHS management system in place.

For further information contact the Federal Safety Commissioner Assist Line on 1800 652 500, visit the website at www.fsc.gov.au or email ofsc@deewr.gov.au

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