Subject to certain financial thresholds, only builders who are accredited under the Scheme can enter into head contracts for building work that is funded directly or indirectly by the Australian Government.
Directly Funded Projects:
Projects are considered to be directly funded where an Australian Government agency has responsibility for the project funding and development, for example, a Defence facility, Medicare or Centrelink Office or a fit-out or refurbishment of existing Australian Government office accommodation.
The Scheme applies to projects that are directly funded by the Australian Government with a value of $4 million or more.
Indirectly Funded Projects
Projects are considered indirectly funded where an Australian Government agency contributes funding to a recipient through a funding agreement, grant or other programs, for example, road construction projects funded by the Australian Government or a new school built by a state government using funding provided by the Australian Government.
The Scheme applies to projects that are indirectly funded by the Australian Government where
- A head-contract under the project includes building work of $4 million or more (GST inclusive) AND:
- the value of the Australian Government contribution to the project is at least $6 million (including GST) and represents at least 50 per cents of the total construction project; OR
the Australian Government contribution to a project is $10 million (including GST) or more, irrespective of the proportion of Australian Government funding.