Important new requirements came into operation under the Code for the Tendering and Performance of Building Work 2016 (Building Code 2016) on 1 September 2017.

From 1 September 2017, building industry participants are only able to express interest in, tender for, or be awarded Commonwealth funded building work if:

• All enterprise agreements made by the employer and its related entities on or after 2 December 2016 (that apply to building work) comply with the Building Code 2016; and
• All enterprise agreements made between 25 April 2014 and 1 December 2016 by the employer and its related entities (that apply to building work) comply with the Building Code 2016 by 1 September 2016.

Enterprise Agreements made prior to 25 April 2014, which have not been varied, do not need to comply with the Building Code 2016.

The Building Code 2016 contains detailed requirements regarding enterprise agreement content, site practices and other issues. Head contractors and sub-contractors that wish to carry out work on Commonwealth funded construction projects need to ensure compliance with the Building Code 2016 on Commonwealth funded building work, State Government funded building work and private funded building work.

Despite the unreasonable actions of the construction unions in trying to frustrate the implementation of the Building Code, companies have got on with the job of achieving Code-compliance. Some companies have entered into Code-compliant agreements from the start. Other companies have reached agreement with their employees on variations to agreements that simply remove the clauses that are not Code-compliant. Other companies have agreed to some changes to remuneration as part of a package of amendments to agreements to achieve Code-compliance.

If you would like more information about the Building Code, please contact Ai Group’s Workplace Advice Service on 1300 55 66 77.

If you would like assistance in drafting Building Code compliant enterprise agreements, please contact your local employment, workplace and industrial lawyer in Sydney, Newcastle, Wollongong, Melbourne or Brisbane or email Ai Group Workplace Lawyers at info@aigroupworkplacelawyers.com.au.