I'm an Australian Government agency procuring building work

Does the Scheme apply to my project?

The Australian Government Building and Construction WHS Accreditation Scheme (the Scheme) is established under the Fair Work (Building Industry) Act 2012 (the Act), and enabled by the Fair Work (Building Industry – Accreditation Scheme Regulations (the Regulations).

The Act and the Scheme Regulations place specific legislative obligations on Commonwealth agencies as clients of the building and construction industry. It is critical that staff involved in procurement processes understand these obligations and ensure procurement documentation reflects Scheme requirements. In particular, the Act requires that the Commonwealth agencies must not fund building work or enter into a contract for building work with an unaccreditied builder, where certain financial thresholds are met.

Building Work

A detailed description of what constitutes building work for the purposes of the Scheme is available in our Definition of Building Work fact sheet.

Thresholds

For directly funded building work—i.e. building work where the Commonwealth agency is the client— an accredited builder must be engaged for all building work directly funded by the Commonwealth with a contract value of $4 million or more (GST Inclusive).

For indirectly funded building work—i.e. building work where an Australian Government agency contributes funding to a third party recipient (such as a state government), through an Australian Government funding agreement, grant or other program—an accredited builder must be engaged where:

  • the value of the Australian Government contribution to the project is at least $6 million (GST inclusive) and represents at least 50 per cent of the total construction project value; or
  • the Australian Government contribution to a project is $10 million (GST Inclusive) or more, irrespective of the proportion of Australian Government funding; and
  • a head contract under the project includes building work of $4 million or more (GST Inclusive).

What are my responsibilities?

For further information on your specific responsibilities, please visit our I am a Commonwealth Agency or Authority page, I am a State or Territory Authority page, or My Funding Agreement Says I Need to Engage an Accredited Builder page depending on your circumstances.

Further Information