Cert IV - M. S. Martin January 2012

Apply Legal Requirements & Manage Small Business Finances

Lesson 4

Cert IV - M. S. Martin January 2012

Todays Lesson

• Chapter 4 Building Law, Regulations, Australian Standards and the Building Code of Australia

• Practical exercise, incorporating contracts

Cert IV - M. S. Martin January 2012

The BCA

• The Building Code of Australia– Volume 1 – Class 2 to 9

Buildings– Volume 2 – Class 1 to 10

Buildings, Housing Provisions

• The Building Code of Australia is authorised as law in each State andTerritory through an act of parliament or by regulations made under an act

Cert IV - M. S. Martin January 2012

NSW list of ‘some common acts’ in relation to Building

• Home Building Act 1989• Housing Act 2001• Environmental Planning and Assessment Act 1979• Occupational Health and Safety Act 2000

– From 1 January 2012, new nationally harmonised work health and safety legislation commences in New South Wales. The new legislation will replace the Occupational Health and Safety Act 2000 and Occupational Health and Safety Regulation 2001.

– There is now ‘transitional arrangements’ in place by workcover• And the list goes on…… best reference

http://www.austlii.edu.au/au/legis/nsw/consol_act/• Which is the NSW consolidated acts, reference

Cert IV - M. S. Martin January 2012

Standards - www.standards.com.au1

2

3

Cert IV - M. S. Martin January 2012

Building Standards – 1300 of

Common 5…..?AS1684 Timber Framing CodeAS3959 Construction of Buildings in Bushfire prone areasAS3660 Termite ManagementAS2870 Residential Slabs and FootingsAS3600 Concrete StructuresAS3700 Masonry Structures…but really, it depends on what your building…?

Cert IV - M. S. Martin January 2012

Exercise – Part 1• Potential Contract between ‘Expert Constructions PTY LTD’ and ‘All in Carpentry Services’ 1. The Builder has asked one of his regular contractors over to the office to price a job for him2. The Builder says to the contractor, “we really have to get this price in today mate!, so I just need a lump sum from

you, its simple – just a fix out”3. At the meeting, the builder says, “I'm just pricing this top floor Reno, and I need you (the contractor) to do give

me a price for ‘all’ the ‘fix out’ items”4. (Builder talking) “Now I’ve got a plan here for ya mate, its um… CC-04, here ya go, that one shows the top floor”5. (Contractor talking) “Anything else I need, any other info to the job?”6. (Builder talking) “We’ve done heaps of these sort of jobs mate, I really just need you to measure up, and give me

that lump some, ‘all the fix out remember’ I have to commit myself here and you too, so don’t miss anything”7. (contractor talking) “ Ok mate, if you say this is all I need, just give me an hour and we’ll sort it out before I go”8. (Contractor talking) “Alright mate, lets say a lump sum, of $15,000, labour and materials included, you happy with

that?”9. (Builder talking) “ Oh…. If you reckon that's all up ok, I’ll see you in a few months, $15,000 it is. Now lets keep it

simple, I've got one of those fair trading contracts all filled out, just sign the front page for me, check the price first”

10. 6 months later its time for the contractor to do the fix out, he arrives on the job to start. The builder gives him a copy of the latest plans, and a scope of works and tells him to get started. The contractor has a brief look and thinks “wholly sh….” there’s heaps of work here, what am I going to do? I have to do the job, I signed the bloody thing….” “Maybe I can talk to the builder and we can work something out?”

Cert IV - M. S. Martin January 2012

Exercise – Part 2

Establish:1. From the original dialog, what is the ‘offer’ ‘acceptance’ and

‘consideration’2. Look at the original plan, and make a list of what you can establish

as ‘fix out work’ (list of items)3. Look at the new documents and see what has to actually be done

within the ‘fix out work’ (list of items)4. Are there any ‘standards or codes’ referred to anywhere on the

documents?5. Under the terms of the ‘Home Building Act’ (extract given for

reference) was there any time where the contractor may have ‘rescinded’? Under the terms of the ‘cooling off period’ if so state the section from the act. And when would this have to have been?

Cert IV - M. S. Martin January 2012

Exercise – Part 3

• Now lets look at this as a dispute (Remember in all of this, we are not legal representatives, this is a learning discussion)

• Looking at both sides and “if” the contractor should do the job or not?

• In separate groups looking at only your area 1,2 or 3 below1. Discuss and establish an argument from the contractors side as to

“don’t do the job”2. Discuss and establish an argument from the builders side as to

“he must do the job”3. Discuss and overview both sides briefly, then listen to the

arguments from 1 & 2, then decide who is correct in your opinion based on their arguments

Cert IV - M. S. Martin January 2012

Exercise – Part 4• Contracts - Now lets assume for the purpose of this exercise, the

contractor got screwed over in this instance and lost money on the job. As a second exercise, we’ll now have a look at the contract document itself and see what he could have done.

• Using the OFT contract for reference, look over this in detail and establish the clauses where the contractor could have safe guarded himself against the previous dispute, and:1. Establish when he should have stoped the conversation /

contract and offered alternatives2. List the relevant clauses in the contract where the contractor

could have made addition to them to safeguard (a) his price, and (b) future variations or alterations to the work

3. Discuss overall

Cert IV - M. S. Martin January 2012

References

• Competency reference text for ‘Apply Legal Requirements & Manage Small Business Finances’

• Web sites as listed below:• http://www.austlii.com/• www.standards.com.au