National Code of Practice for the construction industry and implementation guidelines

The Rudd Government has just announced that it will issue an amended National Code of Practice for the Construction Industry and Implementation Guidelines (the New Code and Guidelines) to operate from 1 July 2009.

The Rudd Government has been conspicuously silent on the future of the current Code and Guidelines since its election. While there is an abundance of focus on the ABCC and the BCII Act, it is in fact the current Code and Guidelines which have forced builders to undertake wholesale reviews of their on site IR practices.

For example, as the current Code required contractors to comply with the guidelines on privately funded projects from November 2005, code compliant behaviour has become the norm and with this a trickle down effect has ensured sub-contractors are complying with its provisions as well. The biggest impact is likely to be in respect of Right of Entry procedures. While the Right of Entry procedures in the Fair Work Act 2009 are not significantly different to those currently in the Workplace Relations Act 1996, the fact that the current Code and the Guidelines require the provisions to be enforced, has been the subject of much debate and disputation in the industry throughout the last couple of years. If this requirement is removed, industry employers will need to make a policy decision as to whether they require union officials to comply with the legislation going forward.

The New Code and Guidelines may also herald a different approach to managing government construction projects. Project agreements were unheard of under the Howard government for projects covered by the current Code, but it is not beyond the realms of possibility that they may be returned. It is interesting to note that President Obama recently changed the US government procurement guidelines to allow “labour” agreements on construction projects which was previously outlawed by the Bush administration.

It remains to be seen what the Government will do in relation to this controversial aspect of the current Code and Guidelines. Thus far, there has been no indication from Government as to the content of the amendments. We will keep you updated of the changes, together with the likely impact on businesses as soon as it is released.