The NSW Government will introduce a new compliance initiative across the building and construction industry from 1 March 2026, aimed at improving transparency and enforcing industrial obligations throughout government supply chains.
The program will be led by the NSW Industrial Relations Construction Compliance Unit and is intended to assist agencies and contractors in meeting legislative, policy and contractual requirements. It forms part of a broader effort to strengthen oversight across projects that include schools, hospitals and public transport.
Under the plan, the Compliance Unit will conduct checks of publicly available records held by relevant regulators before a government contract is awarded. Any findings will be provided to the procuring agency to support its due diligence.
The unit will also work with client agencies and head contractors to establish and maintain a database of subcontractors operating on NSW Government construction sites. The government says this is designed to improve transparency and oversight across the sector.
Audits of head contractors and subcontractors will form the third stream of work. These will assess compliance with industrial relations obligations, including the payment of wages and superannuation. The Compliance Unit will continue to engage with contractors and industry groups as the initiative is rolled out.
The government has said it will monitor the program over the next 18 months and consider further measures to strengthen compliance.
Industrial Relations Minister Sophie Cotsis described the announcement as a key step in the government’s reform agenda. “I’m proud to announce the latest major milestone in our committed industrial relations reform agenda,” she said.
“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”
“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.”
Ms Cotsis said the government would work with stakeholders as the policy takes effect. “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.”
The initiative sits alongside other procurement and industrial relations measures introduced by the government. These include an ‘If not, why not’ requirement for agencies to engage with local NSW suppliers before going to tender for projects worth more than $7.5 million, updated obligations to address modern slavery risks in supply chains, and the re-establishment of the Industrial Court of New South Wales.
Minister for Domestic Manufacturing and Government Procurement Courtney Houssos said the compliance drive complements wider procurement changes. “Our procurement reforms allow us to grow the NSW economy and support local jobs, while upholding high standards of integrity and compliance,” she said.
“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.”
Ms Houssos added that public spending can be directed towards broader economic goals. “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.”
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