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Australian Building and Construction Commission

Code Covered Entities and Security of Payment

The Australian Building and Construction Commission (ABCC) has responsibility for monitoring the Code for the Tendering and Performance of Building Work 2016 (Code), which includes security of payment provisions. 

The Code covers contractors and subcontractors who have expressed interest in or tendered for Commonwealth funded building work since 2 December 2016.  These contractors are known as ‘code covered entities.’

Once you become a code covered entity, you must comply with the security of payment obligations in the Code on all building work awarded to you from then on, including private projects.

The ABCC can assist code covered contractors and subcontractors understand their obligations and rights under the Code.

There are a number of requirements placed on code covered entities that are intended to help ensure that progress payments are made in a timely manner.

There are new mandatory reporting requirements under the Code for when code covered contractors must report any disputed or delayed progress payments to the ABC Commissioner.  These requirements must be transitioned to by code covered contractors by 1 September 2018.

If you are a subcontractor who is owed money, the ABCC can help you to identify if the contractor who owes you money, is a code covered entity.

A code covered entity that breaches the Code may find that the ABCC recommends that they are not able to tender for Commonwealth funded building work.

More information is available on the ABCC website at www.abcc.gov.au/securityofpayment or you can contact them via email enquiry@abcc.gov.au or phone 1800 003 338.

For more details on Security of Payment click here.