Effective date: 8 July 2020
Procuring Works that may require the use of tip trucks
This requirement relates to Instruction 7.2.1(h)
When procuring Works that may require the use of tip trucks, Agencies must ensure that their contracts require the Contractor to ensure that any tip truck owner driver engaged in connection with excavation work, directly or indirectly, through one or more subcontractors, is paid according to the following requirements:
(i) if a tip truck owner driver is to be paid at an hourly rate then the hourly rate must be at least the applicable rate listed in the Rates and Cost Schedules for Tip Truck Owner Drivers developed by Transport Industry Council plus any Freight Broker fees due and payable and road tolls reasonably incurred;
(ii) if a tip truck owner driver is to be paid on a per load rate then the per load rate must be arrived at based on a reasonable estimate of the time likely to be required to complete the specific job, multiplied by the applicable rate listed in the Rates and Cost Schedules for Tip Truck Owner Drivers developed by Transport Industry Council, and adjusted for any agreed incentive component plus any Freight Broker fees due and payable and road tolls reasonably incurred;
(iii) for the purposes of calculating a per load rate, a reasonable estimate of the time likely to be required must:
1. take into account all of the relevant circumstances of the specific job, including but not limited to the volume or weight of the load to be moved, distance to be travelled for transfer, local traffic conditions, time of day, expected waiting times, special site conditions and other special circumstances; and
2. be based on what a competent and experienced person in the position of the person engaging the tip truck owner driver would consider to be a reasonable estimate;
(iv) if a per load rate includes an incentive component in addition to the minimum hourly rate, this incentive component may be reduced in proportion to any shortfall in the load moved, as agreed between the tip truck owner driver and the party engaging them;
(v) where project specific requirements (such as, but not limited to, additional safety requirements) add to the costs that would normally be incurred by the tip truck owner driver, then payments to the tip truck owner driver may need to be increased by the rate determined by the Principal; and
(vi) if the tip truck owner driver is underpaid, the Contractor must make good that underpayment or otherwise ensure that it is paid.
Tools and support
For further information about the Ministerial Directions and Instruction for public construction procurement, contact the Construction Policy Team.