Legal Obligations in Construction

This report tables an evaluation of the obligations of Construction Contractors in Victoria. The analysed obligations include OH&S, workers’ compensation, workers’ rehabilitation, fair trading, environmental, and equal opportunity. All the obligations were evaluated based on the law that governs the Victorian State and Australia in general.

LEGAL OBLIGATIONS IN CONSTRUCTION
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Executive summary
This report tables an evaluation of the obligations of Construction Contractors in Victoria.
The analysed obligations include OH&S, workers’ compensation, workers’ rehabilitation, fair
trading, environmental, and equal opportunity. All the obligations were evaluated based on
the law that governs the Victorian State and Australia in general. The data obtained shows
that obligations are a necessity in the Construction Sector and must be followed to the fullest.
Introduction
Obligations should be a key word for any individual undertaking any construction business.
The Act on Contractor’s Obligations and Liability is usually applied when work is contracted
in construction and construction-related activities. If the Rule of the Jungle was to apply
anywhere and anyhow, where would we be as a country? Obligations are the boundary of
what do and what not to do. This report has tabled the legal obligations of a Construction
Contractor in detail.
Occupational Health and Safety (OH&S).
OH&S should be the main obligation in every construction project by ensuring the contractor
has a safety in place. Any construction site should have in place an OH&S policy programme
as part of the preparation Safety Statement required by Section 20 of the Safety, Health and
Welfare at Work Act 2005.
The OH&S safety policy should contain procedures such as:
 Firstly, the contractor should conduct effective hazard communication programs that
consists of a written plan that lists what and where are the toxic chemicals in the site.

 Secondly, there should be risks management strategies employed by the contractor
that involves training of employees before any construction work starts. The training
should involve control measures and about risks that are site specific.
 Thirdly, the contractor should plan for emergency response systems like procedures
for emergency escape, an emergency alarm in the site, an evacuation plan and also a
rescue plan for any injured worker.
 Lastly, the contractor should provide proactive and preventive mechanisms for
workplace safety. This will ensure that many accidents that might occur in
construction will be avoided making workers safe.
Workers’ compensation obligations.
During the late period of 19th and early 20th centuries, Australia underwent labour movement
giving birth to statutory compensation. Therefore, it is a requirement by the government for a
contractor to insure their employees for workers’ compensation (Jay, 2008). Each territory of
the country has its own governing body and laws where institutions like Work Safe Victoria
manages all of Victoria’s workplace safety system.
This compensation covers:
 Firstly, all the medical bills that involves worker-related injuries and diseases.
 Secondly, the salaries the worker was supposed to earn if they were not injured.
 Thirdly, the legal expenses should the worker present a lawsuit against the
construction company.
 Lastly, a benevolent fund to compensate the dependants in case of death of any
employee as a result of work related accidents.
Workers’ Rehabilitation obligations

The Safety, Rehabilitation, and Compensation Act 1988 is the legislative provision that
makes workers get rehabilitation services as a result of work-related injuries or diseases.
The workers rehabilitation obligations include:
 Firstly, the contractor is liable to pay the rehabilitation services of a workers as a
result of disability caused by work-related injuries or infections.
 Secondly, the contractor is also liable to pay the worker in case of any paralysis
caused by work related injuries or infections.
 Lastly, payment of salaries that the worker was supposed to earn given as
compensation.
Fair Trading obligations.
In Australia in order to run a construction business successfully, one must be familiar with
the Australian Consumer Law and Fair Trading Act 2012. Fair trading here means that
contractors must be fair in terms of competing for construction work with the other
contractors (David, 2002).
The obligations of fair trading include:
 Firstly, the contract signed between a contractor and a client must be put in clear
terms that everyone understands.
 Secondly, while always advertising be honest about the type of construction contracts
that business handles.
 Thirdly, the contractor should be able to provide all necessary receipts for the
business. This may include receipts for paying workers, and even buying building
materials.

 Lastly, the contractor must offer fair contract prices for construction works not only to
compete for work but also one that is fair to the clients.
Environmental obligations.
The contractor has a legal duty to adhere to the general environmental protection obligations
as stated in the Environmental Protection Act 1994.
The obligations of the contractor here are:
 Firstly, one should ensure that the business runs on a recycling policy. In construction
sites wastes such as cement bags can be recycled for use again.
 Secondly, ensure that the employees support anti-idling measures. This is by making
sure that employees turn off all idling equipment hence reducing emission of gases
like carbon monoxide that contribute to climate change.
 Thirdly, the contractor should consider using green materials for building purposes.
Green materials will reduce the demand for traditional building materials that are
mined causing environmental degradation and pollution.
 Lastly, the contractor should be able to practice waste management. This is by
ensuring that all wastes are disposed off correctly and not channelled to rivers or used
in landfills.
Discrimination obligations.
Commonwealth and territorial laws in Australia usually overlap and limit any type of
discrimination. In Victoria, the Equal Opportunity Act 2010 applies against discrimination.
The Equal Employment Opportunity Commission (EEOC) is usually mandated with the task
of investigating any discrimination charges and present them in federal court should there be
a case to answer.

The discrimination obligations include:
 Firstly, any worker should not be treated unfairly on the basis of age, sex, race,
religion, or even disability at any construction site.
 Secondly, the contractor should avoid harassing the workers based on race, gender,
religion, and even disability.
 Thirdly, the contractor shall give all workers equal opportunities and shall do so based
on the qualification of the individual.
 Lastly, the contractor shall not retaliate in case any worker decides to sue him.
Conclusion
For there to be any sanity in any sector of the economy, it is important to have obligations as
a torch bearer leading the way and make everybody see the future clearly. The building sector
is such a delicate department as it deals with human life on a one on one scale. The buildings
we live and work in are as a result of construction process. Obligations make construction
contractors take that extra mile in order to produce quality work. So, between obligations vs
contactors, who is the villain?
References
David, G., 2002. Running a Successful Construction Company. Connecticut: Taunton Press.
Jay, N., 2008. ConstructionScheduling : Principles and Practices. 2nd ed. London: Pearson Publishers.