Summary

Submitted by sylvia.wong@up… on Fri, 04/09/2021 - 19:06
Sub Topics

A legal requirement is something that is required or a necessary condition established by law or legislation. It includes all statutes, ordinances, regulations, licenses, permits, agreements, restrictions, or other prerequisites of any regulatory and legal authority, whether federal, state, or local.

Legislation is composed of the following:

  • Acts
    • A sequence of provisions containing statements and rules designed to give effect to a particular policy
    • An Act deals with all matters of importance for the implementation of a particular policy
  • Regulations
    • Subordinate legislation, also known as delegated legislation, is law made by the executive branch of government with the authorisation of Parliament. Subordinate legislation includes regulations, rules, by-laws, specific policies, proclamations and notices. These laws are made under an Act of Parliament.

Australian Contract Law

Instead of being based on statute law (legislation created by the Parliament), the Australian Contract Law is based on English common law. Common law is a body of law based on court decisions and accepted customs developed primarily by Australian courts and other courts adopting the common law, such as the United Kingdom.

The Australian Contract Law indicates that there are five (5) elements needed for a contract to become legally binding:

a diagram depicting Legally Binding Contract Elements
  1. Agreement: An agreement done through the concept of offer and acceptance is composed of a clear indication (offer) of a party (offeror) to be bound to contract terms. The other party (offeree) then accepts the offer (acceptance). A contract cannot be one-sided or unilateral, meaning both parties should agree upon the terms of the contract.

  2. Consideration: Consideration is exchanging something of appropriate value as compensation for undertaking and complying with the terms of the contract. Primary consideration is in the form of monetary payment but can be in any form, such as an appropriate service or property.

  3. Capacity: Capacity in contracts means that a party is able to enter into a legally binding contract, as there are instances that a person does not have the contractual capacity. Examples of groups that do not have contractual capacity include minors, mentally impaired and persons under the influence of alcohol.

  4. Intention: There should be explicit evidence that both parties intend their agreement to be legally bound to the contract law. When it is apparent, both parties are now under a legally binding contract and subject to legal obligations (and in case of contract breach, legal consequences) in their jurisdiction.

  5. Certainty: The contract and its terms can be clearly defined and enforced, not ambiguous in meaning, as this will pose confusion, especially during legal affairs. Both parties should agree upon all the terms of the agreement to be certain the agreement is understood well.

Once any of these elements are not present or are lacking, the agreement cannot be considered a legally binding contract. Therefore, these elements of contract formation can be considered a legal requirement through the Australian common law on contracts.

Australian Consumer Law

Australian Consumer Law (ACL) was enacted under the Competition and Consumer Act 2010. The ACL has a section that prohibits unfair terms in contracts with legal consequences. This protects all parties from being exploited or taken advantage of, as well as avoiding legal consequences. Therefore, it is a legal requirement to prepare terms in the contract in a manner that is fair for all parties of the agreement under the ACL.

Industrial relations

Industrial Relations is the system of employment laws and rules meant to control and manage all the rights, obligations, and relationships employers and employees have in the workplace. Industrial relations is necessary in today’s workplace as a harmonious relationship between the employers, and the employees are essential to maintain productivity. The Fair Work Act 2009 and the Fair Work Regulations 2009 is the main legislation that covers industrial relations in Australia.

Australian Human Rights Commission Act 1986

The Australian Human Rights Commission Act 1986 is the prime legislation for protection against discrimination and harassment inside the workplace. This Act lists requirements of employers on how to protect their employees from being discriminated or harassed. Aside from that, the following pieces of legislation provide legal requirements on particular types of discrimination and harassment:

Payroll in Australia

Australian businesses with combined wages above a threshold set by each state and territory are required to pay payroll tax and need to be aware of the Pay As You Go (PAYG) system. PAYG is an acronym used for the two different processes systemised by the Australian Tax Office (ATO) for businesses in Australia: PAYG instalments and PAYG withholding.

Building classifications

There are ten labels for building classifications, from Classes 1-10, covering the Building Code of Australia. Some of these classifications, like Class 1, have sub-classifications, referred to by a letter after the number (e.g. Class 1a). Building Classes 2 to 9 are covered mainly by Volume One of the NCC, while Class 1 and 10 are covered by Volume Two. Volume Three, the Plumbing Code of Australia, refers to all building classifications.

Some buildings classes require the appropriate registration or licence to perform construction work on those building classes. This ensures that the builder has adequate knowledge, skills, and experience when conducting building works.

Building approvals and permits

Building approvals and permits are used interchangeably in the construction industry. They are required before construction work begins, primarily domestic building works. Both serve the purpose of ensuring that the construction work:

  • Complies with building laws and legislation, including the BCA,
  • Will be safe and structurally sound, and
  • Will provide the required levels of fire resistance, amenity, energy efficiency, and if required, access for people with disabilities.

Environmental requirements

An environmental impact assessment (EIA) helps identify and recognise the impact of a development, such as a building and construction project, on the environment. In turn, the EIA will be a key indicator if a project should proceed or not.

Waste management requirements

The main legislation for waste management across Australia is the 2018 National Waste Policy: Less waste, more resources. The National Waste Policy provides a framework for collective action on proper waste management and resource recovery by businesses, governments, communities, and individuals until 2030.

WHS legislation

WHS legislation covers all the WHS acts and regulations enacted by the States and Territories of Australia. The WHS Legislation comprises of the Work Health and Safety Act 2011 and the Work Health and Safety Regulations 2011, as well as the Codes of Practice created under the Act and Regulation.

Codes of Practice

Codes of practice are not legislation, but rather a practical guidance material discussing how to comply with legal duties under the WHS legislation. They address particular issues and might not cover all the hazards or risks that may arise, compared to regulations that tend to be more formal as they are legal documents.

Security of Payment Legislation

Security of payment pertains to the certainty that a building contractor will receive proper payment as outlined in the construction contract. The legislation of the different states and territories on the security of payment aid in resolving payment disputes of contractors through adjudication. Adjudication provides protection for contractors with regards to their payments but has strict requirements on applications and timeframes. As legal requirements, you need to adhere to the conditions of the security of payment so that your contracts can be eligible for the security of payment.

Fair trading legislation 

Fair trading legislation covers fair business negotiation and agreements, including contracts. As one who engages in business agreements through construction contract, you must comply with the legal requirements outlined in the legislation.

Apply contract agreements

Once the contract agreements have been reviewed, agreed upon and signed, you then apply the contract agreement and must meet all of its conditions over the course of the construction. This is important as non-compliance is a contract breach and may lead to contract termination, or worse, legal action and consequence. Thus, properly complying with the contract is a must.

Insurances

Construction insurances are important for the safety of your workers, protection for your project as well as compliance with legal requirements. Carrying out construction without one, or with an outdated or expired one, is subject to legal action. Therefore, you must take the time to confirm all necessary insurance are current or updated. You should also find out if they are currently applied and covered by the insurance; otherwise, the insurance will not cover your workers even if they have one.

Awards

Modern awards, or simply awards, are legal documents that outline that minimum pay rates and conditions of employment, such as leave entitlements, overtime, and shift work. The awards are regulated by the Fair Work Commission and Fair Work Ombudsman.

Registered Agreement

A registered agreement is a document between the employer and their employees regarding employment and workplace conditions. The agreement must be approved by and registered with the Fair Work Commission.

Making training information available

As an employer, you should make information regarding training known to all your workers involved in training inside the organisation. This will help you and your organisation to be clear and transparent with the procedures and requirements with regards to traineeship and apprenticeship in your organisation. This includes the necessary documents, such as the training contract and the training plan.

Addressing complaints

Complaints in the workplace should be a serious matter as this will affect the construction project and your organisation as well. To not further complicate issues and conflicts in the workplace, you need to address complaints immediately, consult with the complainant, and resolve the issue with the best solution for all. In doing so, you will maintain good business or work relationship with others in the project and organisation, as well as not jeopardise the project.

Below you can access a collection of Model Codes of Practice, published on SafeWork Australia's website:

The following table shows the Australian Standards commonly used for building and construction. It is often worth viewing a summary of the content online to check if it covers what you are expecting and that you have the most recent version. Australian Standards are available for purchase through the Standards Store or distribution partners' websites. 

No. Date Title
AS/NZS ISO 717 2004 Acoustics — Rating of sound insulation in buildings and of building elements — Airborne sound insulation
AS ISO 717 Part 2 2004 Acoustics — Rating of sound insulation in buildings and of building elements — Impact sound insulation
AS 1056 Part 1 1991 Storage water heaters — General requirements (incorporating amendments 1, 2, 3, 4 and 5)
AS/NZS 1170 2002 Structural design actions — General principles (incorporating amendments 1, 3 and 4)
AS/NZS 1170 2011 Structural design actions — Wind actions (incorporating amendments 1, 2, 3, 4 and 5)
AS 1191 2002 Acoustics — Method for laboratory measurement of airborne sound transmission insulation of building elements
AS 1273 1991 Unplasticized PVC (UPVC) downpipe and fittings for rainwater
AS 1288 2006 Glass in buildings — Selection and installation
AS 1289.6.3.3 1997 Methods of testing soils for engineering purposes — Method 6.3.3: Soil strength and consolidation tests — Determination of the penetration resistance of a soil — Perth sand penetrometer test (incorporating amendment 1)
AS 1397 2011 Continuous hot-dip metallic coated steel sheet and strip — Coatings of zinc and zinc alloyed with aluminium and magnesium (incorporating amendment 1)
AS 1428 2009 Design for access and mobility — General requirements for access
AS 1530 1994 Methods for fire tests on building materials, components and structures — Combustibility test for materials
AS 1562 Part 1 2018 Design and installation of sheet roof and wall cladding — Metal
AS 1657 2018 Fixed platforms, walkways, stairways and ladders — Design, construction and installation
AS/NZS 1664 1997 Aluminium structures — Limit state design (incorporating amendment 1)
AS 1668 2015 The use of ventilation and air conditioning in buildings — Fire and smoke control in buildings (incorporating amendment 1)
AS 1670 2018 Fire detection, warning, control and intercom systems
AS/NZS 1680 Part 0 2009 Interior lighting — Safe movement
AS 1684 2010 Residential timber- framed construction
AS 1720 2010 Timber structures
AS 1735 1986 Lifts, escalators and moving walks
AS/NZS 1859 Part 4 2018 Reconstituted wood- based panels
AS 1860 Part 2 2006 Particleboard flooring — Installation (incorporating amendment 1)
AS 1905 Part 1 2015 Components for the protection of openings in fire-resistant walls
AS 1926 Part 1 2012 Swimming pool safety
AS 2047 2014 Windows and external glazed doors in buildings
AS 2049 2002 Roof tiles (incorporating amendment 1)
AS 2050 2018 Installation of roof tiles
AS 2118 2017 Automatic fire sprinkler systems
AS 2159 2009 Piling — Design and installation (incorporating amendment 1)
AS/NZS 2179 Part 1 2014 Specifications for rainwater goods, accessories and fasteners
AS/NZS 2269 Part 2012 Plywood
AS/NZS 2293 Part 1 2018 Emergency lighting and exit signs for buildings
AS/NZS 2327 2017 Composite structures
AS 2419 Part 1 2005 Fire hydrant installations
AS 2441 2005 Installation of fire hose reels (incorporating amendment 1)
AS 2444 2001 Portable fire extinguishers and fire blankets — Selection and location
AS 2665 2001 Smoke/heat venting systems — Design, installation and commissioning
AS/NZS 2699 Part 1 2000 Built-in components for masonry construction
AS 2870 2011 Residential slabs and footings
AS/NZS 2890 Part 6 2009 Parking facilities
AS/NZS 2904 1995 Damp-proof courses and flashings
AS/NZS 2908 Part 1 2000 Cellulose-cement products
AS/NZS 2918 2018 Domestic solid fuel burning appliances
AS/NZS 3013 2005 Electrical installations — Classification of the fire and mechanical performance of wiring system elements
AS/NZS 3500 Part 0 2003 Plumbing and drainage
AS/NZS 3500 2018 Plumbing and drainage
AS 3600 2018 Concrete structures
AS/NZS 3666 2011 Air-handling and water systems of buildings
AS 3700 2018 Masonry structures
AS 3740 2010 Waterproofing of domestic wet areas
AS 3786 2014 Smoke alarms using scattered light, transmitted light or ionization (incorporating amendment 1 and 2)
AS 3959 2018 Construction of buildings in bushfire-prone areas
AS/NZS 4020 2018 Testing of products for use in contact with drinking water
AS 4055 2012 Wind loads for housing (incorporating amendment 1)
AS 4072 2005 Components for the protection of openings in fire-resistant separating elements
AS 4100 1998 Steel structures
AS/NZS 4200 2017 Pliable building membranes and underlays — Materials
AS 4200 Part 2 2017 Pliable building membranes and underlays — Installation requirements (incorporating amendment 1)
AS/NZS 4234 2008 Heated water systems
AS 4254 Part 1 2012 Ductwork for air- handling systems in buildings — Flexible duct
AS 4254 Part 2 2012 Ductwork for air- handling systems in buildings — Rigid duct
AS/NZS 4256 1994 Plastic roof and wall cladding materials — General requirements
AS/NZS 4284 2008 Testing of building facades
AS/NZS 4505 2012 Garage doors and other large access doors (incorporating amendment 1)
AS 4552 2005 Gas fired water heaters for hot water supply and/or central heating
AS 4586 2013 Slip resistance classification of new pedestrian surface materials (incorporating amendment 1)
AS 4597 1999 Installation of roof slates and shingles (Non- interlocking type)
AS/NZS 4600 2018 Cold-formed steel structures
AS 4654 Part 1 2012 Waterproofing membranes for external above-ground use — Materials
AS 4654 Part 2 2012 Waterproofing membranes for external above-ground use — Design and installation
AS 4678 2002 Earth-retaining structures
AS 4773 Part 1 2015 Masonry in small buildings — Design (incorporating amendment 1)
AS/NZS 4859 2018 Thermal insulation materials for buildings
AS 5113 2016 Classification of external walls of buildings based on reaction-to-fire performance (incorporating amendment 1)
AS 5146 Part 1 2015 Reinforced autoclaved aerated concrete — Structures (incorporating amendment 1)
AS 5216 2018 Design of post-installed and cast-in fastenings in concrete
AS 5637 Part 1 2015 Determination of fire hazard properties — Wall and ceiling linings
AS ISO 9239 Part 1 2003 Reaction to fire tests for floorings — Determination of the burning behaviour using a radiant heat source

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