The Government has approved the attached new Code of Practice for the Construction Industry.

The development of the new Code was required to align it with the Government's Industrial Relations policy. This was carried out by the Construction Policy Steering Committee (CPSC) in consultation with industry parties.

The Code establishes and codifies principles and standards of behaviour which must be observed by any contractor, subcontractor, consultant and supplier wishing to do. business with the Government or work on projects to which the Code applies including' those with private sector funding.

The outcomes through achievement of the objectives in the Code are reduced costs' and a substantial increase in the value obtained from the State's capital investment Ibis should provide scope for additional facilities such as schools, hospitals and transport infrastructure.

The attainment of the objectives is to be met by applying the reforms on a whole of Government basis, increased consistency in the application of policies and procedures across the public sector, and, the marshalling of the Government's purchasing power to encourage reform.

The Code of Practice should enhance the State's economic strength, achieve maximum value for its $6 billion annual expenditure within the Construction Industry and maintain and extend the productivity gains.

It should be noted that, the current Code of Practice, issued October 1992, will continue to operate on existing projects and new projects for which tenders are called prior to 1 July, 1996.

The new Code of Practice is to apply to all contracts and projects for which tenders are invited on or after 1 July, 1996. There is to be no retrospective application of the new Code.

The CPSC will monitor the introduction of the new Code to ensure compliance and will also issue guidelines to assist in implementing the new Code of Practice and attendant .new 'Code of Tendering. Supplies of the Codes and Implementation Guidelines will be made available directly to all agencies and briefings will be conducted for Government agencies and industry.

I request that Ministers ensure that all agencies under their administration apply the new Codes on all building, construction, maintenance and material supply contracts, consultant commissions and Government funded projects and sites, within their portfolios, in respect of which tenders are invited on or after 1 July, 1996. This includes projects involving the private sector participation in the provision of the State's assets, for example by way of Build/Own/Operate (BOO) schemes and similar arrangements.

In this regard, the CPSC has prepared a notification for inclusion in all tender documents, which has been included in the Implementation Guidelines to the Codes. Additional copies can be obtained from the Executive Director at the CPSC Secretariat, Level 23 McKell Building, 2-24 Rawson Place, Sydney NSW 2000, phone: (02) 372 8885 fax: (02) 372 8822, email: [email protected].

Any enquires concerning the new Codes should be referred by the agency to its CPSC representative, or where one is not available, directly to the CPSC Secretariat at the address given above.

Bob Carr
Premier