Business Law in Construction: Roles, Licensing, and Regulations Explained

Running head: BUSINESS LAW
Business Law
Name of the Student
Name of the University
Author Note

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.

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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

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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

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

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 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