The Victorian Code of Practice for the Building and Construction Industry 2014 (the Victorian Code) came into force on 8 October 2014 and applies to all entities tendering for, or undertaking, Victorian Government building and construction work.
The Victorian Code describes the minimum standards of practice and behaviour expected by the Victorian Government and requires all contractors covered by the Victorian Code to ensure that all workplace conduct (including all agreements, arrangements, practices or procedures) are compliant with the Victorian Code.
Failure to comply
The Victorian Code introduces some potentially onerous consequences for non-compliance with its standards.
Under the new enforcement framework, contractors who have been found to have breached the Victorian Code can be excluded from tendering for public building and construction work. Such exclusions can apply at an agency or government-wide level and can apply to government work above a certain value or for a specified period.
The Victorian Code also provides that a Victorian Government department or public sector body must not shortlist a participant during an expression of interest process or enter into a contract with any participant that has been excluded from tendering for government work because of a breach of the Code.
Implications
We have already seen contractors have the sanction of exclusion from tendering imposed upon them for a failure to comply with the Implementation Guidelines (which covered the implementation period for the Victorian Code) in relation to arrangements with unions.
It is expected that a similarly hard-line approach will be taken by the Construction Code Compliance Unit now that the Victorian Code is in place.
Given this potential consequence, it is important that a contractor ensures that all agreements, arrangements, practices or procedures which it enters into are compliant with the Victoria Code.
For assistance and further information on how to meet your obligations under the Code please contact a member of our construction team below and view our practice webpage here.
This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.
