As a subcontractor, once you become a Code-covered entity there are a number of obligations and general requirements you must meet in order to ensure compliance with the Building Code 2016.

Below is a summary of your obligations under the Building Code 2016. For a full description please download the Subcontractor Obligations under the Building Code 2016 here.

Compliance with laws decisions, directions and orders

You must comply with the Building and Construction Industry (Improving Productivity) Act 2016 and all designated building laws.  You must also comply with the Competition and Consumer Act 2010, work health and safety laws, and the Migration Act 1958.

Security of payment compliance

You are required to comply with all laws and requirements relating to security of payments and ensure due payments are paid in a timely manner and not unreasonably withheld.

Unregistered agreements

You are prohibited from making an agreement that deals with prohibited content listed under section 11.

Prohibited content of enterprise agreements

Download the fact sheet on Prohibited Clauses in Agreements here.

Sham contracting

The engagement of individuals to perform work under a contractor for services (i.e. as independent contractors) must not be used to disguise the true character of the engagement, being that of employment. 

Collusive practices

Contractors are prohibited from engaging in any collusive tendering practices in order to gain an unfair advantage.

Above-entitlements payments

You must not engage in conduct for the purpose of forcing contractors, subcontractors or consultants to make an above entitlements payment in respect of building work.

Engagement of non-citizens or non-residents

If you are planning on employing a person that is not an Australian citizen or Australian permanent resident (within the meaning of the Migration Act 1958) you must first take appropriate steps and be able to demonstrate that no Australian citizen or permanent resident was suitable for the job.

Protecting freedom of association

You must adopt and implement policies and practices that protect freedom of association in respect of building work.

Right of entry

You must comply with applicable right of entry laws and allow entry to building sites by officials of a building association only pursuant to a properly exercised right of entry.

Managing drug and alcohol issues in the workplace

There must be an approach to managing drug and alcohol issues in the workplace to help ensure that no person attending the site to perform building work does so under the influence of alcohol or drugs.  The implementation and cost of any drug and alcohol testing cannot be passed on to you by the head contractor.

Report and notification requirements

Breaches or suspected breaches to the building code: you must notify the ABCC of a breach, or a suspected breach, of the Code as soon as practicable.  This cannot be later than two working days after you have become aware of the breach.

Industrial action: you must as soon as practicable (no later than 24 hours) after becoming aware of the threat or action report to the ABCC any actual or threated protected or unprotected industrial action by your employees on either Commonwealth-funded building sites. You still have an obligation to report to the ABCC any unprotected industrial action on privately-funded building sites.

Secondary boycotts: if a direct or indirect request or demand is made by a building association for you to engage in conduct that appears to be for the purposes of secondary boycott you must report it to the ABCC as soon as practicable, but no later than 24 hours after becoming aware.