The Code for the Tendering and Performance of Building Work 2016 (Building Code 2016) came into operation on 2 December 2016. The Building Code 2016 is the code of practice and sets out the Commonwealth Government’s expected standards for all building industry participants – both head- and subcontractors – who are (or seek to be) involved in any Commonwealth-funded building work.

Am I affected?

You become subject to the Building Code 2016 when you submit an expression of interest or tender for Commonwealth-funded building work. This makes you a “Code-covered entity”.

How does it affect me?

Once you submit a tender for a Commonwealth-funded project – whether as a head contractor or a subcontractor to a head contactor – you become a Code-covered entity and must comply with all requirements of the Building Code 2016.

This is not required if you submit a tender on a private project but once you tender for a Commonwealth-funded project, all your business’s practices must comply with the Code.

This will include:

  • Enterprise Agreements;
  • Security of Payment practices;
  • Freedom of association;
  • Managing drug and alcohol issues; and
  • For public project, the development of a work health and safety management plan.

A full list of your obligations is available here: Building Code 2016 obligations - Subcontractors and Building Code 2016 obligations – Head Contractors.

Businesses should first focus on ensuring their enterprise agreements are compliant. More information is available here: Enterprise agreements.

Failure to meet your obligations exposes you to being banned from future Commonwealth-funded projects for up to one year.