The Australian Constructors Association (ACA) has welcomed the Federal Government’s commitment that new workplace reforms will not apply to construction contracts, calling for this position to be clearly reflected in legislation.
The government has indicated the Workplace Relations Legislation Amendment Bill will not extend preferential procurement arrangements to construction, acknowledging the sector’s scale, complexity and past risks.
ACA CEO Peter Colacino said that commitment was important, but it needed to be put beyond doubt.
“The government has stated that construction is not intended to be captured by these provisions, and that is the right call,” he said.
“While government statements are encouraging signs in the approach being taken, these commitments do not bind future governments, which is why it is important the legislation provides certainty.
“Given the size of public investment in this sector that position needs to be explicitly written into the legislation so there is certainty for clients, contractors and the market and to avoid any return to the kinds of behaviours that have previously undermined confidence in the construction sector.”
Construction represents one of the largest areas of public procurement in Australia, with tens of billions of dollars invested annually in infrastructure, housing and essential services. Even small shifts in procurement settings can have significant consequences for cost, competition and delivery.
“Experience at the state level had shown how procurement frameworks could lead to unintended outcomes if not carefully designed,” Peter said.
“At a time when governments are relying on the industry to deliver more housing and infrastructure, the focus has to stay on productivity, capability and getting projects built.
“Embedding a clear legislative carve-out for construction would provide confidence the Commonwealth’s procurement settings will remain stable, transparent and focused on delivery.”
