Road Transport Contractual Chain Order May Return As Fuel Cost Pressures Persist: What Principals And Contractors Can Do Now

We have previously written about the Road Transport Contractual Chain Order – Fuel Cost Recovery – 2026 (RTCCO) and its implications for principals, contractors and road transport participants.

The RTCCO will likely be re-enlivened

On 26 August 2026, the Fair Work Commission’s Expert Panel (Fair Work Commission)held a case management hearing concerning the future of the RTCCO. The Transport Workers’ Union and Australian Trucking Association indicated that they intend to submit that the RTCCO should be varied to re-enliven its operative obligations, while some other interested parties may seek its revocation. Interested parties must identify their proposed approach by 31 August, with substantive submissions and evidence due by 14 September. The matter is listed for hearing on 28 September 2026.

We are already seeing principals and contractors receive notices from downstream parties foreshadowing future fuel cost pass-throughs.

In our view, it is likely that the RTCCO will be re-enlivened. The context that led to its introduction remains unchanged, including elevated fuel prices and continued disruption to fuel supply chains. The Fair Work Commission has also shown considerable concern for the position of road transport workers and businesses and has not, to date, been persuaded by submissions about the difficulties of implementing the RTCCO in the construction industry.

What can principals and contractors do now to get ahead?

Principals and contractors should therefore prepare now for potential cost pass-through claims from downstream parties. Given there is limited consideration in the order for how a claim might be substantiated, likely claim recipients should consider what would assist them to assess such claims and communicate to downstream parties that any claimed adjustment must be supported by reasonable evidence. Depending on the context, relevant evidence might include documents showing:

• the quantity of fuel used in performing the relevant work in the road transport industry
• the dates on which the relevant fuel was purchased
• the price paid per litre on those dates.

Doing so now should push downstream parties to contemporaneously record the relevant information and retain supporting evidence. In turn, this should assist principals and contractors to verify and administer any cost pass-through claims efficiently if the RTCCO is re-enlivened.