Laws Regarding Constructions and Buildings Assignment 2022

Running head: LAWS REGARDING CONSTRUCTIONS AND BUILDINGS
LAWS REGARDING CONSTRUCTIONS AND BUILDINGS
Name of the Student
Name of the University
Author Note

LAWS REGARDING CONSTRUCTIONS AND BUILDINGS1
Answer 1
The Building and Construction Industry Security of Payment Act (NSW) that was
sanctioned in 1999 (mentioned in this assignment as the Act), is considered as the guideline
regarding the payments that must be made in the constructions and edifices industry. In relation
to this Act, the legislation that is known as the ‘security of payment’ was introduced. The above-
mentioned legislation was established to provide an appropriate safeguard to the persons
involved in the constructions and edifices industry, who all are entitled to receive payments. In
the Australian nation, the region of New South Wales, a state in Australia, is the first among
others to introduce the legislation known as the ‘security of payment’. It was incorporated in the
aforementioned Act. Various legislations that has been based on the ‘security of payment’
legislation have been adopted in all the parts of the Australian nation with an exception of only
two regions in the country. It means that the New South Wales state legislation regarding the
constructions and edifices industry can be considered as the father of all the other legislations.
The aforementioned Act and the legislation is in connection to the various parties who all
are involved in the chain of contracts in constructions and edifices industry. The particular
legislation mentioned above is for the defense of the minor groups or parties against the
exploitation of the groups or parties who are in a higher place in the chain of contracts. The
individuals or the groups or the parties who are positioned in a higher place in the chain have a
tendency to exploit the ones who are below them by not making the payments due to the minor
groups in a proper manner and within a given period. This Act was established to see to the fact
that the minor groups are not exploited by the major groups and that the payments shall be
received by the minor groups in an accurate manner and in a timely manner, for the work or
labor contributed by them in any given project. It has to be stated with utter disgrace that the

LAWS REGARDING CONSTRUCTIONS AND BUILDINGS2
minor groups of the chain of contract are exploited even in the presence of contracts and the
presence of the rights arising from such contracts. Hence, the aforementioned Act and the
legislation was established to give the minor parties the right and the privilege to claim their
payments to which they are entitled to. These rights are the right to interest if there is any kind of
mishap regarding the payments, the right to lien, the right to progressive payments and the right
to appendance of the job or labor, as the case may be1.
The working of the aforementioned Act and the legislation mentioned above is grounded
on the defense and the safeguard that must be provided to the minor groups, especially sub-
contractors and other small-time contractors, against the exploitation of payments caused by the
parties belonging to the major groups who are positioned in a higher place in the chain of
contracts. These parties herald the power to command the minor groups of the chain. Therefore,
the primary working of the Act mentioned above can be related to a cloak of protection and
safeguard for the sub-contractors and other minor contractors.
Answer 2
An analysis has been executed by the respective authorities regarding the exploitation
that has been going on in the industry of the edifices and constructions. Such analysis has proved
the fact that the level or the degree of exploitation that has been committed by the higher ups of
the chain of contract is high. It is beyond the imagination of any rational human being that how
much the minor groups of the chain and their families have been suffering because of such
consistent exploitation that has been deliberately committed by the major groups of the chain.
Hence, the introduction and the enforcement of the Building and Construction Industry Security
1 Brand, Michael Charles, and Thomas Uher. "Follow-up empirical study of the performance of the New South
Wales construction industry security of payment legislation." International Journal of Law in the Built
Environment 2.1 (2010): 7-25.