The charter pledges to ensure that through the procurement and delivery of council-backed building projects there will be high standards of employment status, health and safety, training and nationally agreed terms and conditions.
Cllr John Alexander leader of Dundee City Council, one of the local authority's signatories, said: "The council spends millions of pounds every year with construction companies on building projects throughout the city.
"This charter aims to ensure that each and every firm that we deal with treats its employees with the same care and respect that we show to our own workforce.
"Abiding by the elements of the charter will be a requirement of all contractors and their supply chain when working with the council."
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Also signing the charter on behalf of Unite the Union, Bob Macgregor, regional industrial officer, added: "We would like to thank Cllr Alexander, chief executive David Martin and all the councillors who supported this charter.
"Protecting the rights of construction workers is an ongoing struggle but the Dundee City Council Fair Work Charter is a significant step in the right direction. We're particularly pleased that it says companies will employ workers directly, and that nationally agreed terms and conditions will be adhered to.
"Unite will continue to campaign for the improvement of health and safety standards, plus proper pay and training, for construction workers across the whole of the country. We will be pushing hard to ensure that all public bodies in Scotland follow the example set in Dundee."
Among the dozen requirements in the charter are that all:
• operatives are directly employed on a PAYE basis under a contract of employment;
• contractors rigorously implement and adhere to the council's minimum standards for health and safety;
• workers are competent and have the appropriate level of skill to carry out the work they are employed to do; and
• projects will be completed to the highest standard to meet the aspirations of the citizens of Dundee.
Cllr Alexander continued: "The charter is there to ensure that our relationships with contractors and their subcontractors is fair and above board.
"With the charter signed everyone knows where they need to be before we will even consider doing business with them."
The charter was signed at Dundee City Council's City Chambers.
