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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.