Legal Aspects of Building and Construction: A Project Analysis

This project provides a comprehensive overview of the legal requirements in the building and construction industry. It begins by outlining five main types of building contracts, including the Australian Building Industry Contract (ABIC), Australian Standard General Conditions of Contracts, Master Builders Association of Victoria (MBAV) Contracts, Federation Internationale des Ingenieurs Conseils (FIDIC) contracts, and New Engineering Contract (NEC), along with their respective applications. The project then details relevant Occupational Health and Safety (OHS) acts and regulations, emphasizing the obligations of both the Principal Contractor and employees. It further explores three essential types of insurance for builders: general liability, builder's risk, and professional liability. The project also discusses organizational policies and procedures related to discrimination and harassment, including commitment, policy development, barrier removal, case handling, and policy application. Additionally, it identifies key codes, acts, regulations, and standards such as the Building Act of 1975 (Queensland), the Building Regulations of 2006, and the Queensland Development Code. The project also covers licensing and registration requirements for personnel, and explains Australian Standards, specifically AS1720, AS3600, and AS4100. The project concludes with the essential details required in an invoice, relevant legislation for on-site construction and applicable environmental legislation, and a breakdown of insurance clauses and subcontractor information.

Running Head: CONSTRUCTION PROJECT 1
Title
Author’s name
Institutional affiliation
LEGAL REQUIREMENTS TO BUILDING AND CONSTRUCTION

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PROJECT
1)Briefly describe 5 main types of building and industry contracts with corresponding
situations when they are applicable.
 Australian Building Industry Contract (ABIC)-It recommends the use of plain
English.It is also suggested to be used on building works costing between $250,000
and $25 million where an architect is allocated the contract to do.
 Australian Standard General Conditions of Contracts-Made by various
government organizations, industrial and also scientific organizations. It caters for
either lump sum and contracts based on rates. It is preferred form of contract by most
government arms.
 Master Builders Association of Victoria(MBAV)Contracts-Developed by Masters
Builders Association of Victoria. It is used when one wants to enter into a contract
for altering, repairing, renovating or extending a home in the state of Victoria.
 Federation internationale des Ingenieurs Conseils(FIDIC) contracts.-They are
contracts made by the international federation of consulting engineers. They are
intended for use of major works.
 New Engineering Contract (NEC)-They are used in variety of works ranging
from major works to minor works.
2)List the OHS acts and regulations applicable in your state or territory. Include at
least five obligations of PCBU and employee under OHS legislation in the context of
the construction industry.
 Work health and safety Act 2012.
 Work health and safety regulation Act 2012.

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 Occupation Health and Safety Act 2017.
 Fuels control Act 1979.
 Machinery Act 1949
The owner of the business should provide good working conditions, ensure things are
used safely, give relevant machines that are safe and also make sure the employees
are insured.
On the other hand, employees should obey any instruction given to them that result to
their health, utilize the protective wear and clothing provided and not to put
themselves or others at risk knowingly CITATION Pat15 \l 1033 (Patrick X. W. Zou, 2015).
3)List and describe 3 types of insurances required to be able to operate your business
as a builder in accordance with legal requirements.
General liability insurance-takes care of damage on property and any harm on the
body of somebody involved in the construction.
Builder risk insurance-takes care of certain calamities such as fire, hail or any form of
explosion. Still it caters for theft and vandalism on the building project.
Professional liability insurance-caters for any defect on the building project that
results from professional ignorance or poor advice.
4)Explain 5 organizational policies, procedures related to discrimination
and harassment.
 Organization commitment. The organization should come out clearly and state its
stand concerning any form of discrimination and harassment and how it is
committed in ensuring its stand.
 Development of anti-discrimination and anti-harassment policies that well fits the

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organization. This should be done in consultation with employees.
 Preventing and removing barriers that act as barriers to curb discrimination and
harassment. People may not know about discriminating and harassment therefore
educating the employees and training them on such issues would be great.
 Receiving of cases of discrimination and harassment by the organization from the
employees.
 Application of the policies. Any case of harassment and discrimination should be
taken seriously, assessed and the policies developed applied.
6)State a total of 5 codes, acts, regulations and standards that are relevant to
building and construction.
 Building act of 1975 of the Queensland’s legislation
 Building regulations of 2006 related to the building act of 1975
 Queensland development code extending to scope of building codes of
Australia
 Queensland building and construction commission licenses
 Queensland building certification system
Include legislation for Victoria!
7)Explain 3 licensing or registration requirements applicable to personnel in the
building and construction industry.
 Certificate, degree or diploma in Building and construction and (or its related)
courses. This is to approve that one is knowledgeable in the building industry.
 Some years of experience in the construction industry. Different licenses have
different requirements of years. For example, to acquire Western Australia
building license one should have an experience of between 5-7 years.
 One should not have been barred from conducting business, work or any form of

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trade in the area. He must be approved to be someone of good conduct in the
country.
10) What are Australian Standards? Refer to the standards and explain what the
following standards cover:
a) AS1720-It provides design data for sawn and laminated timber, timer poles,
plywood and fastening types. It also provides standard test for components that are
atypical.
b)AS3600-It applies to operators of electricity networks and people involved in
design, installation and maintenance. It provides minimum requirements for design
and construction of concrete structures used in building. The requirements also apply
to structures containing reinforcing materials such as steel.
c)AS4100-. It provides minimum requirements for design, erection and modifying
steel structures. Does not apply to elements of steel less than 3mm thick, concrete
blocks and composite steel CITATION Gre13 \l 1033 (Smith, 2013).
Resubmit specific to the listed standards
11) List 5 important details that need to be included in an invoice for payment.
Website address.
Business or trading name
Postal address.
Email address and contact number.
Business number.
MELBOURNE HOUSING PROJECT.

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Legislation applicable to on site construction
 Building Regulations 2018-contains requirement relating to building permits,
building inspection and also permit of occupancy
 Activities Local Law-Has legislation that help minimize problems caused by the
building process
 Building Act 1993-provides for legislation that maintain required building
standards and safety and also regulation for building construction.
Applicable environmental legislation
 Building Act 1993-one of its objectives is to facilitate the building of
environment friendly buildings.
 Hazardous waste Act 1989-Provides for measures to deal with hazardous waste
from construction industry.
Form of Contract

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Australian Standard General Conditions of
Contracts
% of
Contract Price
Amount
$
Payments
and Stages
Contract to
build all stages
5% 15,000 Deposit
10% 30,000 Base stage
15% 45,000 Frame stage
35% 105,000
Lock-up
stage
25% 75,000 Fixing stage
10% 30,000
Final
payment
100% 300,000 Total
Section 2.2 Insurance clause
Insurance covers acquired by the project contractor or the company:
 Public Liability Insurance-covers for injuries on third parties and(or) their
properties.

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 Professional Indemnity Insurance-covers for damages caused by professional
negligence. Good for people providing advice on building projects.
 Constructors All Risk Insurance-covers on damages on the work and material
used like machines and tools.
Housing project
Roof
Type of subcontractor Number of subcontractors
Painters 6
Sheet metal workers 12
Roof carpenters 4
Interior Painters 8
Electricians 4
Carpentry workers 3
Plumbers 3
Foundation and floor Tiling 5
Excavation workers 4
Concrete workers 14

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REFERENCES
Patrick X. W. Zou, R. Y. (2015). Strategic Safety Management in Construction
and Engineering. New York: John Wiley & Sons.
Smith, G. W. (2013). Contractor Safety Management. Florida: CRC Press.