Check your enterprise agreements are code compliant

15 February, 2017

The Federal Parliament passed new legislation which brings forward the operation of the Building Industry Code.

The Federal Government has made further amendments to the Building and Construction Industry (Improving Productivity) Act 2016, which was passed late last year re-establishing the ABCC and allowing for the establishment of a new building industry code.

The Government made a number of concessions to secure its passage through the Senate including delaying the operation of the code until 28 November 2018 for enterprise agreements made prior to 2 December 2016.

Since then the Government has had discussion with key senators and has introduced a new bill to reduce the transitional period to 31 August 2017, in line with its original intentions.

The bill also limits the exemption to building industry participants submitting expressions of interest and tendering for Commonwealth-funded building work.

This means enterprise agreements will need to comply with the code before contracts are awarded and work gets underway. 

However, for those businesses who have submitted an expression of interest or tendered for relevant building work from 2 December 2016 until the bill's commencement (being the day after it receives Royal Assent) they remain eligible to be awarded that building work until 28 November 2018.

This change has the greatest implication for businesses with agreements made before December last year that may not be code compliant. 

There remains some uncertainty as to what impact these amendments will have on existing projects and CCI is currently liaising with the relevant minister to provide clarity on this matter.

Think your business could be affected? Review your agreements against the new code and if you have any concerns contact us on (08) 9365 7660 or email advice@cciwa.com.