Road Transport Contractual Chain Order: Construction and infrastructure issues raised at engagement conference

Earlier this month, the Fair Work Commission (FWC) held an engagement conference to hear urgent implementation and interpretation issues arising under the Road Transport Contractual Chain Order – Fuel Cost Recovery – 2026 (RTCCO). We previously issued commentary on the RTCCO generally, and its impact on principals and contractors.

The purpose of the conference was to hear from affected parties, not to provide answers.

A significant proportion of the issues raised related to the construction and infrastructure sector. These include:

• need for guidance on the road transport contractual chain – the FWC acknowledged the need for more concrete and practical examples of what constitutes a primary party, secondary party and road transport contractual chain
• mixed construction delivery models – questions remain about how the RTCCO applies where road transport is only one component of a broader construction, infrastructure or supply arrangement
• evidentiary issues – parties may face practical difficulty identifying fuel cost increases where they do not have visibility over routes, vehicles, subcontracting arrangements, mixed loads or the relevant transport work
• pricing methodologies – some parties are seeking to apply fuel levies or surcharges, but the basis for those calculations may not always be clear or consistent
• uncertainty over applicability in certain procurement structures – uncertainty was raised about whether master services agreements or panel arrangements would be captured where there are ad hoc or one-off purchases under standing terms
• residential construction – issues were also raised about the interaction between the RTCCO and fixed-price residential building contracts, including consumer protection provisions in the Home Building Act 1989 (NSW).

What can affected parties do?

The sector is facing several uncertainties which may give rise to disputes if not managed carefully. Parties should approach fuel cost adjustment claims pragmatically and commercially, with downstream parties providing reasonable substantiation and upstream parties recognising the commercial pressure and compliance issues arising from the RTCCO. In many cases, a practical commercial resolution may be preferable to allowing technical uncertainty under the RTCCO to become a broader project-delivery dispute.

The RTCCO is listed for a formal review before the FWC on 25 May 2026.

If you have any questions about the RTCCO and how it may impact you, please contact us here.

Disclaimer
The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.

Published by:

Helena Golovanoff

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