Analyzing Legal & Regulatory Aspects of Construction Projects

This project analyzes the legal and regulatory requirements impacting a low-rise residential construction project. It covers the project's contract, including scope, type, and conditions. It also addresses builder licensing and business registration requirements, providing evidence of trade registration. The assignment further explains the necessary insurance cover, its purpose, and how to obtain it. It details the payment system for staff and contractors, emphasizing compliance with legislative requirements. Finally, it explains how GST laws are followed in relation to the selected project, including the application of GST on real estate and the relevant tax system act. Desklib is a platform where students can find similar solved assignments and study tools.

The following are the answers i have for the first three questions. I need help with the
others
Project Scope: 4 Bedroom, 1 media room, 3 bathrooms and a double garage.
I sent the 4 questions
This Workplace based Project requires to have access to a construction project (or
simulated project) and the documentation supporting the project, including contracts,
plans and specifications. The project may relate to the whole or part of a Class 1 or 10
Building or the whole or part of a Class 2-9 Building. This project is divided into three (3)
separate parts. In this part, Part A, you are required to identify legal and regulatory
requirements impacting on a low rise residential or commercial construction project.
Q1a. Analyse the construction project's contract. Outline, in your own words, the project
scope and parameters. Record your answer in the space provided below or in a Word
document that you can upload in the space provided.
Q1b. What type of contract was or will be selected for the project? Explain why.
Q1c. List at least two conditions of the contract (they may be in relation to approvals
required or financial matters or quality requirements). For each condition, document
what actions were taken to ensure the conditions were met and provide evidence of the
actions being taken. Record your answer in the table provided below or in a Word
document that you can upload in the space provided. Upload your evidence in the space
below.
Q2. What is the builder licensing and business registration requirements for the project?
Provide evidence of at least one (1) trade registration requirement having been
obtained. Record your answer in the space provided below or in a Word document that
you can upload in the space provided. Upload your evidence in the space provided
below.
Answer 2:
Builder licensing refer as a approach to ensures the long term process to implement the
safety measures under the construction sector. It is important for the builder to have
license which makes the easiest path for their work. It is essential to register the project
as it create the identity of the project. Individual contractors license is required for
implementing the construction project in Australia. As the project requires the licenses
which involves the consents, certificates for commencing the project.
Business registration requirement for the project are as follows:

first to select the business structure in the Australian law system the common structure
can be sole trader, Partnership and organization.
Sole trader In this structure business will not have other legal body therefore in such
case organization is only one who is a responsible for their business liabilities.
Partnership: As for the firm if they are operating their business by collaborating with
other then the profit is equally shared by both parties.
Organization: It is common structure in Australia as proprietary limited firm. In which
the company has their different legal body from their owner.
Trade registration requirement are as follows:
Home building Act 1989 (NSW) is the set of legal licensing requirement which is needed
for the construction project.
Select structure then to make register for the ABN it is the Australian business number,
it is the 11 digit number for the business registration this number will analyze the
business it is free service it is mandatory to register on This ABN number before
developing the accounts with the vendors (Tang and Chen, 2021).
After registering on ABN then the next approach is to register the name for the
business, as for the organization their business name is still not their until it approve by
the Australian securities.
If the organization wants to use their business name as trademark then it is often more
expensive as the official sites are given by the government through which the
businesses can approach to register for the trademark for their business.
For the GST registration there are certain guidelines in the laws which states as if the
businesses are earning the revenues more than 50000 dollars than they are tended to
pay for GST. But if the businesses are not earning more than the set amount then they
are not applicable to pay the GST.
Licensing and permission in Australia every state permits the license to the businesses
which can be differ on the basis of industries.
Q3. Provide evidence of the insurance cover that would need to be arranged for the
project. Explain how the cover can be obtained and its purpose. Record your answer in
the space provided below and upload your evidence in the space provided
Answer 3:
Project insurance cover include all the risks and list of damages associated with the
permanent or temporary task embedded into the contracts. It is the service which
states as the health plan could pay all the cost. As for the Australian law it is stated that
the businesses need to make sure that they have insurance which covers the natural
disasters, fire, robbery. Along with it is also important that businesses also need to
ensure that the legal aspects also included so that it will protect them if someone or
other businesses can conduct a lawsuit against them. Means for the organization it is

must have needed as their policies should cover the both public and product service
liabilities.
Construction project work insurance covers the materialistic damages, legal
policies also involves the accidental or physical damage compensation to the builders,
traders, contractors, workers. Policy also covers the risks as natural calamities cyclones,
earthquakes or accidental vulnerabilities factors (D’Amico, Pomponi and Hart,
2021). The main purpose of obtaining the insurance cover to minimize or manage the
risks. When the insurance is made for the project businesses will transfer the cost to the
insurance company in term of fee. As for this project the insurance can be public liability
insurance which is usually needed for the builders to give the security against any injury
or death. Builder insurance covers their usual liability insurance which can protect them
from any law suits or from the claims which can be arise from the client as property
damage or other causes (Othman and et.al 2021).
Q4. Describe the system used for administering payments to staff and contractors
associated with the project. How was the system established and how does the system
ensure compliance with current legislative requirements for the payment of financial
transactions? Record your answer in the space provided below or in a Word document
that you can upload in the space provided.
Answer 4:
In Australia independent contractor provide their invoices to get paid if client does not
provide payment or ignore their invoice then the contractor are able to sue or can take
the legal actions. The system for payment to the staff or contractors are Smart payroll
system which is more common in Australia to use to effectively payment to the staff or
contractors (Caniato and et.al 2021). As this system enables the project owner to
keep updated records, accurate tax slabs. It enables the safe and secure direct
depositing to the employee's account. This system is completely flexible and stores or
provides the backup data if data is lost then there will be no problem.
To develop the smart payroll system the given requirements are as follows:-
Initially to enter the staff identification number, as to hire the worker for the project it is
important to give them their identification number.
Then look for the local id check for processing the taxes.
It is important to know the difference between the independent contractor or staff as it
is not always clear as it impacts how to approach income taxes or the unemployment
taxes.

Next step is to preserve the paperwork of the staff as if there is new entry in the staff
then it is must to provide them federal income tax form.
Further process is to set the pay period it is sometimes examine by the state laws. Then
to carefully proceed to document the staff compensation process, then choose the
payroll system. Once all the information is inserted in the system it times for running
the payroll (Ahmed and Arocho, 2021). Therefore this system is developed
according to the legal rules which is implemented by the state government of the
Australia to give the effective payroll to the contractor or staff. If the contractor or staff
does not paid properly then they are liable to sue the client or take the legal advice to
resolve the matter.
As for the independent contractor they can paid under the lump sum contracts
which can be directly paid into the accounts only. These are not the payments which
the final payment for the contractor as the payment is only provided to the contractor
while the work is running as not being completed so that contractor will have the
enough amount to continue their work on the project. If there is something gone wrong
then the contractor does not have the right over the amount as it is not the part of lump
sum contract as payment is only made based on the contract.
Q5. Explain how laws relating to GST are followed in relation to your selected project.
Record your answer in the space provided below or in a Word document that you can
upload in the space provided.
Answer 5:
GST laws in Australia define as to implement the 10% tax on products and services or
the other goods which are sold in Australia. If the organizational business is registered
in the GST than the businesses are liable to collect the extra price from the consumers.
As for the construction project the GST would be applicable as 12% on real estate
before finishing its construction. Under New tax system act 1999 stated as once the
transition period for completing the construction processes is completed than it is
treated as other services. It implies that the GST process is applicable when the services
are invoiced (Othman and et.al 2021). As for the Australian guidelines for the
construction project the normal tax would be the one eleventh of the total property's
price. Different rules for the residential premises are not understood as a new in such
case in which they are rented out for more than five years, or the residential premises
are old then the property sale can be consider as the input tax. If the client is asking for

the credits of the GST for the cost made for the construction project then they have to
make the adjustment to take the credits. It is due to the not entitled into the GST
credits. Therefore, for the project the GST laws are implemented under such conditions
as the business is able to earn money more than 5000 dollars than they are liable to
pay the tax or if their business is not earning revenues which is less than the 5000
dollars then they are free to pay the taxes. Under the section 19 it states that the all
tasks and raw materials for the construction project are incorporated and will be affixed
on building sire. Then this value is reduced from the total supply value to analyses the
GST factors.
The following are the answers i have for the first three questions. I need help with the
others
Project Scope: 4 Bedroom, 1 media room, 3 bathrooms and a double garage.
Parameters: The project has a list of inclusions that the house will be made to. Anything
above that would be a variation where the client would pay the difference or at the
builders cost. Some of these inclusions include: - 10mm Gyprock to walls and ceiling -
x2 Garden taps - 1x internal gas bayonet The house is worth $369, 000
MBA NSW BC4 Residential Contract which includes Architectural plans, inclusions and
BASIXS. We use this because it supports both the builder and the home owner. This
gives the home owner details of the building company along with insurances. This
clearly outlines what inclusions the house will be built to with anything above this a
variation or at the cost of the builder. The Architectural plans details what will be built
with approved dimensions and drawings.
90 mm Cove Cornice 90mm Cove cornice was installed through out the home excluding
the bathrooms as we tile to the ceiling in bathrooms. Smart Tile Waste Instead of the
standard chrome, smart tile floor waste were installed in all bathrooms.

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D’Amico, B., Pomponi, F. and Hart, J., 2021. Global potential for material
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Caniato, M. and et.al 2021. A review of the thermal and acoustic properties
of materials for timber building construction. Journal of Building
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Othman, I. and et.al 2021. Barriers of value management implementation for
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Ahmed, S. and Arocho, I., 2021. Analysis of cost comparison and effects of
change orders during construction: Study of a mass timber and a
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Othman, I. and et.al 2021. The level of building information modelling (BIM)
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