Apply Legal Requirements & Manage Small Business Finances

1. Apply Legal Requirements & Manage Small Business Finances Lesson 4 Cert IV - M. S. Martin January 2012

2. 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

3. 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 andTerritorythrough an act of parliament or by regulations made under an act Cert IV - M. S. Martin January 2012

4. 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

5. Standards - www.standards.com.au 1 2 3 Cert IV - M. S. Martin January 2012

6. Building Standards – 1300 of Common 5…..? AS1684 Timber Framing Code AS3959 Construction of Buildings in Bushfire prone areas AS3660 Termite Management AS2870 Residential Slabs and Footings AS3600 Concrete Structures AS3700 Masonry Structures …but really, it depends on what your building…? Cert IV - M. S. Martin January 2012

7. Exercise – Part 1 • Potential Contract between ‘Expert Constructions PTY LTD’ and ‘All in Carpentry Services’ • The Builder has asked one of his regular contractors over to the office to price a job for him • 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” • 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” • (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” • (Contractor talking) “Anything else I need, any other info to the job?” • (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” • (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” • (Contractor talking) “Alright mate, lets say a lump sum, of $15,000, labour and materials included, you happy with that?” • (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” • 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

8. Exercise – Part 2 Establish: • From the original dialog, what is the ‘offer’ ‘acceptance’ and ‘consideration’ • Look at the original plan, and make a list of what you can establish as ‘fix out work’ (list of items) • Look at the new documents and see what has to actually be done within the ‘fix out work’ (list of items) • Are there any ‘standards or codes’ referred to anywhere on the documents? • 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

9. 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 below • Discuss and establish an argument from the contractors side as to “don’t do the job” • Discuss and establish an argument from the builders side as to “he must do the job” • 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

10. 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: • Establish when he should have stoped the conversation / contract and offered alternatives • 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 • Discuss overall Cert IV - M. S. Martin January 2012

11. 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 Cert IV - M. S. Martin January 2012