14 September 2007
On 28 August 2007 the Federal Safety Commissioner released a guide enclosing model clauses to assist parties in the application of the Australian Government Building and Construction OHS Accreditation Scheme.
The Scheme commenced on 1 March 2006 and was established under the Building and Construction Industry Improvement Act 2005 (Cth) (BCII Act) and the Building and Construction Industry Improvement (Accreditation Scheme) Regulations 2005. This is an initiative of the Federal Government to improve occupational health and safety outcomes in the building and construction industry.
From 1 March 2006 only persons who are accredited under the Scheme have been able to contract for Australian building work[1] directly funded by the Federal Government where the contract is worth $6 million[2] or more. From 1 October 2007, as a consequence of amendments to the BCII Act coming into effect[3], the Scheme accreditation requirements will also apply to Australian building work indirectly funded by the Federal Government where the funding is:
The threshold for directly funded work will also reduce from $6 million to $3 million as a consequence of the amendments.
The model clauses will have particular use from 1 October 2007, when the changes to the BCII Act and Regulations are expected to take effect. The model clauses are a useful drafting aid and reference for Commonwealth funding recipients in preparing tender, contract or funding agreement documentation involving building work where the Scheme applies.
The guide separates the model clauses into various sections depending on which stage of the process is being considered (eg. approach to market stage, advertising stage, requests for expression of interest stage, request for tender stage and contract stage).
It is important to note that the model clauses are suggestions only and can be substituted for other clauses that are able to achieve the equivalent outcome of meeting the obligations imposed by the Scheme.
The model clauses and further information can be found at www.fsc.gov.au. Alternatively, please feel free to contact any of out team listed below for further help.
Also note that in a further development, on 12 September 2007, Federal Employment and Workplace Relations Minister, the Hon. Joe Hockey MP launched a new best practice guide aimed at steering the Australian construction industry towards best practice and improved safety performance. The Guide to Best Practice for Safer Construction includes six best practice safety principles and a leadership matrix promoting best practice tasks for each stage of a project. The guide can be found at www.construction-innovation.info.
[1] Building work is defined at section 5 of the BCII Act.
[2] This is to be reduced to $3 million on commencement of the amendments to the BCII Act on 1 October 2007.
[3] The Building and Construction Industry Improvement Amendment (OHS) Bill 2007 was passed in the House of Representatives on 11 September 2007. It is anticipated the Bill will be presented to the Senate on 13 September 2007 and come into effect on 1 October 2007.
