Mandatory (but use of model clauses is optional)
|Legislation / Policy|
|Legislation / Policy contact|
The Code for Tendering and Performance of Building Work 2016 (the Building Code 2016) is issued under section 34 of the Building and Construction Industry (Improving Productivity) Act 2016.
It applies to ‘building work’ that is directly or indirectly funded by the Commonwealth and the building contractors and industry participants who tender for or enter into contracts for that work. These building contractors or building industry participants are referred to as “code covered entities”.
There are a range of requirements that apply during the procurement of Commonwealth funded building work and during the actual conduct of the works. To assist with ensuring compliance with these requirements, the Australian Building and Construction Commission (ABCC) has issued a range of guidance material, including model clauses for use in approach to market and contract documentation. This material is available on the ABCC’s website at https://www.abcc.gov.au/building-code.
In addition to the Building Code 2016 and the model clauses, there may be a range of other requirements that will apply to contracts involving ‘building work’ – for example, accreditation under the Work Health Safety Accreditation Scheme. Separate provisions will need to be included to address these issues if they apply.
The relevant Model Clauses to include in Contracts are available on the Australian Building and Construction Commission website can be accessed at this link https://www.abcc.gov.au/building-code/funding-entities.
While use of the contract Model Clauses is optional, it is necessary for all contracts relating to building work funded by the Commonwealth (directly or indirectly) to include clauses that meet all of the requirements of the Building Code 2016.
Standardisation of contractual text results in efficiencies for both Parties to a contract. Before deciding whether a particular clause is appropriate, procurement officials should carefully consider the context of their procurement.
Otherwise, where the model clauses are included, the clause wording should be used without change.
Terms that are capitalised may need to be changed to align with the Contract terminology.