Nachattar singh

Nachattar   Kanaan Youkhanna 27/01/202

RESUBMIT

Student should resubmit Task 2 Part B only.

Where is Part B ?

Nachattar

A sole trader is an individual who establishes their own business in which responsibility for the running and operation of the business is theirs alone. As a contractor, you can be an individual (sole trader) or working in your own company, partnership, or trust. You can be an independent contractor, sub-contractor. Contractors have different tax and super obligations to employees. As a contractor, you’re running your own business.

*The legislation and regulatory requirements that apply to the operations of the business

Insurance requirements-This information describes the indemnity and insurance requirements that must be written into all contracts.

Indemnity-Contracts must contain the following clause:

The contractor hereby indemnifies the State of Victoria its employees, servants and agents and the school council and its employees, servants and agents against all claims, liability or expenses (including legal costs) relating to any injury to persons or any loss or damage to any property caused (or to the extent contributed) by any act or omission of the contractor or its employees, servants or agents, except to the extent that the loss is directly attributable to the negligence of the State of Victoria, the school council or their employees, servants or agents.

It is not necessary for the State of Victoria or school council to incur expense or make payment before enforcing a right of indemnity conferred by this contract.’

Public liability insurance

All contractors must have current workers compensation and public liability insurance (the

Department’s stipulated minimum cover for public liability is $10 million).

Professional indemnity insurance

Contractors supplying advice, for example, architects or engineers must:

supply evidence of professional indemnity insurance in an amount of no less than $5 million per any one event and in the aggregate

produce evidence from their insurer showing that the insurance is current and covers the professional services being supplied

Registration of qualifications/ legislation and regulatory requirements for: –

*Domestic builder or contractor–

You must be registered with the VBA in Victoria to: If you do domestic building work under a corporate entity, then one of the directors of that entity must be registered. Your application for registration must be processed and confirmed by the VBA before you start work – it is not enough for you to have simply submitted an application for registration. If you are not registered, it is an offence to enter into a contract to perform work that requires a registered building practitioner, and to carry out that work. You may face a range of penalties.

*OHS (Occupational health and safety) is concerned with protecting the safety, health and welfare of people engaged in work or employment. The enjoyment of these standards at the highest levels is a basic human right that should be accessible by each and every worker. OHS requirements through safe work practices at any on or off-site construction workplace. It requires the performance of work in a safe manner through awareness of risks and work

requirements, and the planning and performance of safe work practices with concern for personal safety and the safety of others.

*Financial Legislation–Construction finance is a type of business funding designed to support contractors, sub-contractors and those working in the construction industry. It can be used to fund new projects, pay suppliers speedily, purchase new construction equipment and machinery and boost working capital. A project finance transaction structure is a limited- purpose operating business structure that consists of one or more limited-purpose entities (LPEs) that can collectively undertake construction and operation of assets. The main sources include equity, debt and government grants. Financing from these alternative sources have important implications on project’s overall cost, cash flow, ultimate liability and claims to project incomes and assets. Construction finance bridges the gap between completed or partially completed work and your customer paying you. Once you have outstanding billing — such as an uncertified application for payment, staged invoice or sales invoice — you submit it to the construction finance lender.

Once the lender is happy with the information you’ve provided, they provide a prepayment (effectively a construction loan), normally within 24 hours. This process often takes place online.

The prepayment varies depending on how creditworthy your customer is and other factors such as your annual turnover, credit history and number of debtors, but can be as much as 70% of the total value of your application for payment. Some facilities give you the option to get an advance against a specific invoice or application for payment, or finance your entire sales ledger.

You can use the cash for any business purpose.

If you raise new applications for payment or new invoices, new advances are made.

It’s possible to get construction finance even if your contract is complex and there are contractual debts, project-based transactions, retentions, or extended payment terms. You could be eligible for construction finance if any of the following apply to you:

You’re the main contractor or subcontractor.

You raise applications for payment (even uncertified).

You raise invoices for stage payments for incomplete contracts.

You have a CIS UTR number.

*Building & Construction legislation and codes-The Australian Building Codes Board (ABCB) has released the National Construction Code (NCC) 2019 Amendment 1, to be adopted by all states and territories from 1 July 2020.

NCC 2019 Amendment 1 includes:

a new provision in NCC Volume One regarding egress from early childhood centers

a new provision to require that a process be followed to improve the quality of, and documentation for, performance solutions. This change will come into effect on 1 July 2021

an update to the Governing Requirements for all Volumes to require labelling of aluminum composite panels in accordance with SA Technical Specification 5344. *The Minister for Planning announced a prohibition on the use of the external wall cladding products ACP and EPS for any building work in connection with buildings of Type A and Type B construction, effective 1 February 2021.

clarification of the concession in NCC Volume One that permits the use of timber framing for low-rise Class 2 and 3 buildings

clarification in NCC Volume Two that anti-ponding board requirements only apply to roofs where sarking is installed

correction of minor errors.

Although the process for documenting Performance Solutions set out in NCC 2019 Amendment 1 will not come into effect until 1 July 2021, appropriate documentation for Performance Solutions should be occurring now and the process outlined in Amendment 1 can be used for this purpose.

Building Code of Australia (BCA)-The Building Code of Australia (BCA) provides technical provisions for the design and construction of buildings and other structures through the National Construction Code (NCC). It allows for state variations to provide additional requirements or cater for specific community expectations. This means the code defines the way of achieving a specified outcome without prescribing a particular method.

*Environmental and sustainability requirements-Sustainable construction means using renewable and recyclable materials when building new structures, as well as reducing energy consumption and waste. The primary goal of sustainable construction is to reduce the

industry’s impact on the environment.

HOW TO MAKE BUILDING SUSTAINABLE-

Building with sustainable materials

wood; properly managed forests don’t just supply building materials, but also provide a

habitat for wildlife

sustainable concrete; alternatives with plastic and recyclables can reduce the carbon dioxide production by almost 50%

alternative brick materials; mud, wool, even cigarette butts can be used to create bricks that just as strong without a need for the kiln fires that result in harmful emissions.

*Industrial relation law–The Industrial Relations Reform Act 1993 allowed workplace disputes to be settled by enterprise bargaining between employers and unions in the workplace. If the dispute was not settled, the Australian Industrial Relations Commission could settle it. Right to be free from discrimination and harassment of all types and to be a safe workplace free of dangerous conditions, toxic substances, and other potential safety hazards; Right to be free from retaliation for filing a claim or complaint against an employer.

*Contract obligations–A contract is a binding agreement entered into between two or more parties. This agreement sets out the individual rights of the parties and the obligations to which they will be legally bound.

DEPENDENT OBLIGATION–You can be discharged from your contract if the other party does not perform their end of the bargain.

INDEPENDENT OBLIGATION–If the parties’ obligations are independent of each other, each party will be required to perform their duties irrespective of what the other party does.

CONCURRENT OBLIGATION–Concurrent obligations arise where performance by a party is a pre-condition for the other party to perform.

Awards & agreements

Minimum conditions at work can come from registered agreements, awards or legislation.

When a business has a registered agreement in place and it covers the work that the employee does, then the minimum pay and conditions in the agreement will apply.

If there’s no registered agreement that applies and an award covers the employer and the work

the employee does, then the minimum pay and conditions in the award will apply.

There are more than 100 industry and occupation awards that cover most people working in

Australia. This means many employees who aren’t covered by an agreement will most likely be

covered by an award.

Where no award or agreement applies, the minimum pay and conditions in the legislation willapply.

PAYROLL OR PAYMENT DETAILS IN CONTRACT–The 2 most widely used methods of payment are fixed fees and hourly or daily rates. Details about how these fees are calculated should be clearly set out in the contract.

Fixed fee – Sometimes you will be paid a single, fixed fee to perform an entire job. If the contract is long term, it may be worth including a review clause in the contract that enables your fees to be reviewed if business costs increase.

Hourly or daily rate – If you’re getting paid according to the number of hours or days you work, the contract should state how many hours make up a standard working day. You may also wish to specify how many days a week you’ll work. It should set out the fees that are payable for one hour’s work and/or one day’s work. The contract should always state whether GST is included in the fee (if GST is payable). Contracts that specify hourly or daily rates often require monthly payments.

Non-compliance in relation to all legal and regulatory requirements– Legal compliance refers to acting in accordance with the laws of a particular organization, company etc. while ethical responsibility is the choice to comply with the code of ethics of the organization, company etc. The skills and knowledge required to research information about compliance and ethical practice responsibilities, and then develop and monitor policies and procedures to meet those responsibilities.

Corrective action could be taken-A corrective action plan is basically a list of remedial actions for whatever has gone wrong or will obviously go wrong as per the current situation during construction. It might be developed by the contractor on its own or demanded by the client. Its contents will differ depending on the observations made and the discrepancies selected for mandatory correction.