March 2019 / Building Code Compliance

Building Code 2016 requires that any builder or subcontractor who wishes to tender for Government projects is not covered by an Enterprise Agreement that contains certain non-permitted clauses.

Hutchies currently has Code 2016 compliant agreements in Tasmania, Victoria and New South Wales. The process to have a Code 2016 compliant agreement registered in Queensland / Northern Territory is well under way, however, as it is not yet complete we are currently not permitted to submit expressions of interest or tender for federally funded projects nationally. If you are considering a project which may have federal funding attached to it, please contact Ben Young to discuss.

Building Code 2016 requires that builders covered by the Code only allow Union Officials access to site in accordance with the Fair Work Act or Workplace Health and Safety legislation, however, in Queensland and Northern Territory, Hutchies’ current Enterprise Agreement includes a ‘Standing Invitation’ clause (cl 32.4) which means that until Hutchies’ Queensland / Northern Territory Agreement is varied to be Code 2016 compliant CFMEU Officials (including those without permits) are able to visit any project in Queensland and Northern Territory to meet with a member of the Hutchies’ Team.

Teams with projects in other States should follow the guidelines in the applicable Hutchies’ Site Management Industrial Relations Guide. If you are unsure of how to manage Right of Entry on your project, or if you are faced with a circumstance where there may be a breach of Right of Entry requirements, please contact Ben Young on 0400 577 953.

An area of the Code that has become a focus for the ABCC is the issue of paraphernalia.

Hutchies’ position with respect to paraphernalia is very clear. Site Managers are to ensure that no paraphernalia on the project implies that membership of a Union is anything other than a personal choice. An example of a non-permitted sign is one that reads: ‘No Ticket – No Start’. The Hutchies’ Site Management Industrial Relations Guides outline a procedure for removing posters that breach the Building Code and everyone is encouraged to re-familiarise themselves with that procedure.

To ensure paraphernalia does not breach freedom of association, Hutchies’ policy on sites where Union paraphernalia is present is to provide a balanced approach with Hutchies posters and flags around the project placed in alongside union paraphernalia. Each site must monitor the volume and type of paraphernalia on Hutchies’ projects by conducting twice daily inspections. If you require additional Hutchies’ posters or flags, please contact Sammy Fisher. Note: when rationalising the volume and type of Union paraphernalia on site, please be sensible regarding how the materials are dealt with. The sensible and respectful thing to do would be to remove those posters that are inappropriate and could be classified as breaches of the Building Code, and retain in your office and provide them back to the Delegate at the earliest opportunity. The Delegate will understand that Hutchies must comply with the requirements of the Building Code and the volume and / or type of posters displayed were not in accordance with those requirements.

Ensure the Building Code and specifically Freedom of Association is covered in the induction using the standardised script which can be found on the Document Library

Ensure Delegates do not carry out inductions

Ensure all induction records are secured in a lockable cabinet immediately following the induction Ensure Hutchies’ Freedom of Association poster is displayed in the induction room. The poster is available on the Document Library

If you or your team feel they need specific training on any aspect of the Building Code, please contact Ben Young to make the necessary arrangements.

Subcontract agreements

Remember to always use the updated subcontract agreements from Hutchies’ Document Library.

Non-citizens

The Code has specific requirements for builders or subbies wishing to engage non Australian citizens – if you are considering a new recruit that is not an Australian citizen and on any kind of visa, please contact Ben Young to discuss.

Delegates

Projects with Delegates are reminded that the Code requires Delegates to have a role outside of their delegate responsibilities – please contact Ben Young if you need to discuss.

Security of Payments 

Earlier this year we ran training nationally with respect to Hutchies’ obligation to report disputed or delayed payments to the ABCC. It is essential that everyone is processing claims and invoices regularly to ensure all payments are either paid by the due date or dealt with strictly in accordance with Security of Payments laws.  

Reporting of Stop work events

Hutchies has a requirement to report any industrial action on our projects. That is any stoppage that is not authorised or related to a legitimate concern for Health and Safety. If you have works stop on your project, please call Ben Young on 0400 577 953 on the day of the stoppage to discuss whether the stoppage is classified as industrial action. It is standard Hutchies’ practice to speak with Ben Young prior to submitting a report.

Sham Contracting

It is a breach of the Building Code and the Fair Work Act to engage in ‘Sham Contracting’.

A sham contracting arrangement is when an employer attempts to disguise an employment relationship as an independent contracting arrangement.

The ABCC website provides some guidance with respect to whether a worker is classified employee or an independent contractor. https://www.abcc.gov.au/resources/fact-sheets/independent-contractors/how-determine-if-worker-employee-or-independent-contractor Teams must be taking all reasonable steps to ensure subbies are not engaging in Sham Contracting arrangements on our projects.

ABCC Inspections 

Hutchies continues to receive around two unannounced inspections / site visits per week from ABCC inspectors. During these visits inspectors typically request various documents for inspection and often ask for copies of these documents. Under Section 74 of the Building and Construction Industry (Improving Productivity) Act 2016, ABCC Investigators have authority to enter Hutchies’ sites and to inspect and make copies of documents while on site. In order for us to keep a record of the exchange of documents please make a second copy of any documents provided to inspectors and send them to the Code Compliance Team along with a summary of what was discussed during the visit. In instances where Hutchies’ people are being asked to provide a statement, please contact Ben Young so that appropriate arrangements can be made to have a support person present.