Summary

Contracts and agreements

Contract documents are written documents that specify the duties, obligations, and work of the construction contract and are legally binding on the parties to the contract (owner and contractor). It is also important to ensure that you look carefully at all the documents contained in the agreement.

The contract documentation may place limits on the use of certain materials or on the other hand may specify that certain materials must be used. At times, the plans and/or specifications may note these materials and how they are to be used. This may be noted within the contract itself.

Liquidated damages usually represent pre-estimates of the loss they will likely incur if you do not complete the work on time. They are not meant to penalise you for finishing work late.

Subcontractors

Subcontractors vary from very small firms to large international firms. Subcontractors are hired by contractors and they specialise in a certain construction works, such as floor covering or mechanical or electrical work. Many subcontractors are involved in a number of concurrent projects, which can be challenge with finite resources.

Subcontractor requirements for a project can be determined by identifying, matching and verifying subcontract skills sets with project work requirements.

Claims against defective building work are a growing trend. The purpose of a construction quality control program is to prevent claims by ensuring good workmanship, the use materials fit for purpose, and proper documentation. The use of sub-contractors that do not have effective quality assurance programs increases the potential for claims for defective building work.

Subcontractors are represented by Australian Subcontractors Association (ASA), a member organisation open to any subcontractor operating in Australia. ASA provides support, information and ethical standards to subcontracting business in all areas⁵. ASA also supports its members to negotiate various commercial arrangements, including insurance, recruitment, accounting, finance, taxation, leasing and contracts. They can help members with how to increase cash flow and information regarding upfront payments for goods purchased, variations, unfair contractual terms and conditions, etc.

ASA collaborates with and has partnerships with a range of stakeholders, such as Small Business Commissioner, South Australian Office of The Industry Advocate , Specialist Contractors SA , and other industry associations, such as the Master Builders Association, the Civil Contractors Federation South Australia (CCF SA)  and the Australian Construction Industry Forum  (ACIF).

Work health and safety requirements

One of the employer’s primary duties under the Act is to provide 'such information, instruction, and training to, and supervision of, the employees as is necessary to enable them to perform their work in such a manner that they are not exposed to hazards'. The employee is expected to take reasonable care for their own health and safety and also the health and safety of others who may be affected by their actions.

Scheduling

A construction schedule is a timeline for every task and event in a construction project. The construction schedule is a fundamental part of the project planning phase, as it also defines the resources needed and the teams responsible for each task in the construction process.

Bar or Gantt charts are a commonly used way of graphically representing a project schedule. Relationships and dependencies between tasks are shown graphically by the positioning of the bars. The plan of the project will determine the sequence of the activity. In any project, several different sequences could be used to accomplish the project, depending upon the strategy of the supervisor, considering the project conditions.

5 steps to make a construction schedule

1. Get info and tools: You will be able to set the start date of your project after you have met with regulatory authorities or private certifiers. The permits needed for projects can vary depending on project form, location, and project size. To obtain the requisite approvals, you must efficiently recognise and communicate information with the relevant regulatory authorities. Organise resources (human resources, such as subcontractors and workers; and materials, tools and equipment) and communicate with stakeholders and participants regarding needs, preferences, budget, etc. Communication is key to the success of a construction project as it ensures a clear understanding of stakeholders’ preferences, subcontractors’ and materials’ availability.

2. Collect and prioritise tasks: Once you know the context and tools, set up the project and break it down into steps.  You can use a work breakdown structure (WBS) to get a handle on the size and scope of your project. You can create a WBS using Microsoft Excel.

3. Add duration: Add estimated start and finish date to each task. Depending on how long-term the project is, you’ll need to calculate into your construction schedule holidays and consider sick and vacation days for employees. You also need to consider subcontractors’ and suppliers’ availability, delivery times and other aspects which is often subject to change. It is best practice to have a buffer time to accommodate fluctuations. Keep your schedule realistic and allow enough time for each task to be completed correctly. 

4. Allocate and execute: Allocate the tasks to the different teams or people for accountability and to keep roles and responsibilities clear. Once you have the people assigned to the work, the construction schedule is ready to venture into the real world.

5. Review: Construction scheduling is highly complex and requires permanent monitoring. You’ll need to look over the construction schedule throughout all phases of the project to make sure your actual progress is in line with your plan. Look at your schedule daily and depending on your time, update frequently.

Controlling hazards and risk using the hierarchy of control

Before commencing tasks, all foreseeable hazards (for example, falling off a roof, falling objects) and actual risks (e.g. death, serious injury) should be identified and appropriate safety measures put in place (e.g. install guard railing, prevent access under a roof being constructed). Control measures are selected by working through steps 1 to 6 of the Risk Control Hierarchy. Some control measures are more effective than others. Control measures can be ranked from the highest level of protection and reliability to the lowest. This ranking is known as the hierarchy of control.

Hiring plant and equipment

There will be a need to hire plants or other equipment for most projects. Types of plant and equipment used in projects could range from small hand tools to large equipment for earthmoving. Small facilities used by the company's staff will be accompanied by instructions for use and, if necessary, training in the use of these facilities. Typically, a large plant will come with an operator trained in the use of this plant. It is necessary to be licensed to use this kind of equipment in most situations. This equipment must therefore be provided with its own insurance and insurance against public liability.

Temporary services

Temporary services and site accommodation requirements need to be determined as part of the plant and equipment requirements. Generally, these factors have been built into the quote, however, a site supervisor must be aware of these points in the planning process.

Removing existing services and hazardous materials

A common issue requiring action at the beginning of construction projects involves the removal of existing services and hazardous materials. The removal or alteration of existing services has been simplified by the accurate electronic location of existing underground services by specialist contractors. This has taken the guess work and uncertainty out of the activity.

Critical path of the project

The critical path method (CPM) is the most common scheduling technique used. The minimum completion time for a project is determined by this approach along with the potential start and end times for the project activities. The critical path method calculates the cumulative length of the activities along the path. This reflects the minimum time needed for a project to be completed. If the critical route is delayed, that would mean that the completion of the project would take more time.

Condition reports

A condition report is a report on the conditions of the site prior to the beginning of construction. This includes an inspection of the site, during which a site manager becomes aware of any possible issues that might occur.

In certain cases, to do building work on their own land, property owners and/or property developers will need access to adjacent lands. It is important to analyse the state of existing buildings and structures on adjacent site boundaries before starting a project. You will decide in this analysis whether these buildings or structures are already damaged or not.

• Project schedule template
• Dilapidation Report
• Building Process documents for NSW
• Building Process documents for QLD
• Building Process documents for VIC
• Building Process documents for WA
• Building Process documents for SA
• Building Process guidelines for TAS
• EPA Construction environmental management plan (CEMP) guidelines
• QLD Draft outline environmental management plan
• EPA Development checklist
• Sample Environmental report
• Example traffic management plan template
• Traffic management general guide
• Sample traffic management plan