Building and Construction General On-site Award: Pay Rates, Classifications and Obligations

If your business is in the on-site building, engineering, and civil construction industry, then you’ll likely need to comply with the Building and Construction Award 2020 [MA000020].

The Fair Work Commission (FWC) increased modern award wages in Australia by 3.5% from 1 July 2025. In light of this, employers who operate under the Building and Construction Award Australia should carefully review it to ensure their employees receive the correct pay and entitlements.

In this guide, we detail who’s covered by the Award, how employees are classified, and rules on pay, leave, and penalty rates. This will help you approach Fair Work issues appropriately so you can avoid underpayment and possible fines.

The Building and Construction Award: A Quick Summary for Busy Managers

Pressed for time? Here are the Award essentials:

• The Building and Construction General On-site Award [MA000020] sets minimum employment standards and pay rates for employees who work in the following types of construction: general building, civil, metal and engineering, and residential.

To stay compliant, managers must consider:

• Award coverage: Whether the employee is covered by the Building and Construction Award as opposed to, say, the Electrical or Manufacturing Awards. In general, on-site construction roles (i.e. employees performing work on a construction site) are covered by this Award.
• Employee type: Whether the employee works on a full-time or part-time weekly hire, casual, or daily hire basis. 
• Employee classification: Which grouping the employee falls under. Classifications range from:
  • Levels 1 to 8 for construction workers in the general building and construction and civil construction sectors (CW). 
  • Levels 1 to 9 for engineering construction workers in the metal and engineering construction sector (ECW).
• Hours and timing of work: Whether the employee works day or shift work, whether they work standard or non-standard days or hours, and whether they work holidays, weekends, or overtime.

What to watch out for:

• Employers commonly misclassify employees under the Award based on their job titles rather than the work they actually do. For example, if a carpenter on a construction site has the job title of site manager, but they actually spend most of their time installing frames, then they must be classified based on their trade duties, not their manager title.
• Other common compliance issues under the Award include relying on flat rates or salaries that don’t properly absorb all Award entitlements, as well as failing to apply daily overtime and rostered days off (RDO) triggers correctly.

Coming up: Award dates and deadlines you need to know

Award Basics

Commonly known as the Building and Construction Award (or BACA), the Building and Construction General On-site Award is a modern workplace award that applies throughout Australia. The Fair Work Commission (FWC) put it together under the major labour law known as the Commonwealth Fair Work Act 2009.

The Award contains the minimum employment conditions for employers and employees in the on-site building, engineering, and civil construction industry. It covers pay rates, hours of work, overtime, and allowances. It’s intended to safeguard employees so they are treated fairly and receive the right entitlements under Fair Work rules.

Both the National Employment Standards (NES) and the Award provide minimum employment conditions. Under the NES, there are 11 basic entitlements for employees, and the Award adds industry-specific conditions on top of these.

Who is covered under the Building and Construction Award?

The Award covers employees working in general building and construction, civil construction, metal and engineering construction, and residential construction.

As a rule, if an employee performs work on a construction site (and not, say, in an office, factory or shop), and this work isn’t covered by a more specific award (such as the Plumbing or Electrical Awards), then the employee is likely covered by the Building and Construction Award. 

In addition, the Award covers these employers: 

• Employers that are part of the domestic residential and commercial building industries.
• Employers providing on-hire labour to businesses in the on-site building, engineering, and civil construction industry.
• Employers providing training for groups of apprentices or trainees who work for businesses in the on-site building, engineering, and civil construction industry.

Common employee roles covered by the Award include:

• Construction labourers and general site hands
• Operators of forklifts, excavators, and other construction machinery
• Concrete workers, joiners, and scaffolders
• Traffic controllers controlling access to construction sites
• Qualified tradespeople, trades assistants, and apprentices in certain trades, including bricklayers, carpenters, and plasterers
• On-site cleaners doing construction clean-up
• Road, rail, or bridge construction workers
• Stonemasons doing on-site construction or installation work

Who isn’t covered under the Building and Construction Award?

• Employees covered by another modern award, including the Electrical, Manufacturing, Mining, or Plumbing Awards.
• Employees in the quarrying industry as defined in the Cement, Lime, and Quarrying Award.
• Employees the Fair Work Act 2009 explicitly excludes from being covered by a modern award.
• Employees (or their employers) covered by a workplace agreement or enterprise award.
• Employees (or their employers) covered by a state public sector award or a transitional state public sector award.
• Employees in office-based roles, who are most likely covered by the Clerks Private Sector Award 2020 instead.

Coverage self-check: Does the Building and Construction Award apply?

Consider whether the following statements apply to you and your employee:

• I operate a building and construction business (such as a residential or commercial builder, a civil construction contractor, or a business that installs structures on site) and employ workers as part of this business.
• The employee works in an on-site construction role, such as a carpenter, bricklayer, steel fixer, scaffolder, plant operator, or trades assistant.
• The work:
  • Is done as part of on-site construction, alteration, repair, renovation, demolition, installation, or maintenance of a building, structure, or civil engineering project.
  • Doesn’t involve producing materials or components in a factory, workshop, or other manufacturing facility, even if they’re later used in construction.
  • Isn’t part of a stand-alone service industry whose primary business isn’t construction (such as cleaning, security, or property maintenance), even if the work happens at a construction site.
• The employee isn’t covered by a more specific award that applies to their primary duties (e.g., the Manufacturing Award for off-site fabrication, Road Transport Award for long-distance driving, or Clerks Award for office-based administrative staff).
• The employee isn’t genuinely managerial or professional in a way that would make them award-free: for instance, they’re not a project manager, construction manager, or engineer whose role is primarily managerial, professional, or administrative, and they’re not covered by a relevant classification under the award, such as engineering construction worker (ECW).
• There isn’t an enterprise agreement (EA) covering the employee. If there is, then the EA normally sets pay and conditions, subject to the better off overall test (BOOT).

If the above statements apply, then the employee is likely covered by the Building and Construction General On-Site Award 2020.

How to Determine Building and Construction Industry Award [MA000020] Requirements

To figure out what the Award requires, including pay, hours, and allowances, you’ll need to take each worker’s employment type and classification into account.

Employment types

The Award groups employees into 4 main categories. It also distinguishes between shiftworkers and day workers.

• Daily hire employees: These are tradespersons or labourers engaged on a day-to-day basis. They’re commonly used in construction work since work demands can fluctuate.
• Full-time weekly hire employees: These workers are employed for an average of 38 ordinary hours each week.
• Part-time weekly hire employees: These employees work an average of fewer than 38 ordinary hours each week.
• Casual employees: As opposed to full- and part-time workers, who work predictable hours, casual employees work irregular hours.
• Shiftworkers: This group of employees works unsociable hours (including late at night or early in the morning) and the Award puts them in contrast to day workers, who work more typical daytime hours. They have different rules than day workers under the Award.

For further details on each of these employee types, see the Award.

Building and Construction Award streams, classifications, and levels

Under the Building and Construction Award, there are four primary sectors: 

• General building and construction: This primarily involves commercial building work. It includes constructing and renovating offices, shopping centres, or multi-storey residential projects.
• Metal and engineering construction: This includes the:
  • Electrical/electronic stream (installing or maintaining electrical or electronic systems on construction projects)
  • Mechanical stream (installing or maintaining mechanical equipment or machinery)
  • Fabrication stream (fabricating, welding, or assembling metal components used in construction projects, such as structural steel frames, pipework, and platforms)
• Civil construction: This includes earthmoving and operation of heavy machinery or mechanical/powered construction equipment. It primarily involves building public infrastructure such as roads, railways, tunnels, bridges, and dams.
• Residential building and construction: This primarily involves housing construction work done for a single occupancy or dual occupancy residential building that isn’t multi-storey.

The Award groups employees into two main categories for the purpose of pay rates:

• Construction workers (CW): This category covers workers in the general building and construction and civil construction sectors. They typically work on projects such as housing, commercial buildings, fit-outs, and general trades and labour.
• Engineering construction worker (ECW): This category covers workers in the metal and engineering construction sector. They typically work on projects such as roads, rail, and bridges.

Each of these categories has levels that progress through the following stages: entry-level labour, skilled, trade-qualified, and advanced/technical/supervisory.

Also, both CW and ECW use parallel levels for employee classification. They’re essentially the same level structure, but just have different work environments.

Under the Award, employees are classified based on their skills and responsibilities, not job titles. 

The CW category contains Levels 1 to 8, while the ECW category contains Levels 1 to 9. The first 3 levels are as follows:

As the Award levels increase, additional training is required and employees operate increasingly complex machinery and systems. They may also be responsible for more supervision as well as quality control duties. For details on CW Levels 4 to 8 and ECW Levels 4 to 9, see Schedule A of the Award.

Building and Construction Industry Award Pay Rates and Entitlements Overview

The Building and Construction Industry Award sets minimum pay rates and is reviewed every year by the Fair Work Commission. Let’s review the Award’s pay rates, penalty rates, overtime rates, and other entitlements.

Minimum base rates

Here are the minimum base rates for adult building and construction employees, Levels 1 to 9:

The Award requires the payment of additional allowances in relation to both weekly and hourly payments. Some of these are discussed in the Allowances section below.

Also, an employee’s ordinary hourly rate under the award includes both their hourly rate based on their classification plus the relevant industry allowance. If an employee is entitled to receive an all-purpose allowance on top of the industry allowance, this will form part of their ordinary hourly rate as well.

Refer to the Award for details on how to calculate the total ordinary hourly rate for different types of employees (e.g., daily hire or weekly hire employees, apprentices or trainees, or leading hands). 

Penalty rates

Penalty rates must be paid to full-time, part-time, and casual employees when they work certain times or days.

Overtime rules and rates

All work that an employee does beyond their ordinary working hours must be paid for at overtime rates. Under the Award, overtime is payable for:

• Any time worked beyond ordinary hours on Monday to Friday
• Any work done during a meal break when required by the employer
• Any recalls to work after leaving the site
• Any work on public holidays
• Insufficient breaks between shifts (in some circumstances)

Weekend work is covered separately under the Award as penalty rates, not overtime. See the Penalty rates section above for details.

Employees who work beyond ordinary hours on Monday to Friday must be paid overtime at the following rate:

• Full-time and part-time employees: 150% of employee’s ordinary hourly rate for the first 2 hours, 200% after.
• Casual employees: 175% of ordinary hourly rate for the first 2 hours, 225% after.

See the Award for more information on overtime rates.

Breaks

The Building and Construction Award sets out the following break types:

For more information on paid crib time and other break details, see the Award.

Allowances

Under the Award, allowances are categorised as either wage-related allowances (more pay for particular responsibilities or working conditions) or expense-related allowances (reimbursements for certain work-related costs).

There is an industry allowance under this award that must be paid in addition to the employee’s weekly rate. This is an all-purpose allowance within the Award, with different amounts payable according to the industry stream.

The allowances contained in the Award include the following:

For full details on allowances and more specifics on the protective or other clothing or equipment allowance, refer to the Award.

Leave entitlements

Most leave entitlements for employees comes from the NES. The Building and Construction Award adds extra rules and conditions on top of this, especially in relation to annual leave.

Annual leave

Here’s what you need to know about annual leave under the Award:

• Full-time employees: Receive 4 weeks of paid annual leave.
• Part-time employees: Receive a pro rata amount based on the hours they’ve worked. 
• Seven-day shiftworkers: Receive 5 weeks of paid annual leave.

When employees take annual leave, they’re paid an additional amount on top of their base pay as follows:

• Day workers: Get the higher of 17.5% annual leave loading or the relevant weekend penalty rates they would have earned (not both).
• Shiftworkers: Get the higher of 17.5% annual leave loading or the shift penalty rates (including weekend penalties) they would have earned (not both).

For other annual leave rules, refer to the Award.

Other NES leave

The NES and the Award both cover other types of leave, including personal/carer’s leave, parental leave, and family and domestic violence leave.

How to Determine Building and Construction Industry Award Coverage

Any incorrect coverage or classification for your employees under the Award could result in compliance problems and financial headaches down the track. Here are some examples of how to figure out whether the Award applies and if so, how to apply it.

Building and Construction Award [MA000020]: A Practical, Real-World Example 

Harry is a 34-year-old full-time carpenter employed by a medium-sized commercial building company who:

• Has worked in the building industry for 10 years and holds a Certificate III in carpentry.
• Works on a commercial office construction site.
• Works 7:00am to 3:30pm on Monday to Friday, with a 30-minute unpaid meal break each workday.
• Is responsible for interpreting plans, setting out wall frames, and installing formwork and structural timber.
• Regularly works with a trades assistant on the site and helps coordinate their daily tasks.
• Worked an additional 2 hours per day for 3 consecutive full weeks during the last month to complete a concrete structure stage.
• Supplies and maintains his own tools for trade work.

How the Award applies to Harry:

Coverage: Harry is covered by the Building and Construction Award because he’s a tradesperson performing on-site building work for a construction contractor.

Classification and base rate: Harry’s duties align with CW 3 under the Award as a trade-qualified carpenter: he holds a relevant trade qualification, works independently from plans and specifications, and is responsible for the quality of his own work. He’s also classified as a day worker, as he works ordinary hours within the Award’s day work span, which is weekdays from 7 am to 6 pm. Accordingly, his minimum pay is $1,068.40 per week, plus the industry allowance of $64.10 per week, giving a total minimum of $1,132.50 per week. 

Penalty rates: Harry doesn’t receive any penalty rates during his normal working week, which is within ordinary hours under the Award.

Allowances: Harry is entitled to the industry allowance under the Award of $64.10 per week for working on a construction site. Harry’s also entitled to a tool allowance because he provides his own tools for work, which for carpenters is $38.60 per week.

Overtime: During the concrete structure stage, Harry worked 2 hours beyond his ordinary daily hours each work day for 3 weeks. Under the Award, the first 2 overtime hours each day are paid at 150% of the ordinary hourly rate for full-time employees. In addition, this overtime must be calculated using the ordinary hourly rate for CW 3 employees, which is found by taking the CW 3 minimum weekly rate of $1,068.40 plus the applicable industry allowance of $64.10 for general building and construction (a total of $1,132.50 per week) and dividing this amount by 38 hours (which equals $29.80 per hour). 

Therefore, Harry is entitled to overtime of 150% of $29.80 per hour (i.e., $44.70 per hour) for 2 hours per day (so $89.40 per day) over a 3-week Monday to Friday working period (a total of 15 days). $89.40 per day multiplied by 15 days works out to be total overtime of $1,341.00 payable to Harry for the work he did during the concrete stage.

RDO accrual: As a full-time employee on a 38-hour week with a rostered days off (RDO) system, Harry accrues RDO hours each week, and must either take the RDO or be paid out according to the Award.

Breaks: Because Harry works more than 5 hours per day, he’s entitled to an unpaid meal break of at least 30 minutes and a 10-minute paid rest break each day. 

Common Scenarios and Compliance Tips

Here are some examples of common situations where key checks need to be carried out to ensure compliance with the Award.

1. Residential builder appoints a “supervisor” who still spends most of the day performing trade work

Key checks:

• Confirm the employee’s actual duties rather than relying on their job title, such as trade vs leading hand vs supervisor.
• Classify the employee at the correct CW level (e.g., CW 4 or 5) based on their skills, qualifications, level of responsibility, and complexity of the work they do.
• Apply the correct leading hand allowance if the employee is placed in charge of other workers.
• Ensure the employee receives the correct overtime, penalty rates, RDO accrual, and leave entitlements under the Award.
• Check that the industry allowance and any other all-purpose allowances are included in the employee’s ordinary rate when calculating overtime and leave payments.

2. Small residential builders employs carpenters on an “all-in” hourly rate

Key checks:

• Confirm the correct CW classification (qualified carpenters are usually CW 3 or CW 4) based on their skills, qualifications, and duties.
• Ensure the all-purpose industry allowance is either separately identified or properly accounted for in the employee’s ordinary rate of pay.
• Test whether the flat rate adequately covers overtime, RDO accrual, and any applicable penalty rates (such as for weekend work).
• Verify that travel and fares, tool allowances, and any other relevant allowances are being paid where required.
• Conduct regular reconciliation checks to ensure employees are better off overall with this rate than they would be under the Award (i.e., BOOT checks).

3. Contractor engages labour through a labour-hire company on a major project

Key checks:

• Confirm which entity is the employer responsible for complying with the Award.
• Ensure labour-hire workers are classified at the correct CW/ECW level and aren’t automatically paid as general labourers.
• Check that site working arrangements (such as ordinary hours and RDO arrangements) are being applied correctly.
• Verify that overtime, penalty rates, and public holiday rates match the hours actually worked on site.
• Ensure casual loading is paid where workers are engaged as casual employees.

Common employer mistakes to avoid

Here are some common compliance errors that employers in the building and construction industry need to avoid:

• Misclassifying employees based on job title rather than actual duties. For example, calling a carpenter a “site manager” doesn’t change their classification under the Award if they still spend most of their working hours “on the tools” (i.e., doing trade work like installing frames). You need to classify your employees at the correct CW/ECW level based on their skills, qualifications, supervisory responsibilities, and the type and complexity of the work they actually do.
• Using flat hourly rates or annual salaries without proper set-off or BOOT checks. Under the Award, you need to make sure that all-purpose allowances (such as the industry allowance), overtime, RDO accruals, weekend penalties, travel and fares, and leading hand entitlements are properly absorbed and regularly tested. Flat rates that don’t fully offset these entitlements are a common source of systemic underpayment.
• Failing to pay the correct overtime based on daily hours and RDO arrangements. Overtime under the Award is generally triggered by working beyond the ordinary daily hours, not just by exceeding 38 hours per week. Don’t overlook any early starts, late finishes, Saturday work structures, or time worked on RDO cycles.
• Not applying or incorrectly calculating the industry allowance under the Award. You need to include the industry allowance in an employee’s ordinary rate for the purposes of working out their overtime, penalties, and leave. Treating it as a separate payment that’s excluded from these calculations can lead to underpayments. 

Glossary

All-purpose allowance

An all-purpose allowance is an allowance that’s treated as part of an employee’s ordinary rate of pay for all award-based calculations. This means it’s added to an employee’s base pay rate before calculating their other entitlements such as overtime, penalties, or leave.

Shiftwork

Shiftwork under the Award means work that’s performed on a rostered shift outside ordinary daytime work hours, where employees are engaged and paid as shiftworkers. It typically occurs on afternoon or night shifts and includes “unsociable work hours,” such as working early in the morning or late at night.

Day work

Day work under the Award means work performed within ordinary hours for a day worker (i.e., between 7:00 am and 6:00 pm on Monday to Friday). Put simply, it’s the non-shiftwork arrangement under the Award.

Resources and Links

• Building and Construction Award [MA000020] — A Fair Work Ombudsman document summarising who is and isn’t covered under the Australian Building and Construction Award.
• Building and Construction General On-site Award 2020 — The full Fair Work Ombudsman document detailing all pay rates, conditions, and classifications under the Award.
• Building and Construction General On-site Award 2020 — A PDF version of the full FWC Award document.
• Downloadable Pay Guide — Downloadable Building and Construction Award pay guide from the Fair Work Ombudsman.

FAQs

What is a building and construction award?

The Building and Construction Award is a modern Australian workplace award that outlines the minimum base rates, entitlements, and other legal work requirements for employees in the building and construction industry. It typically applies to employees who work on-site.

Does the building and construction award cover employees?

Yes, the Building and Construction Award covers employees who come within the Award’s classifications and aren’t covered by another modern award or an enterprise agreement.

How many hours a week does a building and construction award work?

The Building and Construction Award sets out ordinary working hours for employees as being 38 hours per week across a 4-week cycle, falling between 7 am and 6 pm on Monday to Friday.

Disclaimer

The information provided here is a summary only and does not constitute legal advice. While we have made every effort to ensure the information provided is up to date and reliable, we cannot guarantee its completeness, accuracy, or applicability to your specific situation. Laws change frequently, and outcomes may vary depending on your business circumstances. We recommend consulting a qualified employment lawyer before making decisions related to workforce management. Please note that we cannot be held liable for any actions taken or not taken based on the information presented on this website.