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2016 Building Code – What are your Obligations?


The 2016 Building Code, which came into effect on 2 December 2016, imposes a number obligations on a building industry participant who is looking to tender for or undertake Commonwealth-funded building Works.

The Code sets out the minimum standards of conduct for a Code Covered Entity (CCE) tendering for or undertaking such works.  Failing to comply with the 2016 Building Code can result in the CCE being excluded from tendering for works or being awarded building contracts due to non-compliance with their obligations for a period of up to 12 months.

A CCE should be aware of the following requirements, as specified in the 2016 Building Code:

On all Commonwealth funded building work:

  • Eligibility to tender requirements
  • Subcontractor compliance

On Commonwealth funded building work of a certain value:

On all building work where you are a covered by the Code:

  • Content of enterprise agreements
  • Obligation to report on actual or threatened industrial action and certain relation action
  • Security of payment
  • Standards of conduct on site
  • Freedom of association
  • Right of entry
  • Industrial action
  • Sham contracting
  • Compliance with laws
  • Unregistered written agreements and other agreements
  • Prohibited conduct
  • Collusive practices
  • Engagement of non-citizens and non-residents
  • Above entitlement payments
  • Dispute settlement
  • Fitness for work (alcohol or drugs)

For further information about the 2016 Building Code and your obligations as a CCE, click here to view the Australian Building and Construction Commission (ABCC) website.