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OFSC > Do I need to engage an accredited builder? > My funding agreement says I need to engage an accredited builder

My funding agreement says I need to engage an accredited builder

As a funding recipient you may be required to engage an accredited builder.

Under the Building and Construction Industry Improvement Act (2005), Australian Government agencies can only fund ‘building work’ when; subject to thresholds, an accredited builder is engaged.

If an Australian Government agency has provided you with funding for building work, your funding agreement should include a clause requiring that contracts for building work are entered into with builders accredited under the Scheme.

The Australian Government will be unable to make funds available to you should an unaccredited builder be engaged. Subcontractors, project managers not undertaking building work, architects, designers and other parties not undertaking building work do not require accreditation.

Financial thresholds

You will need to engage an accredited builder if the contract under which building work is undertaken is worth at least $3 million (GST inclusive). The Scheme applies to projects that are indirectly funded by the Australian Government where:

  • the value of the Australian Government contribution to the project is at least $5 million and represents at least 50 per cent of the total construction project value; or
  • the Australian Government contribution to a project is $10 million or more, irrespective of the proportion of Australian Government funding.

How will I know whether a builder is accredited under the Scheme?

A list of accredited builders is available on the Accreditation Register. The builder will also hold a Certificate of Accreditation and this is acceptable proof of accreditation.

You should ensure that the name and ACN of the company contracting for building work is the same entity listed on the FSC website or the Certificate of Accreditation.

Engaging an accredited builder

Your tender documentation and contracts for building work must state that the Scheme applies to the project, and that you require the builder to be accredited under the Scheme in order to perform the work.

The OFSC provides Model Clauses for use by funding recipients for these purposes.