Colombo School of Construction: Law & Legal Frameworks Assignment

This report, submitted by a student, provides a detailed analysis of the legal and regulatory aspects relevant to quantity surveying practice. It begins by examining contractual relationships between various parties, including clients, main contractors, and subcontractors, within a construction scenario involving a quarry company and a housing project. The report then explores the role of professional and regulatory bodies in construction projects, along with the professional liabilities faced by quantity surveyors. It delves into commercial legislation, payment processing, taxation, and consumer legislation, highlighting the legal requirements that project managers must be aware of. Furthermore, the report evaluates the application of financial laws, including insider trading, company law, and employment legislation. Finally, it addresses the legal requirements for protecting and managing confidential data, including responsibilities for data breaches and the consequences of non-compliance with legal regulations. The report utilizes examples to illustrate key concepts and provides an evaluation of the implications of imposing penalties for non-compliance.

LAW & LEGAL FRAMEWORK F
QUANTITY SURVEYING
Evaluation of Legislative Requirements and data protection in Quantity Surveying Practice
COLOMBO SCHOOL OF CONSTRUCTION TECHNOLOGY
M.G.HARSHA MADHUWANTHA
(CSCT20211589)

Law & Legal Frameworks Assignment 01
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Colombo School of Construction Technology M.G.Harsha Madhuwantha
Unit Code: H/618/1767
Law & Legal Frameworks for Quantity
Surveying
Assignment
Assignment Brief and Feedback Form
Learner name M.G.Harsha Madhuwantha
Student No CSCT20211589
Course title TEC HND in Quantity Surveying
Assessor name Mr. Mahesh Abeynayake
Internal Verifier name Ms. Darshani Amarabandhu
Unit number and title Unit 4- Law & Legal Frameworks for Quantity Surveying
Assignment title Evaluation of Legislative requirements and data protection in
Quantity Surveying Practice
Outcome number(s) and
statement(s) LO1(P1,P2) : LO2 (P3,P4)
Hand Out Date 27/03/2021
Formative Assessment Date 03/04/2021
Submission Date 17/05/2021
Learner declaration
I confirm that the work submitted for this assignment is my own and resource sources are
fully acknowledged.
Learner Signature Date Submitted 06/05/2021
CSCT stamp for Date Receipt of the Assignment

Law & Legal Frameworks Assignment 01
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Colombo School of Construction Technology M.G.Harsha Madhuwantha
Topic- Legislative requirements and data protection in Quantity Surveying Practice.
Scenario
XYZ Quarry Company (Pvt) Ltd is a limited liability company and it operates a metal crusher and
ready mix concrete plant in Kurunegala district. The company received the trade license and
Environmental Protection License (EPL) from relevant regulatory authorities. Its dust released to
air in the area. The dust and fume has caused ailments of the lungs of many villagers.
Mother Company of XYZ Quarry Company (Pvt) Ltd is XYZ Construction (Pvt) Ltd. XYZ Builders and
Construction (Pvt) Ltd has started their new Housing Project and they appointed Kamal as their
Project Manager of this new Housing Project.
XYZ Construction (Pvt) Ltd obtained services from another sub-contractor for their said housing
project. Also XYZ Construction (Pvt) Ltd entered in to a contract with Sakura Building Material
Suppliers (Pvt) Ltd” to purchase building materials. As a Project Manager, Kamal is required to
work with many government authorities, organizations as well as related companies. He is
required to handle matters relating to employees working in the project.
Moreover, the Board of Directors passed a resolution to authorize and give access to Kamal (as
the Project manager) to some of information and/or data of the Company and the ongoing
projects in order to facilitate him to carry out his duties effectively. The Board is aware of the fact
that some information is confidential.
You should:
a) Describe contractual relationships among parties including clients, main contractors and
subcontractors based on this scenario
b) Illustrate professional and regulatory bodies engaged in the construction projects and
describe on professional liabilities in QS practice.
c) Analyze commercial legislation, processing of payments and requirements of taxation,
consumer legislation of which Kamal should be aware when he is working with ABC
Building Material Suppliers (pvt) Ltd.
d) Evaluate application of financial laws and regulations including insider trading
legislation, company law, and employment legislation based on above scenario.
e) Describe the legal requirements on Law to protect and manage confidential data in the
Company and responsibilities for breach of confidentiality of data by Kamal. Illustrate
with examples and evaluate and analyze the consequences on imposing penalties on
non-compliance with the legal requirements.

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Colombo School of Construction Technology M.G.Harsha Madhuwantha
Methodology
Each student will prepare a report covering all aspects given in the assignment. The document
must be in the form of a word-processed report and can incorporate any sketches or diagrams
to illustrate the answer. The report must have an introduction, body and summary. The
document must contain all references according to the Harvard referencing system.
Learning outcomes and Assessment Criteria
Pass Merit Distinction
LO1 Discuss the legal context of a quantity surveyor
D1 Evaluate the legislative
requirements in maintaining a fair
and equal commercial operation
P1 Describe the contractual
position of a quantity
surveyor
P2 Explain the legal
context of a quantity
surveyor working directly
for a client
M1Analyse the legislation
and regulations that a
quantity surveyor must
comply with in maintaining
a legally neutral position
LO2 Explain the management of confidential data
D2Analyse the consequences of a
data breach and the penalties
that may be incurred
P3 Describe the different
types of confidential data that
must be protected and
secured
P4 Illustrate the different
ways to avoid data breaches
M2 Evaluate a
contract in terms of
what data has to be
secured to comply
with appropriate data
protection laws
Plagiarism, Cheating and Collusion
Plagiarism, cheating or collusion is regarded as a serious
breach of the CSCT academic standards.
Students must carefully read the Academic Rules on Plagiarism, Cheating and
Collusion.
RULES WILL BE STRICTLY ENFORCED

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Colombo School of Construction Technology M.G.Harsha Madhuwantha
Grading
Opportunities
Assessment Criteria/Indicative Characteristic Evidence Achieved
(Y / N)
LO1
P1 Describe the contractual position of a quantity surveyor
P2 Explain the legal context of a quantity surveyor working
directly for a client
M1
Analyze the legislation and regulations that a quantity
surveyor must comply with in maintaining a legally neutral
position
D1 Evaluate the legislative requirements in
maintaining a fair and equal commercial operation
LO2
P3 Describe the different types of confidential data that must
be protected and secured
P4 Illustrate the different ways to avoid data
breaches
M2 Evaluate a contract in terms of what data has to be
secured to comply with appropriate data protection laws
D2 Analyse the consequences of a data breach and the
penalties that may be incurred
Assessor Comments
a)
b)
c)
d)
e)

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Colombo School of Construction Technology M.G.Harsha Madhuwantha
Criteria Awarded Distinction (D) Merit (M) Pass (P)
Assessed by (name): Mr.Mahesh Abeynayake
Signature: Date Assessed :
Assessment has been internally verified for use.
Internal Verifier
Name : Ms.Darshani Amarabandhu
Signature : Date Verified :

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Colombo School of Construction Technology M.G.Harsha Madhuwantha
Acknowledgement
This brings me great pleasure for an opportunity to work & submit this assignment. For this, I
would like to give my deep sense of gratitude & thanks to everyone who gave me their great
support to complete this assignment in success. I am very much thankful to Mr. Mahesha
Abenayaka & Mrs, Buddhini for their constant guidance & valuable encouragement. Finally, I
wish to express my thanks towards my parents & friends for their kind cooperation & unceasing
encouragement which help me in completion of this assignment.

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Colombo School of Construction Technology M.G.Harsha Madhuwantha
Introduction
Quantity surveying profession is considered as an important position in construction industry.
This is because Quantity Surveyor required to advice clients with different sections about
procurement, value management, contracts and so many things regarding construction law. Legal
education is no longer exclusive to law students. A qualified Quantity Surveyor must be
adequately trained to advice on all aspects of construction costs, financial and contractual
administration. The contractual position of a quantity surveyor is very important when working
as a client quantity surveyor. Relationship among parties, Professional bodies & Regulatory
bodies of construction industry, Professional Liabilities & Legal Context of quantity Surveyor
are to be discussed.
Every Company in the world consist with confidential data. Here in this report discussed about
what are the confidential data have to be protected, Different ways to avoid data breaches & Law
regarding data protection.

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Colombo School of Construction Technology M.G.Harsha Madhuwantha
Contents
Assignment Brief & Feedbak form ............................................................................ 1
Acknowledgement ..................................................................................................... 6
Introduction ................................................................................................................ 7
Contents...................................................................................................................... 8
Task A ........................................................................................................................ 9
Contractual Position of a Quantity Surveyor .......................................................... 9
Professional and regulatory bodies engaged in the construction ......................10
Professional Liabilities. .....................................................................................11
Legal context of a quantity surveyor ....................................................................12
Application of financial laws .............................................................................14
Company Law ....................................................................................................15
Employment Legislation ....................................................................................15
Task B ......................................................................................................................16
Confidential data that must be protected and secured ..........................................16
Ways to avoid data breaches .................................................................................17
Law to protect and manage confidential data .......................................................18
Summary ..................................................................................................................20
References ................................................................................................................21

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Colombo School of Construction Technology M.G.Harsha Madhuwantha
Task A
Discuss the legal context of a quantity surveyor (LO 01)
Contractual Position of a Quantity Surveyor
Quantity surveyors profession assumes an important role in the construction industry. This is
because it is required to provide clients with advice and services associated with procurement,
value management and cost of projects from inception to completion, contract administration and
project management. Quantity surveyors also provide clients with costing and work with projects
from inception to demolition. A Qualified Quantity Surveyor involve in advice on all aspects of
construction costs, financial and contractual administration. Below shows some of the functions
of a Quantity Surveyor
• Provide estimates of costs during the initial stages of the process of construction
procurement for the project initiators and during construction.
• Analyze tenders, prepare and analyze cost data and perform contract administration.
• Advising the client on the various contractual methods available and the choice of the
contractors valuing the completed work of the contractor.
• Preparing final accounts of the construction project.
• Controlling the cost of labor, plant and materials
• Perform risk, value management and cost control during construction.
• Advise on a procurement strategy.
• Identify, analyze and develop responses to commercial risks.
• Provide advice on contractual claims and disputes.
• Offer advice on property taxation
• Provide post-occupancy advice, facilities management services and life cycle costing
advice
• Assist clients in locating and accessing additional and alternative sources of funding
The function of the Quantity Surveyor within the construction industry is multi-disciplinary and
is expected to meet the demands of the construction projects’ complexities and sizes. Many
quantity surveyors have diversified into providing project and building management services
According to the scenario the client and the main contractor is XYZ Constructions (Pvt) Ltd.
XYZ Construction (Pvt) Ltd obtained service from another Sub Contractor.
Agreements between contractors and subcontractors are governed by the law of contracts. The
relationship between contractors and subcontractors is one that usually arises when a
contractor bids on a large construction project. Because it's often impossible for a contractor to
do all the work required for a large project, the contractor will contract with a subcontractor to

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supply extra labor and materials.
Professional and regulatory bodies engaged in the construction
Professional bodies are organizations that comprises members who are professionals in a specific
sector.
Professional bodies typically seek to further the interests of their profession and members. They
may also set standards for ethics, performance, competence, insurance, training and so on, that
must be met to remain within the profession (wiki, 2020)
Major tasks for the professionals in construction project is to execute all their professional
works, according to the terms of the contract of engagement.
Central to the purpose of professional bodies is to provide trust.
Professional bodies set standards, technical and ethical, that must be achieved and they ensure
that they are maintain and enhance through the professional’s career. This supports the public
trust. Below shows a list of construction professional bodies.
1. Construction Industry Development Authority (CIDA)
2. Construction Industry Development Fund and Fund Authority
3. National Advisory Council on Construction.
4. British Institute of Interior Design (BIID)
5. Royal Institute of British Architects (RIBA)
6. Royal Institute of Chartered Surveyors (RICS)
The true value of a professional body can in reality only ever be tested against the counterfactual
statement: What if it didn’t exist? (Green, 2015)
Regulatory strategies encompass a wide variety of approaches from regulatory bodies depending
on their legislative framework. There may be very detailed requirement and rules or in some
cases general expectations are made available to the operating organization through less formal
channels which may include published guidance material. Some member states employ goal
setting in their requirements whilst others prefer to specify codes, standards and guides which
must be adhered to by the contractor (Agency, 2000)
A regulatory body may have a strategy concerning its expectation regarding the staffing,
structure and organization of an operating organization. Specific areas which could be included
in strategy approaches may cover the scope of contract work, application and approval of a
quality system for a contractor, contractor training and accreditation, vendor approvals,
inspection regimes and the management of contractor activities (Agency, 2000)
• Depending on the system in place in the member state, the regulatory body consults its
regulatory strategy with stake holders.
• The regulatory body explain the regulatory system and strategy o meetings, workshops,
conferences which are attended by operating organization and contractor staff.
• The regulatory body inspects the contractors on site and, as appropriate at cooperate
offices and factories away from the site in conjunction with the operating organization.

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Colombo School of Construction Technology M.G.Harsha Madhuwantha
Professional Liabilities.
1. Express & Implied Terms
The employment of a construction professional for services in relation to the design and
execution of construction projects arises from his appointment by the Employer or by
someone authorized on his behalf to make the appointment. The express and implied
terms of the appointment govern the rights and obligations of the parties; the express
terms are of course the starting point. If an appointment is made in a relatively informal
way, such as exchanging letters with or without incorporation by reference of a
professional institution’s conditions of engagement or other terms, it is important to
stipulate whether the terms of the incorporated document are intended only to apply to
the payment provisions or to the conditions of engagement as a whole, for example
including the arbitration agreement, if there is one. Since an external (i.e. not in-house)
construction professional in private practice is in law an independent contractor, he is
entitled to be left free, in the absence of express provision to the contrary, to carry out the
incidental duties necessary to achieve the purpose for which he has been appointed in the
way which seems best to him (Russell, 2006)
2. Nature of Duty
It used to be the case that a construction professional’s duty to their client, like that of
other professionals such as solicitors, lay purely in contract, and not in tort.
One of the most important results of this was that, for the purposes of limitation, time
began to run at the date of the breach of contract and not, as in the tort of negligence,
from the often much later date when damage occurred or could reasonably have been
discovered. There is now universal judicial agreement that the liability of a professional
person to their client arises both in tort and in contract (Russell, 2006)
3. Standard of Care
4. Continuing duty and limitation
The duty of design in a construction contract is essentially a continuing one where the
construction professional’s employment continues during the supervision stage (Russell,
2006)
5. Measure of Damage
If an error in the design is discovered at an early stage, the Employer should normally, as
part of the duty to mitigate loss, give the professional an opportunity to correct it
(Russell, 2006)