I am a Commonwealth Agency or authority

The Building and Construction Industry (Improving Productivity) Act 2016 (The Act) requires that the Commonwealth, or Commonwealth authorities, undertake appropriate measures to ensure that head contractors are accredited at the time of entering into a contract and throughout the duration of the building work.

What are my Responsibilities?

Directly Funded Projects

If your Australian Government agency or authority is directly funding building work valued at $4 million or more (GST inclusive)—that is you are entering into contracts with persons who will either carry out the building work, or arrange for building work to be carried out—you must ensure that an accredited builder is engaged as head contractor. A list of accredited companies is available on our website and updated regularly.

The OFSC has produced model clauses for incorporation into both tender documents and contracts.

Australian Government Agencies also have a number of reporting requirements under the Scheme, which are explained in detail on our Reporting for Government and Funding Recipients page. A key requirement is to inform the OFSC of Scheme projects.

Indirectly Funded Projects

If your Australian Government agency or authority is indirectly funding building work—that is providing funding to entities such as a state or territory government, local council or university, who will then contract with builders or entities that arrange for building work to be carried out—you must ensure that your funding agreement includes clauses requiring an accredited builder be engaged as head contractor. It is your responsibility to ensure that funding recipients are made aware of and adhere to this requirement.

The Scheme applies to indirectly funded building work where:

A head contract under the project includes building work of $4 million or more (GST inclusive) AND:

  • the value of the Australian Government contribution to the project is at least $6 million (including GST) and represents at least 50 per cents of the total construction project; OR
  • the Australian Government contribution to a porject is $10 million (including GST) or more, irrespective of the proportion of Australian Government funding.

The OFSC has produced model clauses for incorporation into funding agreement and grant documentation.

Australian Government Agencies also have a number of reporting requirements under the Scheme, which are explained in detail on our Reporting for Government and Funding Recipients page. A key requirement is to inform the OFSC of Scheme projects.

The Model Client

The Office of the Federal Safety Commissioner has developed The Model Client: Promoting Safe Construction, a framework for clients to integrate safety initiatives into the management of construction projects. The full Model Client framework is available on this website.

Further Information