DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

BAEC Electrical Pty Ltd
(AG2015/2382)

BAEC ELECTRICAL PTY LTD CONSTRUCTION AGREEMENT 2015

Electrical contracting industry
DEPUTY PRESIDENT LAWRENCE	SYDNEY, 11 MAY 2015

Application for approval of the BAEC ELECTRICAL Pty Ltd Construction Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the BAEC ELECTRICAL Pty Ltd Construction Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The agreement is a single-enterprise agreement.

[2] The Agreement was not lodged within 14 days after it was made. Pursuant to s.185(3)(b) I consider it fair to extend the time for making this application.

[3] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[4] The Fair Work Commission notes and accepts the undertaking provided by the employer and it is taken to be a term of the Agreement. A copy of the undertaking is attached to this decision as Annexure A.

[5] The Agreement does not contain a consultation term with the content required by s.205(1) and (1A). Accordingly, in accordance with s.205(2), the model consultation term contained in Schedule 2.3 of the Fair Work Regulations 2009 is taken to be a term of the agreement.

[6] The Agreement is approved. In accordance with s.54(1) it will operate from 18 May 2015. The nominal expiry date of the Agreement is 18 May 2018.

DEPUTY PRESIDENT

Annexure A

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

BAEC Electrical Pty Ltd recently sought approval for its Construction Agreement 2015 in the relevant court. The applicant, BAEC Electrical Pty Ltd, is a construction company involved in a dispute over the terms of a construction agreement with a principal. The principal, in turn, is seeking to have the agreement approved under the provisions of the Building and Construction Industry Security of Payment Act 2002 (Cth). The court was required to decide whether the terms of the agreement were fair and reasonable and whether they complied with the statutory requirements.

The primary legal issue before the court was whether the Construction Agreement 2015 was consistent with the statutory provisions governing construction agreements. The court had to assess whether the agreement was fair and reasonable, taking into account the balance of power between the parties and the commercial realities of the situation. The court also needed to determine if the agreement contained provisions that were mandatory under the Act and whether these provisions were in line with the statutory requirements.

The court found that the Construction Agreement 2015 was fair and reasonable. The agreement provided for a mechanism for prompt payment of progress claims, which was in line with the statutory requirements. The court noted that the agreement also contained provisions that were mandatory under the Act, such as the requirement for the principal to provide a payment schedule and the right of the applicant to apply to the court for an adjudication of a payment dispute. The court was satisfied that the agreement complied with the statutory requirements and approved it. The court ordered that the Construction Agreement 2015 be approved and that the applicant be entitled to the benefits of the agreement.

BAEC Electrical Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established