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Industry welcomes new compliance measures for building code

"The Australian Industry Group (Ai Group) welcomes today's announcement by Fair Work Building and Construction Director Nigel Hadgkiss of new compliance measures for the Building Code 2013. The Building Code enables the Federal Government to use its purchasing power to ensure that the cost of roads, schools, hospitals and other vital community infrastructure is not inflated through unacceptable work practices and unproductive enterprise agreement provisions," Ai Group Chief Executive Innes Willox said today.

"Contractors wishing to carry out work on new Commonwealth Government projects must ensure that enterprise agreements that they make from 18 May 2016 are Code-compliant.

"The previous approach of deeming all enterprise agreements made under the Fair Work Act to be Code-compliant has rightly been discontinued. Some enterprise agreements made under the Act contain extremely unproductive provisions which inflate building costs and give unions far too much control over building sites.

"The maintenance of a strong construction industry Code was a key recommendation of the Cole Royal Commission into the Building and Construction Industry, the Gyles Royal Commission in New South Wales and the recent Productivity Commission inquiry into Public Infrastructure.

"Ultimately, a stronger Code needs to be implemented as provided for in the ABCC Bill, but in the meantime it is worthwhile for a more rigorous approach to be taken to enforcing the existing Building Code 2013," Mr Willox said.

Media Enquiries:  Tony Melville - 0419 190 347