The NSW Government is launching a new initiative to ensure compliance and improve transparency across the NSW building and construction industry.
Led by the NSW Industrial Relations Construction Compliance Unit (CCU), the initiative is designed to support government agencies and contractors to meet existing legislative, policy and contractual obligations across the construction supply chain.
This priority work reflects the Government's commitment to ensuring that all reasonable steps are taken to uphold lawful and ethical industrial practices throughout the industry, in line with existing legislative requirements. This will support the delivery of new schools, hospitals and public transport for the people of NSW.
Set to commence on 1 March 2026, the initiative will be delivered through three complementary streams of work:
- Prior to Government awarding a contract, the CCU will conduct checks of publicly available records held by relevant regulators. A report of any findings will be provided to the procuring agency to support its due diligence process.
- The CCU will work with client agencies and head contractors to develop and maintain a database of subcontractors operating on NSW Government construction sites, improving transparency and oversight
- The CCU will conduct audits of head contractors and subcontractors to assess compliance with industrial relations obligations, including the payment of wages and superannuation. The CCU will continue to work closely with existing contractors and the broader industry as the initiative is implemented.
The NSW Government will monitor the initiative closely over the next 18 months and look for opportunities to continue to improve compliance.
The announcement is the latest milestone in the NSW Government's industrial relations and government procurement reform agenda, which includes:
- An 'If not, why not' mandate for NSW Government agencies to engage with local NSW suppliers before going to tender for projects worth more than $7.5 million.
- Updated requirements for NSW Government agencies to take stronger action to address modern slavery risks across government supply chains.
- Re-establishing the Industrial Court of New South Wales to provide workers with access to workplace justice and improved workplace safety with specialist judges
Minister for Industrial Relations Sophie Cotsis said:
"I'm proud to announce the latest major milestone in our committed industrial relations reform agenda.
"The Supply Chain Initiative will play a key role in protecting hardworking building and construction workers across our state, and will ensure compliance and ethical standards across the entire supply chain. It will protect and promote businesses who do the right thing by complying with their legal and industrial obligations.
"We will work closely with workers and industry to ensure that the initiative is implemented effectively, makes sense on the ground, and truly delivers over the long-term."
Minister for Domestic Manufacturing and Government Procurement Courtney Houssos said:
"Our procurement reforms allow us to grow the NSW economy and support local jobs, while upholding high standards of integrity and compliance.
"With a multi-billion dollar infrastructure pipeline, we have an opportunity to drive domestic manufacturing, strengthen local supply chains and back businesses that invest in their workers.
"Better leveraging government spending to deliver value for money supports local jobs and the infrastructure and essential services that communities need, all at once, as part of one plan."
