My funding agreement says I need to engage an accredited builder

If your state or territory government agency, university, local council, sporting organisation, hospital, etc., is undertaking a project involving building work that has received funding from the Commonwealth through an Australian Government funding agreement, grant or other program, you may see a clause requiring that contracts for building work are entered into with builders accredited under the Scheme. If this is the case, you must ensure that you engage an accredited head contractor. A list of accredited companies is available on our website and updated regularly.

The Scheme applies to indirectly funded building work 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).

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

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

As a recipient of Australian Government funding, you 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 when contracts are signed for 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 our website.

Further Information