Business Law in Construction: Roles, Licensing, and Regulations Explained
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Discover the key aspects of business law in the construction industry, including the role of a professional builder, licensing and permits, regulations, and the importance of adhering to legal requirements.
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Running head: BUSINESS LAW Business Law Name of the Student Name of the University Author Note
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1BUSINESS LAW Executive Summary A builder’s role is more than just constructing buildings. It may include few other types of work as well, like contracting for building works, Giving quotation for tenders, arranging payments for subcontractors and labours, making schedule for construction work, conducting on-site inspections and meetings, subcontracting to other builder in case of necessity.A professional builder is expected to interpret architectural drawings and lay down his own visions and thoughts to it. The professional builder must coordinate with his human resource, that is, the workers who are one of the main components that carry forward a construction work.To work as a builder it isimportant to have a licenceor be registered under the Victorian Building Authority. Without a proper licence any builder would not be permitted to carry out construction work. The licence is a proof of his ability and competence as a builder.The professional builder must adhere to the legal requirements, legislations and standard along with ensuring the safety quality and cost of the construction work. It is of utmost importance that the builder must submit the architectural plans to the local authorities before even starting the initial construction work. This paper covers everything that a person would require, from getting himself/herself registered into a qualified builder course to getting registered as a builder and eventually following the laws and regulations to continue a career as a successful and responsible builder.
2BUSINESS LAW Table of Contents Introduction....................................................................................................................4 Qualified Builder’s Course............................................................................................4 The functions of a professional builder......................................................................5 Registration under VBA.................................................................................................5 Licences and Permits......................................................................................................7 Types of Builders’ Licences.......................................................................................7 Restrictions.................................................................................................................8 Permits........................................................................................................................8 White card..................................................................................................................9 Australian business number (ABN).........................................................................10 Contractors...................................................................................................................10 Insurance......................................................................................................................10 Payments......................................................................................................................12 Security of Payment.................................................................................................12 Taxation........................................................................................................................13 Finance.........................................................................................................................13 Memberships................................................................................................................13 Membership of the Australian Institute of Building (AIB)......................................13 Membership of the Australian institute of quantity surveyors (AIQS)....................14 Membership of the Australian Institute of Business surveyors (AIBS)...................15
3BUSINESS LAW Membership of the Housing Industry Association (HIA)........................................15 Master builder..........................................................................................................16 Approach to the Environment......................................................................................16 Legal requirements.......................................................................................................17 Primary legislation important for construction industry..........................................18 Secondary legislation important for construction industry......................................19 Conclusion and Recommendation................................................................................21 References....................................................................................................................23
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4BUSINESS LAW Introduction A builder’s role is more than just constructing buildings. It may include few other types of work as well, like contracting for building works, Giving quotation for tenders, arranging payments for subcontractors and labours, making schedule for construction work, conducting on-site inspections and meetings, subcontracting to other builder in case of necessity. All one needs is a contractor’s license which can be limited to, for example, doors and windows installation or setting up special type of roof for a house. One also requires a registration as to a supervisor for building work or he may also hire all registered and approved supervisor (Business.gov.au 2019). Thus, Bob’s brother would be required to follow the below-mentioned rules and regulations to establish himself as a professional builder.To work as a builder it isimportant to have a licenceor be registered under the Victorian Building Authority. Without a proper licence any builder would not be permitted to carry out construction work. The licence is a proof of his ability and competence as a builder. Qualified Builder’s Course The Victoria state government lays down several builders’ courses whose training time may vary from 9 months to a longer period of 5 years. The average fees for a builder’s course are around $77,622(Victorian Skills Gateway 2019). The state government expressly mentions that the chances of employment after pursuing the builder’s course under it seem to be strong and prospective(Victorian Skills Gateway 2019). For pursuing a professional builder’s course in Victoria's one would require: Diploma in building and construction Experience in the construction industry Registration under Victorian Building Authority
5BUSINESS LAW ï‚·A White Card for having an access to any construction site in the country(Victorian Skills Gateway 2019). The functions of a professional builder A professional builder is expected to interpret architectural drawings and lay down his own visions and thoughts to it. The professional builder must coordinate with his human resource, that is, the workers who are one of the main components that carry forward a construction work. The builder must focus into procurement of raw materials for the construction work and similarly must be well acquainted with the delivery of materials and equipments required for the construction from time to time(Victorian Skills Gateway 2019). It is of utmost importance for a professional builder to be conscious about the deadline of the construction work that he has committed to the owner. Sticking to the budget pre-decided is also important so that there comes no such situation where the builder needs to negotiate for extra payment from the owner(Victorian Skills Gateway 2019). The professional builder must adhere to the legal requirements, legislations and standard along with ensuring the safety quality and cost of the construction work. It is of utmost importance that the builder must submit the architectural plans to the local authorities before even starting the initial construction work. A professional builder must oversee and inspect the ongoing building work and take progress report from the subcontractors, if involved(Victorian Skills Gateway 2019). Registration under VBA TheVictorian building authority(VBA) regulates the plumbing and building practitioners for ensuring the efficiency and competitiveness in the construction industry in Victoria. VBS services comprises of responding to enquiries from the common people pertaining to plumbing and building industry. It has the responsibility to register, provide licence and discipline to the numbers in Victoria. It also provides registration and licence to
6BUSINESS LAW the builders in Victoria. It also issues the owner-builder certificate of consent. It gives expert technical advice as well as solutions the builders of the construction industry. The major and critical responsibility of this authority is to monitor the collection of building permit levies. It publishers data for the plumbing and building practitioners. It gives protection of the consumers who are dealt by the builders in the process of a construction assignment. It also oversees the activities of building surveyors and the building permit system of Victoria. Theaim of VBAis to establish a respected construction industry which will be guarded by a trusted regulator along with a conscious community of builders and plumbers in Victoria. Itsobjectiveis to protect the construction industry as well as the community by empowering the practitioners as well as the consumers. Its tribes to respond to the concerns and the difficulties of the industry, thus improving the culture and capability of the industry. TheBuilding Act 1993controls the building activity in Victoria. It decides the legislative framework for making regulations pertaining to construction, building standards and maintenance of building safety features. TheObjectiveof the Act is to protect the people and ensure their safety and health, who use buildings and other public places Bob’s brother must be registered with theVictorian Building Authorityin order to be a registered builder, domestic or commercial. Registration is mandatory for performing domestic building work, pricing above $10000 that includes labour charges and the cost of materials. For carrying out works like demolition, re-blocking or re-stumping registration is mandatory irrespective of the cost. Registration is also important for carrying out different types of building work like painting or plastering that amounts to more than $10,000 which includes labour charges and material costs. Domestic buildermay be categorised into a Domestic builder of unlimited scope or class of work and Domestic builder who is limited to specified class of work. A domestic builder with unlimited class of work can carry out manage or arrange several kinds of
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7BUSINESS LAW domestic building works like construction renovation maintenance of a home, specified under class 1,2, 4 and 10 specified under the Building Code of Australia. On the other hand domestic builder who is limited to a class of work is vast and more in number than that of unlimited work.Domestic Building Workis related to the construction, improvement, maintenance or renovation of a home that is a residential premise or even a commercial premise that is used for residential purpose as well. Bob’s brother needs to keep it in mind that if he is signing a contract to work on a domestic building project exceeding $10,000, then he must enter into a major domestic building contract with the client. He must also remember to get himself registered under the Building Act 1993 for entering into a major domestic building contract. If Bob’s brother gets himself registered under theUnlimitedClass, he would be liable to carry out all kinds of domestic building work that includes construction, improvement, maintenance and renovation of the a home (class 1,2 and 4 buildings and associated class 10 buildings as laid down in the Building Code of Australia). However, if he gets himself registered under theLimited Class,then he shall be liable to carry out the specified activities mentioned in the certificate of registration. To apply, Bob’s brother needs to clear the national Police check and get hold of the domestic builder registration application form. Licences and Permits Types of Builders’ Licences In Victoria Builders' licence are regulated and managed by the Victorian Building Authority (VBA). Builders’ licence is calledBuilders’ Registrationin Victoria(Hia.com.au 2019).It isimportantto register for licenceas without a licence under the Victorian Building Authority, Bob’s brother or any other builder, of limited or unlimited class, will not be permitted to carry out construction work and it would be illegal if one does.
8BUSINESS LAW There aredifferent types of builders’ registrationor licence in Victoria among which the most common types are: Commercial Builder, Limited and Unlimited Domestic Builder, Limited and Unlimited Domestic Builder, Manager It is important for the builders to understand and get themselves registered into the particular registration type they want to pursue as there would be permitted add to be able to work only on the projects they are registered for. The builders are restricted from working on any other kind of projects on which they are not qualified all registered to work(Hia.com.au 2019). Restrictions There are several restrictions that Bob’s brother needs to comply with as a registered builder. There are restrictions as not to indulge in construction work without a proper licence with the Victorian Building Authority (VBA) initially. Once he has obtained the licence of construction, he must comply with the restrictions laid down under theBuilding Regulations 2018, such as restriction to keep the noise low while construction, restriction to protect the flora and fauna around the construction site, restriction not to damage any public property while carrying out construction work, liability to maintain the safety of the workers, et cetera. It is important to maintain these restrictions, as otherwise it might cost builders a huge penalty or even cancellation of his licence. Permits Construction industry involves the following Licences and permits under the state government which relates to: Building licence
9BUSINESS LAW white card electrical licence plumbing licence licence to construct a bore or well Gas fitting licence heavy vehicle licence zoning approvals Permit to carry out high risk work Permit to take down trees if needed however protecting tree and wildlife is a priority Permit to use explosives to blast things required for construction Permit to work on properties that have been branded as a heritage Permit to dispose of construction wastes Permit to use dangerous chemicals or substances that are essential for construction work. White card A white card refers to the training of construction induction. People who carry out construction work need a proof of their completion of a general occupational health and safety (OHS) training for working in the construction industry. An employer recruiting constructorsorworkersforconstructionworkinVictoriamastaskforaVictorian construction induction card (white card) before allowing the worker to start working on the project(Worksafe.vic.gov.au 2019). For applying for a white card, Bob’s brother needs to attend any kind of construction induction training course under a registered training organisation and then use the statement of attainment given to him as an evidence for starting to work on construction projects. The person then needs to wait for the formal white card to arrive in his mail.
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10BUSINESS LAW Australian business number (ABN) Bob’s brotherwould require an Australian business number like any other person carrying out any kind of business in the country. An Australian business number contains a 11 digit unique number that helps to identify a particular business in front of the Government and the community as a whole(Business.gov.au 2019). A person carrying on an enterprise musthaveanABNwhileineligiblepersonwouldberefusedbytheauthority (Ablis.business.gov.au 2019). An ABN would help: To establish one's business identity in front of others for making purchases, placing orders and for giving out invoices. To avoid paying the pay as you go (PAYG) tax on the payments that one receives. For claiming goods and services tax credits (GST) For obtaining an Australian domain name. For claiming energy grants credits(Business.gov.au 2019). Contractors The construction industry often makes use of contractors for performing special skills. Contractors like plasterers bricklayers electricians draftspersons plumber concreters are often required for the building and construction industry. For the purpose of setting provisions for paying taxes, workers compensation along with superannuation, it is necessary for the builder to be clear of the purpose and the role of the skilled person, whether hired as an employee or a contractor (Business.gov.au 2019). Insurance Bob’s brother may have insurance when he is working on domestic building work which requires Council approval.TheBuilding Indemnity Insurancecost around $12,000 or more which includes the process of building a house renovating it and building an
11BUSINESS LAW extension of the house. The builder must serve a copy of his certificate of insurance when he is constructing a domestic building, to the owner of the building as well as to the Council (Business.gov.au 2019). TheHome Warranty Insurancefor construction projects expertise in delivering the bestqualitywarrantyservicestotheresidentialbuildingconstructionindustry (Hiainsurance.com.au 2019). The home warranty protects the home owner by insuring him against the non completion of the building contract and also against the failure of the builder to rectify the false that he has made in the process of construction. It makes sure that the builder rectifies its false for it is responsibility of the builder to rectify the false within in the agreed warranty period. In Victoria, any building work exceeding the amount of $60,000 which covers up to $300,000 (Hiainsurance.com.au 2019).Home warranty periodis off of 6 years immediately counted after the overall completion of the construction work. Contract Works Insuranceor the Construction and Public Liability Insurance policies make sure that the activities related to a construction project are brought together to cover the interests of the parties involved in the project. This insurance covers not the owner of the project and the builder, but also the sub-contractors, the equipment and material supplier. Itcovers accidental riskswhich may cause physical hurt or severe damage to the workers present at the construction site, along with third party liability. This policy covers every kind of risk that a construction project may face, however, subject to terms and conditions. Professional Indemnity Insuranceindemnifies a builder, building surveyor, quantity surveyor,buildinginspector,draftspersonandengineersaswellaserectors,building demolishers and supervisor of temporary structures. This insurance indemnifies the building practitioners against civil liabilities pertaining to the claims made during the insurance period arising out of breach of duty of care of such building practitioner.
12BUSINESS LAW Domestic Building Insurance,previously known asBuilders Warranty Insurance covers the homeowners who face issues with defectiveor incompletebuilding work. Construction works exceeding the amount of $16,000 calls for Domestic building Insurance. It covers up to $300,000 for fixing structural defects till six years and non-structural defects till two years. Therefore, it is advised to Bob’s brother to opt for the following types of insurances which would cover him and his clients from any potential risk. Payments It is opined that when Bob’s brotherwould be working on a domestic building work, he may ask for an advance deposit before he starts working on the project. The amount of advance deposit may vary from the cost of one project to another. A project amounting between $12,000 to $20,000 would allowBob’s brotherto ask for a deposit, which is not more than $1000 (Consumer.vic.gov.au 2019). While a project which is of $20,000 or higher may require him to ask for a deposit not more than five percent of the total cost of the project (Consumer.vic.gov.au 2019). He may also ask the owner for payments regarding testing the soil of the land to check favourability of construction or payment for Council approval fees. Security of Payment Builders,landownersandorganisationsenteringintoagreementinvolving construction work, often gets involved in disputes pertaining to payment. In such case, the Building and Construction Industry Security of Payment Act 2002 (SOP Act)makes sure that the parties involved with construction work gets paid as per the pre-decided construction agreement. Under this legislation, parties get an inexpensive as well as fast resolutionandsucceedstorecoveroutstandingpaymentunderan agreement,without requiring a lawyer. The Victoria Building Authority (VBA) observes and controls the activity
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13BUSINESS LAW under the SOP Act. The VBA authorises the Authorised Nominating Authorities (ANAs) to carry out the services under this Act. Taxation Bob’s brother requires a number of finance and tax measures pertaining to his construction business that includes personal services income (PSI) denotes the income that one derived from his personal skills or effort as an individual along with the taxable payments annual report (TPAR) that needs to be filed by August 28 every year, which includes construction services, cleaning services, courier services, IT services, Road freight, services and surveillance services (Business.gov.au 2019). Finance The builders of Victoria are often provided financial help by governmental and non- governmental organisations.Sustainability Victoriais a governmental organisation that aims to promote and facilities environmental sustainability(Sustainability.vic.gov.au 2019). It provides funding to the builders for constructing better commercial buildings under the better commercial building program. They are provided up to $30,000 of fund per building. The organisation provides funds and grants for community engagement as well as infrastructure development(Sustainability.vic.gov.au2019).Commercialbuildingownersaswellas potential builders may apply for the program. Memberships Membership of the Australian Institute of Building (AIB) Any individual having a contribution for the development of construction can be a member of the Australian institute of building (AIB)(Aib.org.au 2019). The membership will provide an opportunity of:
14BUSINESS LAW ï‚·Influencing the policies pertaining to buildings in Australia ï‚·Making contributions to the preparation and revision of University courses related to construction and building management(Aib.org.au 2019). ï‚·Demonstrating examplesby way of achieving building awards for professional excellence. ï‚·Promotingthe profession of construction and building management and leaving a significant contribution to the industry ï‚·Obtaining recognition as a chartered building professional(Aib.org.au 2019). AIBmembershipsprovideseveralbenefitslikeprofessionalrecognition,being professionally informed and aware of what is going on in the industry, to protect the interest and agenda of the profession from being tampered by the government, et cetera(Aib.org.au 2019). Membership of the Australian institute of quantity surveyors (AIQS) It is a professional body which lays down the standards of codes of ethics and leadership for ensuring that practicing quantity surveyors maintain the required standard for professional excellence(Aiqs.com.au 2019). It is important for a builder to be a member of the Australian institute of quantity surveyors as the organisation has an important role to collect data pertaining to construction costs and construction engineering. AIQS publishes the Australian standard method of measurement of building works that lays down the highest standardthatisexpectedintermsofconstruction,cost,engineeringamongothers (Aiqs.com.au 2019). The function of AIQS is: ï‚·Ensuring the required standard of training for construction work ï‚·Ensuring that the members are aware of the emerging issues that affects the industry
15BUSINESS LAW Supporting the education and training of the trainees undergoing builder’s course (Aiqs.com.au 2019). Laying down ethical standards and code of conduct pertaining to the construction industry Maintaining standards and procedure pertaining to the industry Presenting statements and policies relating to industry matters(Aiqs.com.au 2019). Membership of the Australian Institute of Business surveyors (AIBS) The membership of Australian Institute of Business surveyors (AIBS) is essential for it helps in the professional development of its members through educational pathways, ensuring well-educated building surveyors(Aibs.com.au 2019). The AIBS represents the building serving practitioners in Australia that promotes a safe built environment. The members get the chance to contribute to specialist committees along with the scope to contribute to the building serving profession(Aibs.com.au 2019). This organisation helps to increase the level of professionalism among its members and support them with the help of training, general education programs and conferences at a discounted rate. Therefore Bob’s brother would be able to derive a lot of professional benefits and assistance from AIBS (Aibs.com.au 2019). Membership of theHousing Industry Association (HIA) TheHousingIndustryAssociation(HIA)beingtheofficialfaceofAustralian residential building industry, it supports its members to manage and grow their business (Hia.com.au 2019). The members get the top advice from the HIA specialist who gives advice regarding legal, technical safety and other beneficial matters regarding the profession. It helps to connect one builder with another on the professional front which helps them to network and make better professional connections in the industry(Hia.com.au 2019).
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16BUSINESS LAW Master builder Master builders Australia is an organisation that promotes the interests of its members and the $200 billion construction industry of the country. It represents all the sectors of the constructionindustrycomprisingoflargeandsmallfirmsofinternational,national, commercial, residential status along with civil, local sub-contractors, suppliers and industry advisors(Masterbuilders.com.au 2019). Master builder Australia aims to establish: A skills and dedicated workforce; Better infrastructure investment; Regulatory system for the industry A growing economy A productive yet safe place Affordable housing projects for common people(Masterbuilders.com.au 2019). Bob’s brother is advised to take up membership in the following organization as a builder which would be beneficial for him in terms of his work and making newer contacts in the industry. Approach to the Environment Bob’s brotherneeds to be conscious about the environmental conditions where he is planningtostarthisconstructionproject.Hemustlearnhowtotackletheadverse environmentalsituationsalongwithleavingadverseimpactontheenvironment (Business.gov.au 2019). The building and construction industry must be concerned about the following environmental concerns: House energy ratings to know the energy efficiency of a home that depends on its design(Nathers.gov.au 2019). Locations that has a soil contamination.
17BUSINESS LAW Locations that are infected by poisonous plants, insects, animals or contagious diseases. Areas that are prone to flood Areas that are prone to be affected by bushfire Tree management Waste management and its reduction. Bob’s brothermust be extremely careful about the harmful and adverse effects that the construction work might have on the particular location(Business.gov.au 2019). Therefore he must be majorly concerned about proper waste disposal management for ensuring that the construction wastes are not deposited at any random place for that would pollute the environment(Business.gov.au 2019). Along with that, he must research on the locations of the construction project and find out whether the location is favourable for the project. Even if such clauses are not included in the agreement of the building work, it falls within the professional ethics and code of conduct of the builder to make sure that the owner gets a safe and secure environment to live in, after the completion of the project(Business.gov.au 2019). Legal requirements As a builder Bob’s brother must look after certain warranties regarding meeting the specifications of the plan and meeting the legal requirements for the particular construction work. In addition he must be careful to finish the construction work which was decided as per the contractual agreement. He must ensure that a building is of good quality which is fit for human inhabitation devoid of any sort of unsafe or risky conditions (Business.gov.au 2019). Some of the significant legislations that are essential for the construction industry are: Australian Consumer Law Competition and Consumer A 2010 Disability (Access to Premises Building) Standards 2010
18BUSINESS LAW ï‚·National Construction Code ï‚·Environment Protection and Biodiversity Conservation Act 1999 ï‚·State Building Acts(Vba.vic.gov.au 2019). Primary legislation important for construction industry 1.Building Act 1993 In Victoria, building activities are governed by theBuilding Act1993. This legislation lays down the legislative framework that regulates construction work, building standards as well as the required maintenance for specific buildings to ensure safety. This legislation aims to protect the health and safety of the people who uses the constructed buildings and other constructed public places. It also looks forward to enhance the amenities and features of buildings by ensuring their good standards. TheBuilding Act 1993controls the building activity in Victoria. It decides the legislative framework for making regulations pertaining to construction, building standards and maintenance of building safety features. TheObjectiveof the Act is to protect the people and ensure their safety and health, who use buildings and other public places. 2.Domestic Building Contracts Act 1995 Domestic Building Contracts Act1995 governs the home building contracts in Victoria, Australia.Ittalksabouttheamountthatisrequiredformakingadeposit (Consumer.vic.gov.au 2019). The Act defines the stages of making the building along with the stages in which the client must be the builder. This legislation requires a builder to be registered with the Victorian building authority for being eligible to indulge into major domestic building contracts(Consumer.vic.gov.au 2019). 3.National Construction Code Of Australia (NCC)
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19BUSINESS LAW Previously it was known as the Building Code of Australia(BAC), theNational Construction Code (NCC)is published and controlled by the Australian building codes board (ABCB). The NCC provides the technical provisions that talk about the construction and design of buildings all over Australia. The NCC has the legal validation of the building regulatory legislation in every state throughout the country(Guides.slv.vic.gov.au 2019). The Australian building codes board aims to deal with the issues pertaining to health safety and sustainability of the performance and design of the buildings with the help of the national construction code. The board aims to develop an effective regulatory system along with setting up non regulatory solutions(Guides.slv.vic.gov.au 2019). 4.Building Regulation 2018 This Regulation amends the previous Regulatory legislations and gives out information and requirements relating to building practitioner and their permits. It deals with matters regarding the registration of Building practitioners and issuance of their certificates. It gives regularly updates the prescribed forms. It lays down infringement offence pertaining to display of building permit. It also holds offence for violating the provisions of occupational health and Safety Act 2004 and calls for disciplinary action, suspension or cancellation of registration. It strives to amend and remove the redundant provisions and add necessary provisions, if needed. Secondary legislation important for construction industry 1.Occupational Health And Safety Act2004 TheOccupational Health and Safety Act2004 AIIMS to secure the safety, good health and welfare of the walkers or employees working in any kind of occupation in Australia. A builder must follow this particular legislation for ensuring a good health and safety for his workers along with ensuring that they face no risk in their job. 2.The Accident Compensation Act 1985
20BUSINESS LAW The builder must consider theAccident Compensation Actthat lays down the rules and regulations pertaining to the eligibility of a worker to receive compensation when they come across any risk or hazardous accident while at the job and are physically hurt, temporarily or permanently deformed. 3.Project Development And Construction Management Act 1994 TheProjectDevelopmentandConstructionManagementAct1994facilitatesthe development of projects by government in Victoria Australia. At least down standards and direction for the government, which needs to be maintained while constructing any building, bridge or road for the public. 4.The Housing Act 1983 The Housing Act1983 lays down the rules and regulations and standards for building social housings in Victoria, Australia. 5.The Local Government Act 1989 TheLocal Government Act1989 provides for the framework to establish and operate councils in Victoria, Australia. It lays down provisions for: ï‚·Interest the council with the power to make and enforce local rules and regulations. ï‚·The levy of council rates and charges ï‚·Carrying out local council elections ï‚·Entitling residence and repairs to vote in council elections ï‚·Preparing council plans, annual reports and budgets(Local Government 2019). 6.The Domestic Building Contracts and Tribunal Act 1995 Builders and the owners must have a written contract between them which would lay down their requirements from a particular project. The requirements of the project should meetthestandardslaiddownundertheDomesticBuildingContractsAct1995
21BUSINESS LAW (Vba.vic.gov.au 2019). It is a binding contract between the builder and the owner which food comprise of the starting and the completion date along with all the details of payment and other safety standards. The owner is required to cross check the building agreement and must ensure that it includes a start and finish date, and an all-inclusive payment quotation along with a time period for making payments in installment(Vba.vic.gov.au 2019). While, the builder must cross-check the bank details of the owner so that they do not face any adverse consequence pertaining to costs and payments. Irrespective of all such checking and cross checking of contractual documents and contractual clauses, there might be certain dispute that may arise between the builder and the owner(Vba.vic.gov.au 2019). In such situation the domestic building contracts act directs both the parties to institute legal suits under the Domestic Building Contracts and Tribunal Act 1995. The Act: Provides for the proper standards to carry out domestic building works by being fair to both the builder and the owner(Vba.vic.gov.au 2019). Resolve disputes that involve domestic building works as quickly, cheaply and efficiently as possible along with giving regards to the furnace to the builder and the owner. To make sure that the owners who have delegated the building work to a builder to have access to insurance fund in case the contract is defective or incomplete (Vba.vic.gov.au 2019). Conclusion and Recommendation Therefore,Bob’sbrotherneedstofollowtheaboveguidelinesasthelegal requirements; the registration instructions along with the licencing rules would help him establish himself as a builder after having a career as a carpenter.A professional builder is expected to interpret architectural drawings and lay down his own visions and thoughts to it. However, before starting to work as a professional builder, he would be required to complete
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22BUSINESS LAW the following steps: Firstly, he would be required to get himself registered into a builder course for learning the intrinsic details about the profession and then after passing out he may work as an apprentice under any established builder to muster experience from practical work. After gather enough practical lessons and experience, he may register himself under the Victorian Building Authority and look for private projects to start his career as a builder independently. Additionally, the regulations pertaining to insurances and taxes associated with the profession would hold Bob’s brother to establish himself as a builder.
23BUSINESS LAW References Ablis.business.gov.au.(2019).ABLIS|Enablingbusiness.[online]Availableat: https://ablis.business.gov.au/ [Accessed 19 Mar. 2019]. Aib.org.au. (2019).Membership – Australian Institute of Building. [online] Available at: https://www.aib.org.au/membership/ [Accessed 19 Mar. 2019]. Aibs.com.au.(2019).WhyJoinAIBS?.[online]Availableat: https://aibs.com.au/Public/Membership/WhyJoin/Public/WhyJoinAIBS.aspx? hkey=46beaca9-dcb7-4c64-9fae-09f175acbb00 [Accessed 28 Mar. 2019]. Aiqs.com.au.(2019).AboutAIQS.[online]Availableat: https://www.aiqs.com.au/imis/AIQS_Website/About/About_Us/AIQS_Website/About/ About_AIQS.aspx?hkey=543b478b-fecf-412c-8836-6815796baa66[Accessed19Mar. 2019]. Business.gov.au. (2019).Building and construction industry fact sheet. [online] Available at: https://www.business.gov.au/planning/templates-and-tools/industry-factsheets/building-and- construction-industry-fact-sheet#contractors [Accessed 19 Mar. 2019]. Business.gov.au.(2019).RegisterforanAustralianBusinessNumber(ABN).[online] Availableat:https://www.business.gov.au/registrations/register-for-an-australian-business- number-abn [Accessed 19 Mar. 2019]. Consumer.vic.gov.au. (2019).Deposits and payments for building work. [online] Available at:https://www.consumer.vic.gov.au/housing/building-and-renovating/plan-and-manage- your-building-project/deposits-and-payments [Accessed 19 Mar. 2019].
24BUSINESS LAW Guides.slv.vic.gov.au.(2019).ResearchGuides:StandardsinStateLibraryVictoria: NationalConstructionCode.[online]Availableat: https://guides.slv.vic.gov.au/standards/ConstructionCode [Accessed 19 Mar. 2019]. Hia.com.au.(2019).HowToGetABuilder'sLicense.[online]Availableat: https://hia.com.au/Training/builderLicence [Accessed 28 Mar. 2019]. Hia.com.au.(2019).Membershipadvantage.[online]Availableat: https://hia.com.au/Membership [Accessed 28 Mar. 2019]. Hiainsurance.com.au. (2019).Australian Home Warranty Insurance Cover | HIA Insurance Services.[online]Availableat:http://www.hiainsurance.com.au/Products/Business- Insurance/Home-Warranty-Insurance.aspx [Accessed 28 Mar. 2019]. LocalGovernment.(2019).Actsandregulations.[online]Availableat: https://www.localgovernment.vic.gov.au/council-governance/acts-and-regulations[Accessed 19 Mar. 2019]. Masterbuilders.com.au.(2019).MasterBuilders-AboutUs.[online]Availableat: https://www.masterbuilders.com.au/About-Us [Accessed 28 Mar. 2019]. Masterbuilders.com.au.(2019).MasterBuilders-AboutUs.[online]Availableat: https://www.masterbuilders.com.au/About-Us [Accessed 28 Mar. 2019]. Nathers.gov.au. (2019).Nationwide House Energy Rating Scheme |. [online] Available at: http://www.nathers.gov.au/ [Accessed 19 Mar. 2019]. Sustainability.vic.gov.au.(2019).Bettercommercialbuildings.[online]Availableat: https://www.sustainability.vic.gov.au/betterbuildings [Accessed 19 Mar. 2019].
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