Legal Obligations in Construction

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