The requirements outlined in this Memorandum and the Guidelines apply to all general government sector agencies and public trading enterprises, including state owned corporations.

Introduction

The Government has adopted new industrial relations implementation guidelines for NSW Government procurement of construction services.

The Implementation Guidelines to the New South Wales Code of Practice for Procurement: Building and Construction 2013 (the ‘Guidelines’) deal with matters such as:

• protecting freedom of association laws,
• protecting independent contractors (including sub-contractors) from coercion,
• restrictions on over-award payments, unregistered workplace agreements and project agreements,
• ensuring that right of entry laws are applied properly on construction work sites, and
• arrangements for Workplace Relations Management Plans on larger projects.

Coverage and date of effect

The requirements of this Memorandum take effect immediately, while the Guidelines take effect from 1 July 2013 or earlier as necessary.

Required Action

Agencies, public trading enterprises, state owned corporations and principal contractors are responsible for ensuring the application of and compliance with these Guidelines by ensuring that:

• compliance with the Guidelines is included as an integral component of all contract management procedures, and
• all expressions of interest, tender and contractual documents clearly setting out the requirements specified in the Guidelines.

Relevant contractual documents must incorporate the requirement for the contractor, consultant and/or related entities (as applicable) to comply with all aspects of the NSW Code of Practice for Procurement (the ‘NSW Code’) and these Guidelines. This includes ensuring that principal contractors allow NSW Government authorised personnel to monitor and investigate compliance as above through relevant contractual documents. Model contract clauses are available at the NSWIR website: www.industrialrelations.nsw.gov.au . These model clauses may be updated from time to time to reflect changes in NSW Government contractual practice.

A specialist Construction Compliance Unit is established within NSW Industrial Relations (in NSW Treasury) to undertake auditing and inspection of workplace agreements and practices. The Unit reports to the client agency on its findings and in cases of non-compliance it will also recommend appropriate sanctions to the Treasurer and Minister for Industrial Relations.

Contractors and consultants undertaking work covered by the NSW Code and these Guidelines must notify the Construction Compliance Unit and the client of any alleged breaches of these Guidelines and of voluntary remedial action taken within 24 hours of becoming aware of the alleged breach.

The Construction Compliance Unit will also report suspected breaches of law to relevant enforcement bodies.

Further Information

A full copy of the Implementation Guidelines to the New South Wales Code of Practice for Procurement: Building and Construction is available here: www.industrialrelations.nsw.gov.au .

These Guidelines replace the Implementation Guidelines for the NSW Code of Practice and the Code of Tendering 1996.

Barry O'Farrell MP
Premier

This Memorandum does not supersede any other Memoranda.