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BSBSMB401A Establish Legal And Risk Management Requirements Of Small Business

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BSBSMB401A Establish Legal And Risk Management Requirements Of Small Business

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Course Code: BSBSMB401A
University: Victoria University

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Country: Australia

Question:
Discuss about the Building Construction Laws.
 
 
Answer:

Introduction
The building industry is a complex activity, which involves different activities. The renovation of the buildings is in most cases do happen and may result due to different reasons. Some of the major activities which result to the renovation is due to the change are use of buildings. In this case, the building may be changes from a particular initial use to another (Stephenson, 2012, p.45). This will result to the need for the change of the design parameters such as the measurements and structural stability. In addition, in that case, the building use may require more area and therefore lead to an increase of the dimensions. In addition, the tastes of the clients may also lead to the need for renovation. This is where the client needs some aspects to be in cooperated in the building where they were initially omitted. Generally, the renovation of the buildings will require compliance to certain rules and laws. These laws are there to ensure that the safety and health of the structure is maintained at any given moment (Pinson, 2005, p.87). In addition, the companies undertaking these renovations are required by the laws to comply with the laws. The laws are mostly focusing on the safety measures during the construction and also ensuring that the final occupants of the renovated building are safe. The responsibility of the complying with the laws is able to lay on the hand of several people. First, the clients and the contractors have the biggest role in ensuring that the rules and laws are complied with effectively. The laws are able to range from the general safety to the disability access, structural stability environmental impact and protection and construction compliance rules (Haidar, 2011, p.87). Moreover, the laws on the renovation are able to apply on the buildings where the construction works are being carried out. This means that other surrounding structures will not be affected by the rules which the renovating building have to comply with. Some of such structures, which are not affected by such laws, include the freestanding garden walls, paths, fences and even the drives. According to the case study of Fagg’s Mitre 10 hardware redevelopment, there are several areas where different laws have to apply in order to meet the required standards of renovation and refurbishment of the building.
Building construction laws
Construction compliance is one of the key law which the renovation of the buildings is  required to meet. According to this law, the structural element of the building must be strong to meet the different design aspect. For instance, in the case of the store case study, the building must have strong members which are able to sustain the different machines on the section. The law provides the provisions for the building to meet and the relevant authorities in construction must ensure the compliance before the renovation starts. In addition, the construction laws requires different designs yo have the key elements of design. This is done in accordance with the use requirement of each building. The law also requires the different elements which are able to sustain the safety of the personnel working and the final occupants to be met (Stephenson, 2012, p.75). This requirements requires the clients and the contractor to make the relevant applications. In addition, the law states that the qualified personnel must be contracted to carry out the works. This is in the aid to achieve quality work.
Secondly, environmental laws must be met whenever renovation works are being carried out. In the case study, the building requires some extensions of some key parts. The extensions should make sure that they do not interfere with the environment (Architects, 2013). Since the surrounding may have natural environment structures such as trees, the extensions should make sure that they comply in the preservation of such elements. In addition, the building renovation should ensure that the other member of society are able to live as required and their lives are not interfered with. Distraction such as noise and dust should be limited and ensures that they do not affect those other member of the society. The environmental rules ensure that the protection against air pollution, soil pollution and other pollution types is done properly (Hughes, Murdoch, & champion, 2015, p.71). The extension and refurbishment should ensure that it does not interfere with tree by cutting them down to add the location for the building.
 
In addition, personal safety is other key laws, which require to be met whenever the renovation are being carried out.  The laws states that their personnel working on the renovation must have their personal safety adhered to. According to these rules, the working conditions on the site must meet some key specification which are critical to their how safety. The personal safety laws require that the personnel in charge of the construction should train the workers on the way to take care of themselves (International Federation Of Accountants, 2001). This is in the aid to minimize the accidents on site. In addition, safety equipment are needed on the site and a qualified person to attend to the accident be trained. These are some of the key aspects, which the renovation of the building has to adhere to in relation to the construction. The on site safety is a requirements which is critical for the personal safety rules.
In addition, other law, which is critical during renovation, is the dumping and contamination laws. The contamination and dumping laws help-s to ensure that the debris which are achieved from the renovation are well dumped in a proper location. In addition, the law requires that the designated areas be set on the site where the debris can be placed before they are thrown out of the site (Haidar, 2011, p.57). Moreover, during the consideration of the debris, the law requires that the relevant personnel be considerate of the safety of the other in relation to the disposal of the material. This has to take care of the environment impact, which will be achieved through such disposal and therefore able to comply with the rules of disposal.
In addition, fire resistance compliance is another law, which the renovation of the building require to comply with. The case presents the renovation of a completed building meaning that it has electrical appliances and connection. The law on electrical connection requires that the power to be stepped down and therefore unable to harm the personnel working on the building (Hughes, Murdoch, & Champion, 2015). The client and the contractor must ensure that the workers are able to ensure their safety from the electricity is well maintained. In addition, the law requires that the proper signing on the electric areas be marked and demarcated well. This is an area which the concerned personnel has to comply and provide those signs.
Applicable types of contracts: Lump sum contract
By definition, a contract is a legal abiding document, which is written between the client and contractor and able to provide the specification and conditions for the construction works. One of the major type of contract, which can be applied on the case of building renovation, is the lump sum contract or simply the fixed price contract type (Forward, & Fergusson, 2013). The contract of this type is able to provide clear specification of the different items and the duration, which the work can be carried out until it is fully completed. In addition, on the contract, the whole sum of the carrying the work together with the profits and risks is all accumulated. This means that after signing the contract, the negotiations are cut and no further amount will be added on the project. This means that the contract is able to assume all the responsibility and risks of carrying out the said work. Therefore, in case of any abrupt changes on the schedule and cost, the contractor is able to bear the full risk and the client bears not risk at any time (Punmia, 2014, p.102). Since the terms of the contract are fixed, any changes on the cost are not presented to the client and this requires the contractor to consider any such changes which are likely to occur and include them in the quotation. In the case study of a renovation of a store, a specific duration of time will be required and the specific cost can therefore be estimated.
Cost plus contract
Another key contract, which can apply on the said case study of a renovation and refurbishment of a building, is the cost plus contract. This is a contract where the client and the contractor are able to agree on the specific issues and duties which each has to carry out. According to this contract, each person has specification of the works he or she has to undertake (Forster, 2013). The cost of this type of contract is not fixed and therefore actuals costs, any purchases and other expenses are agreed among the parties and the specific payment made and each given time (Hutton and Meyer, 2009, p23). Due to the sharing of the duties, the client and the contractor are able to share the risks which are involved in the construction of the building. The major element that is used to determine the amount of risks, which one is able to bear, is the amount of responsibility one has on the project. This means that the more the responsibilities one has the more the risks one has to bear. In addition, special information which has to include the responsibilities undertaken by the different parties has to be stated and the timeline which they have to take to finish the specific duties. In the negotiation of the costs, the contractor’s overhead costs and the profits are included on the final agreed amount.
 
References
HUGHES, W., MURDOCH, J. R., & CHAMPION, R. (2015). Construction contracts: law and management. https://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=981118.  
INTERNATIONAL FEDERATION OF ACCOUNTANTS. (2001). Construction contracts. New York, N.Y., International Federation of Accountants.
STEPHENSON, D. A. (2012). Arbitration Practice in Construction Contracts. Hoboken, Spon Press. https://public.eblib.com/choice/publicfullrecord.aspx?p=180989.
PUNMIA Dr.  B.C. (2014). A text book of Production Planning and Management.
HAIDAR, A. D. (2011). Global claims in construction. London, Springer. https://public.eblib.com/choice/publicfullrecord.aspx?p=799017.
HUTTON, M., & MEYER, L. (2009). Different types of comercial [i.e. commercial] building contracts. [Adelaide], Law Society of South Australia.
PINSON, L. (2005). Anatomy of a business plan: a step-by-step guide to building a business and securing your company’s future. Chicago, IL, Dearborn Trade Pub.
FORSTER, G. (2013). Building Organisation and Procedures. Hoboken, Taylor and Francis. https://public.eblib.com/choice/publicfullrecord.aspx?p=1583068.
FORWARD, F., & FERGUSSON, W. (2013). NEC3 and Construction Contracts. London, ICE Publishing. https://public.eblib.com/choice/publicfullrecord.aspx?p=4713865.
ARCHITECTS, A. I. O. (2013). The Architect’s Handbook of Professional Practice. Hoboken, Wiley. https://www.123library.org/book_details/?id=111487. 

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