Construction Law: Acts, Standards, and State Legislations in Australia

This report provides a detailed overview of construction law in Australia, exploring its various facets, including the National Construction Code (NCC) and other relevant acts. It examines the role of Australian Standards in the construction industry, emphasizing their impact on quality, safety, and efficiency. The report delves into the legal framework, outlining key legislations such as the Building Act, the Building and Construction Industry Payments Act, and the Fair Work Act. Furthermore, it analyzes state and territory-specific legislations, highlighting variations in licensing, contractual formalities, and statutory warranties. The report also addresses payment and security legislations, particularly those impacting subcontractors and contractors, ensuring fair payment procedures and dispute resolution. The document aims to provide a comprehensive understanding of the legal landscape governing construction activities in Australia, benefiting financial institutions, engineers, builders, and other stakeholders involved in the industry.

Running head: CONSTRUCTION LAW
Construction Law
Name of the Student
Name of the University
Author Note

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Introduction
The distinctive branch of Law that manages engineering, construction and other related
activities is called ‘Construction Law’. Taking construction law as backbone, other streams like
the employment law, planning law, commercial law, torts, etc. were originated. The law in
question has taken upon itself to cover a wide range of problems, such as negligence, guarantees,
securities, bonds, constructional claims, tender related issues, consultancy contracts, etc (Hughes,
Champion and Murdoch, 2015). Such laws focus on several participants, socially, economically,
legally and financially. Financial Institutions, Engineers, builders, architects, constructional
workers, industries, companies and other institutions can be called its prime benefactors and the
ones affected by it the most.
Australian Standards in Construction Law
It can be stated that for construction and building related laws, Australia has developed many
standards.1 Such standards directly affect the engineering and construction industries while also
factoring in the effectiveness of work, the quality, safety and the efficiency. In this case, a
document providing rules and regulations and a detailed overview of how these rules are
applicable on the varied lawful situations, would be called a ’standard’. The Building Code of
Australia is a culmination and record of all laws and standards that can be put to use in an
appropriate situation to counter subjects and also to maintain lawful actions, some of its uses are
specified below:
1 Burr, A. (Ed.). (2016). Delay and disruption in construction contracts. CRC Press.

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1. Maintaining the waterproofing system and constructing things necessary to support it in
buildings.2
2. Implementation of design in the disability access structures.3
3. Standards of products and production of test-modules for doors, windows etc.4
4. Standardizing and implementing designs for production of smoke detectors.
The lawyers in Australia have to follow a series of activities that come under the construction
law as a whole; they are drafting contracts and Advising, preparing agreements for joint venture,
recovery of debt, distribution of litigation and resolution, development and planning of various
applications with council members etc. It should be remembered that all such combinations are
only possible when approved by state, local and federal laws of the country.5
National Construction Code (NCC) and other Acts
The National Construction Code or the NCC was a code formulated by the Australian Building
codes Board (ABCB) that presents, in detail, the necessary requirements for architecting and
constructing a new building in Australia. It is seen that the code examines in the great detail, the
safety, amenity and any health related issues that can be connected with the said building and its
overall design. Within it are the Building Codes of Australia (BCA) and Plumbing Codes of
Australia (PCA) in the volumes 1 and 2 and the volume 3, respectively.6 The current amended
2 Murray, M. (2013). Corporate social responsibility in the construction industry. Routledge.
3 Zhou, Z., Goh, Y. M., & Li, Q. (2015). Overview and analysis of safety management studies in the construction
industry. Safety science, 72, 337-350.
4 Gan, X., Zuo, J., Ye, K., Skitmore, M., & Xiong, B. (2015). Why sustainable construction? Why not? An owner's
perspective. Habitat International, 47, 61-68.
5 Gan, X., Zuo, J., Ye, K., Skitmore, M., & Xiong, B. (2015). Why sustainable construction? Why not? An owner's
perspective. Habitat International, 47, 61-68.
6 Bailey, I.H., Bell, M. and Bell, C., 2011. Construction law in Australia. Lawbook Company.

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act is the version of NCC 2016 which has been lawfully accepted and followed by all states in
Australia. Keeping the NCC aside, several other ‘acts’ can be accounted for the advent of
Australian Construction laws, such as:
1. Building Act, 1975
2. Building Code of Australia
3. Building and Construction Industry Payments Act, 2004 (BCIPA)
4. Building and Construction Industry (Portable Long Service Leave) Act, 1991
5. Fair Work Act, 2009;
and several other acts.
Legislations Based on State and Territory
Apart from the acts stated above and the NCC, it is only natural that each state might have their
own rules regarding the laws of building in general. Such laws are made in a way that they can
cover sectors and issues like the Licensing, Contractual formalities, Registration issues, statutory
warranties in contracts, insurance etc. such laws and acts segregated among states are mentioned
below:
1. Victoria: Building and Construction Industry Security of Payment Act, 2002.
2. New South Wales: Building and Construction Industry Security of Payment Act, 1999 and the
Contractors Debts Act 1997.

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3. Australian Capital Territory: Building and Construction Industry (Security of Payment) Act,
2009.
4. Queensland: Building and Construction Industry Security of Payment Act 2004, Queensland
Building and Construction Commission Act 1991 and the Subcontractors’ Charges Act, 1974.
5. South Australia: Building and Construction Industry Security of Payment Act 2009 and the
Worker’s Liens Act, 1893.
6. Western Australia: Construction Contracts Act, 2004.
7. Tasmania: Building and Construction Industry Security of Payment Act, 2009.
8. Northern Territory: Construction Contracts (Security of Payments) Act, 2004.
State legislations for Payment and Security
Judging from above, it is pretty safe to state that states can have security and payment
legislations as well that primarily indulges only subcontractors and contractors.7 The framework
ensures that payment procedures are safe and righteously made and disputes and money recovery
can be made without a possible scenario of litigation.
7 Hughes, W., Champion, R., & Murdoch, J. (2015). Construction contracts: law and management. Routledge.

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References
Bailey, I.H., Bell, M. and Bell, C., 2011. Construction law in Australia. Lawbook Company.
Burr, A. (Ed.). (2016). Delay and disruption in construction contracts. CRC Press.
Gan, X., Zuo, J., Ye, K., Skitmore, M., & Xiong, B. (2015). Why sustainable construction? Why
not? An owner's perspective. Habitat International, 47, 61-68.
Hughes, W., Champion, R., & Murdoch, J. (2015). Construction contracts: law and
management. Routledge.
Murray, M. (2013). Corporate social responsibility in the construction industry. Routledge.
Zhou, Z., Goh, Y. M., & Li, Q. (2015). Overview and analysis of safety management studies in
the construction industry. Safety science, 72, 337-350.