A head contractor is the entity who manages or controls a building site. Their responsibilities including engaging subcontractors and ensuring that all Scheme requirements are met when they are contracted to undertake building work that meets the Scheme thresholds.
Directly funded building work is when an Australian Government agency has responsibility for the project funding and development.
Examples include a Defence facility, Medicare or Centrelink Office or a fit-out or refurbishment of existing Australian Government office accommodation.
If the value of the project is $4 million or more, the head contractor needs to be accredited under the Scheme.
Indirectly funded building work is when the Australian Government financially contributes to a project's total value through a funding agreement, grant or other program.
Examples include road construction projects jointly funded by a state government and the Australian Government, or a new school built by a state government using funding provided by the Australian Government for that purpose.
If a project is being indirectly funded by the Australian Government, the head contractor must be accredited under the Scheme if:
- The project includes building work of $4 million or more (including GST) AND
- the value of the Australian Government contribution to the project is at least $6 million (including GST) and represents at least 50 per cent of the total construction project;
- the Australian Government contribution to a project is $10 million (including GST) or more, irrespective of the proportion of Australian Government funding.
If these conditions are met, the head contractor will need to have OFSC accreditation.