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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Business Law
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Business Law
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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 is important to have a licence or 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.
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 is important to have a licence or 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
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
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 is important to have a licence or 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
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 is important to have a licence or 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
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
The Victorian 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
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
The Victorian 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.
The aim of VBA is 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. Its objective is 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.
The Building Act 1993 controls the building activity in Victoria. It decides the
legislative framework for making regulations pertaining to construction, building standards
and maintenance of building safety features. The Objective of 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 the Victorian Building Authority in 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 builder may 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
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.
The aim of VBA is 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. Its objective is 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.
The Building Act 1993 controls the building activity in Victoria. It decides the
legislative framework for making regulations pertaining to construction, building standards
and maintenance of building safety features. The Objective of 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 the Victorian Building Authority in 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 builder may 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 Work is 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 the Unlimited Class, 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 the Limited 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 called Builders’ Registration in Victoria (Hia.com.au
2019). It is important to register for licence as 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.
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 Work is 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 the Unlimited Class, 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 the Limited 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 called Builders’ Registration in Victoria (Hia.com.au
2019). It is important to register for licence as 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 are different types of builders’ registration or 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 the Building 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
There are different types of builders’ registration or 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 the Building 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
constructors or workers for construction work in Victoria mast ask for a Victorian
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.
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
constructors or workers for construction work in Victoria mast ask for a Victorian
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 brother would 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
must have an ABN while ineligible person would be refused by the authority
(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. The Building Indemnity Insurance cost around $12,000
or more which includes the process of building a house renovating it and building an
Australian business number (ABN)
Bob’s brother would 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
must have an ABN while ineligible person would be refused by the authority
(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. The Building Indemnity Insurance cost 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).
The Home Warranty Insurance for construction projects expertise in delivering the
best quality warranty services to the residential building construction industry
(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 period is off of
6 years immediately counted after the overall completion of the construction work.
Contract Works Insurance or 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. It covers accidental risks which 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 Insurance indemnifies a builder, building surveyor, quantity
surveyor, building inspector, draftsperson and engineers as well as erectors, 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.
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).
The Home Warranty Insurance for construction projects expertise in delivering the
best quality warranty services to the residential building construction industry
(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 period is off of
6 years immediately counted after the overall completion of the construction work.
Contract Works Insurance or 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. It covers accidental risks which 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 Insurance indemnifies a builder, building surveyor, quantity
surveyor, building inspector, draftsperson and engineers as well as erectors, 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 as Builders Warranty Insurance
covers the homeowners who face issues with defective or incomplete building 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 brother would 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 allow Bob’s brother to 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, land owners and organisations entering into agreement involving
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
resolution and succeeds to recover outstanding payment under an agreement, without
requiring a lawyer. The Victoria Building Authority (VBA) observes and controls the activity
Domestic Building Insurance, previously known as Builders Warranty Insurance
covers the homeowners who face issues with defective or incomplete building 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 brother would 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 allow Bob’s brother to 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, land owners and organisations entering into agreement involving
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
resolution and succeeds to recover outstanding payment under an 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 Victoria is 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.au 2019). Commercial building owners as well as
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:
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 Victoria is 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.au 2019). Commercial building owners as well as
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
Influencing the policies pertaining to buildings in Australia
Making contributions to the preparation and revision of University courses related to
construction and building management (Aib.org.au 2019).
Demonstrating examples by way of achieving building awards for professional
excellence.
Promoting the profession of construction and building management and leaving a
significant contribution to the industry
Obtaining recognition as a chartered building professional (Aib.org.au 2019).
AIB memberships provide several benefits like professional recognition, 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
standard that is expected in terms of construction, cost, engineering among others
(Aiqs.com.au 2019).
The function of AIQS is:
Ensuring the required standard of training for construction work
Ensuring that the members are aware of the emerging issues that affects the industry
Influencing the policies pertaining to buildings in Australia
Making contributions to the preparation and revision of University courses related to
construction and building management (Aib.org.au 2019).
Demonstrating examples by way of achieving building awards for professional
excellence.
Promoting the profession of construction and building management and leaving a
significant contribution to the industry
Obtaining recognition as a chartered building professional (Aib.org.au 2019).
AIB memberships provide several benefits like professional recognition, 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
standard that is expected in terms of construction, cost, engineering among others
(Aiqs.com.au 2019).
The function of AIQS is:
Ensuring the required standard of training for construction work
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 the Housing Industry Association (HIA)
The Housing Industry Association (HIA) being the official face of Australian
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).
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 the Housing Industry Association (HIA)
The Housing Industry Association (HIA) being the official face of Australian
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
construction industry comprising of large and small firms of international, 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 brother needs to be conscious about the environmental conditions where he is
planning to start his construction project. He must learn how to tackle the adverse
environmental situations along with leaving adverse impact on the environment
(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.
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
construction industry comprising of large and small firms of international, 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 brother needs to be conscious about the environmental conditions where he is
planning to start his construction project. He must learn how to tackle the adverse
environmental situations along with leaving adverse impact on the environment
(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 brother must 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
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 brother must 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
National Construction Code
Environment Protection and Biodiversity Conservation Act 1999
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 the Building Act 1993. 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.
The Building Act 1993 controls the building activity in Victoria. It decides the
legislative framework for making regulations pertaining to construction, building standards
and maintenance of building safety features. The Objective of 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 Act 1995 governs the home building contracts in Victoria,
Australia. It talks about the amount that is required for making a deposit
(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)
National Construction Code
Environment Protection and Biodiversity Conservation Act 1999
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 the Building Act 1993. 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.
The Building Act 1993 controls the building activity in Victoria. It decides the
legislative framework for making regulations pertaining to construction, building standards
and maintenance of building safety features. The Objective of 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 Act 1995 governs the home building contracts in Victoria,
Australia. It talks about the amount that is required for making a deposit
(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), the National
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 Act 2004
The Occupational Health and Safety Act 2004 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
Previously it was known as the Building Code of Australia (BAC), the National
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 Act 2004
The Occupational Health and Safety Act 2004 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 the Accident Compensation Act that 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
The Project Development and Construction Management Act 1994 facilitates the
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 Act 1983 lays down the rules and regulations and standards for building
social housings in Victoria, Australia.
5. The Local Government Act 1989
The Local Government Act 1989 provides for the framework to establish and operate
councils in Victoria, Australia. It lays down provisions for:
Interest the council with the power to make and enforce local rules and regulations.
The levy of council rates and charges
Carrying out local council elections
Entitling residence and repairs to vote in council elections
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
meet the standards laid down under the Domestic Building Contracts Act 1995
The builder must consider the Accident Compensation Act that 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
The Project Development and Construction Management Act 1994 facilitates the
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 Act 1983 lays down the rules and regulations and standards for building
social housings in Victoria, Australia.
5. The Local Government Act 1989
The Local Government Act 1989 provides for the framework to establish and operate
councils in Victoria, Australia. It lays down provisions for:
Interest the council with the power to make and enforce local rules and regulations.
The levy of council rates and charges
Carrying out local council elections
Entitling residence and repairs to vote in council elections
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
meet the standards laid down under the Domestic Building Contracts Act 1995
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’s brother needs to follow the above guidelines as the legal
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
(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’s brother needs to follow the above guidelines as the legal
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.
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 | Enabling business. [online] Available at:
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). Why Join AIBS?. [online] Available at:
https://aibs.com.au/Public/Membership/WhyJoin/Public/WhyJoinAIBS.aspx?
hkey=46beaca9-dcb7-4c64-9fae-09f175acbb00 [Accessed 28 Mar. 2019].
Aiqs.com.au. (2019). About AIQS. [online] Available at:
https://www.aiqs.com.au/imis/AIQS_Website/About/About_Us/AIQS_Website/About/
About_AIQS.aspx?hkey=543b478b-fecf-412c-8836-6815796baa66 [Accessed 19 Mar.
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). Register for an Australian Business Number (ABN). [online]
Available at: 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].
References
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24BUSINESS LAW
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25BUSINESS LAW
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