CCF NSW has lodged a submission with the Fair Work Commission challenging suggestions that existing Transport for NSW (TfNSW) contract provisions would automatically satisfy proposed fuel cost recovery requirements under the Road Transport Contractual Chain Order (RTCCO).
On behalf of our members, we strongly argued that the existence of a rise and fall clause in a TfNSW contract should not automatically be treated as evidence that contractors are receiving the fuel cost recovery intended by the Fair Work Commission.
“In most cases, the opposite is true,” CCF NSW CEO Kylie Yates said.
“If existing provisions are deemed sufficient, contractors will continue to carry significant fuel cost exposure despite the RTCCO’s intention that extraordinary costs be shared fairly throughout the contractual chain.”
CCF NSW argued in its submission that TfNSW’s existing rise and fall provisions were developed for a different purpose, and operate very differently to the new fuel cost recovery framework now being considered by the Fair Work Commission.
We outlined that the existing TfNSW mechanisms are usually linked to broader cost indices, operate on predetermined formulas, and are measured quarterly using historical ABS data. As a result, such predetermined methods do not respond in a timely or effective manner to extraordinary fuel price movements of the type the RTCCO was designed to address.
Ms Yates said the debate should focus on fair outcomes, not labels.
“The question is not whether a contract contains a rise and fall clause. The question is whether that clause actually delivers the fuel cost recovery intended by the Fair Work Commission,” she said.
“It’s pleasing to see that some clients, including many councils, are already sharing fuel costs with contractors as the FWC intended. The NSW Government appears to be taking a different position while it awaits further clarification from the Fair Work Commission.
“We are all seeking greater clarity, but the intent to share the pain fairly across the contractual chain is well understood.
“Civil contractors cannot be left to bear the brunt alone.”
CCF NSW has also written to Transport for NSW and Infrastructure NSW seeking information on the number of notices, early warning notices, claims and similar contractual notifications received from contractors relating to fuel and material cost pressures since February 2026.
The Federation continues to hear from members that notices and early warning notices are being issued as contractors assess and quantify the impacts of fuel and material volatility, reinforcing concerns that existing contractual mechanisms are not adequately responding to extraordinary market conditions.
This work forms part of CCF NSW’s broader advocacy on procurement reform, risk allocation and ensuring contract mechanisms are fit for purpose during periods of significant market shock.
We want to hear from members
Have you issued a notice, early warning notice or claim relating to fuel, material costs or supply chain impacts?
Have clients or rise and fall provisions or other contractual mechanisms responded effectively?
CCF NSW is continuing to gather intelligence from members (good, bad, or uncertain) to support ongoing advocacy with government and agencies.
Please contact Andrew Willcocks or Belinda Gow if you have examples.