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Feedback Sought on Draft Voluntary Code for Contractors dealing with Sub-contractors - Circular 49.6

To Chief Executive Officer
Governance Officers
Planning - Building Staff
Policy and Strategic Planning Staff
Procurement Staff
Date 7 December 2017
Contact Andrea Malone
Email: andrea.malone@lga.sa.gov.au
Response Required No Respond By 31 December 2017
Summary Feedback is sought by the Small Business Commissioner on a draft Voluntary Code covering prime contractors' dealings with subcontractors on SA Government Building and Construction Projects to be introduced into the current Industry Participation Policy tender assessment framework.

In May 2017, the South Australian Government approved a proposal for the Small Business Commissioner and the Industry Advocate to develop a "Good Behaviour Test" to be applied by the Government  as part  of  assessing tenders for goods and services in the building and construction sector. This followed feedback from industry in response to a consultation paper prepared by the Small Business Commissioner in June 2016. Following consultation, the initial test has evolved into a Voluntary Code of Behaviour (Voluntary Code).

The Voluntary Code will be applicable to principal contractors  who bid for government  projects  of $4m and above for the metropolitan area and $1m and above for regional  areas. It is proposed that the Voluntary Code covering prime contractors' dealings with subcontractors on SA Government Building and Construction Projects be introduced into the current Industry Participation Policy tender assessment framework…

A copy of the Voluntary Code is available here.

The Voluntary Code covers the following areas:

  • Compliance with the Building and Construction Security of Payment Act 2009
  • Phoenixing
  • Sham Contracting
  • Disputed Payments
  • Collusive Tendering

The Voluntary Code requires a commitment to comply with the various state and federal laws. Any breaches of the Voluntary Code would be considered when assessing future State Government contracts.

The Small Business Commissioner is seeking feedback by 31 December 2017.  All submissions on the Voluntary Code should be made directly to the Small Business Commissioner Given the short time frame for consultation, the LGA will not be co-ordinating feedback from councils.

For further information please contact Andrea Malone (andrea.malone@lga.sa.gov.au)

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