Download Fact Sheet - Joint Venture Arrangements

Fact Sheet
Joint Venture Arrangements
The Scheme
The Australian Government building and construction
industry Work Health and Safety Accreditation Scheme
(the Scheme) operates such that, subject to certain
financial thresholds being met, only builders who are
accredited under the Scheme can enter into
head/principal contracts for building work that are
directly or indirectly funded by the Australian
Government.
Who requires accreditation in a joint
venture arrangement?
Only the members of a joint venture undertaking
building need to be accredited. Parties in the joint
venture not undertaking building work or who are
subcontractors to the joint venture do not need to be
accredited.
Are there any exceptions?
In some circumstances unaccredited builders may
undertake Government funded building work as part of
a joint venture with an accredited builder. These
circumstances are set out in Section 26 of the Scheme’s
Regulation.
What is required if the joint venture
includes an unaccredited builder?
A building contract between the joint venture and the
government agency/funding recipient cannot be
entered into unless the accredited builder in the joint
venture whose Work Health and Safety Management
System (WHSMS) will be in operation on the proposed
project, has provided the Federal Safety Commissioner
(FSC) with:

details about the relevant project

an undertaking, in writing, that states it will take
full responsibility for Work Health and Safety for
the life of the project and

an undertaking, in writing, that the building work
will be carried out in accordance with its
accredited WHSMS for the life of the project.
In addition, written undertakings for each builder in the
joint venture including any unaccredited builder and
any other accredited builder (whose WHSMS will not be
in operation on the proposed project site), must be
provided to the FSC as follows:

an undertaking, in writing, that they will carry out
the building work in accordance with the
accredited builder’s WHSMS for the life of the
project; and

an undertaking, in writing, that they will
participate fully in any audit of the accredited
builder’s WHSMS and its onsite implementation.
How do I provide these undertakings?
The required undertakings must be provided to the FSC
by email to [email protected].
The undertakings can be in any form as long as they
meet the requirements specified above and the
relevant undertaking is provided by all builders in the
joint venture.
Template undertakings are available on the FSC’s
website.
The undertakings will be considered by the FSC within
1 - 2 weeks of lodgement. The FSC will then write to the
companies to confirm that the undertakings satisfy the
Scheme’s requirements and that the joint venture may
sign contracts for the specified Government funded
project. The confirmation provided by the FSC only
applies to the joint venture and the specific project
outlined in the undertakings.
What if the joint venture does not
include an unaccredited builder?
Joint ventures involving only accredited builders do not
need to provide undertakings to the FSC, but will be
required to be provide additional information about
the WHS management arrangements that will apply on
the project. This information will be requested
following the receipt of a contract declaration, as per
any Scheme project, from one of the accredited
builders in the joint venture.
Special auditing and reporting arrangements may also
apply on a case by case basis. For advice on your
specific circumstances or any other queries about the
Scheme, please:

visit the FSC website at fsc.gov.au

contact the FSC Assist Line on 1800 652 500

contact the OFSC via email at
[email protected]
This fact sheet was last updated 7 April 2017. The Office of the Federal Safety Commissioner (OFSC) has prepared this fact sheet
for general information only, and it does not replace professional advice. This fact sheet is derived from a variety of sources and
has been prepared without taking into account your individual objectives, situations or needs. You should consider your
personal circumstances, and if appropriate, seek independent legal, financial or other professional advice before acting. The
OFSC has endeavoured to ensure the currency and completeness of the information in this fact sheet at the time of publication;
however, this information may change over time. The OFSC expressly disclaims any liability caused, whether directly or
indirectly, to any person in respect of any action taken on the basis of the content of this fact sheet.