Legal Obligations Of Construction Contractors In Victoria

Obligations should be a key word for any individual undertaking any construction business. The Act on Contractor’s Obligations and Liability is usually applied when work is contracted in construction and construction-related activities. If the Rule of the Jungle was to apply anywhere and anyhow, where would we be as a country? Obligations are the boundary of what do and what not to do. This report has tabled the legal obligations of a Construction Contractor in detail.

OH&S should be the main obligation in every construction project by ensuring the contractor has a safety in place. Any construction site should have in place an OH&S policy programme as part of the preparation Safety Statement required by Section 20 of the Safety, Health and Welfare at Work Act 2005.

The OH&S safety policy should contain procedures such as:

• Firstly, the contractor should conduct effective hazard communication programs that consists of a written plan that lists what and where are the toxic chemicals in the site.
• Secondly, there should be risks management strategies employed by the contractor that involves training of employees before any construction work starts. The training should involve control measures and about risks that are site specific.
• Thirdly, the contractor should plan for emergency response systems like procedures for emergency escape, an emergency alarm in the site, an evacuation plan and also a rescue plan for any injured worker.
• Lastly, the contractor should provide proactive and preventive mechanisms for workplace safety. This will ensure that many accidents that might occur in construction will be avoided making workers safe.

During the late period of 19^th and early 20^th centuries, Australia underwent labour movement giving birth to statutory compensation. Therefore, it is a requirement by the government for a contractor to insure their employees for workers’ compensation (Jay, 2008). Each territory of the country has its own governing body and laws where institutions like Work Safe Victoria manages all of Victoria’s workplace safety system.

This compensation covers:

• Firstly, all the medical bills that involves worker-related injuries and diseases.
• Secondly, the salaries the worker was supposed to earn if they were not injured.
• Thirdly, the legal expenses should the worker present a lawsuit against the construction company.
• Lastly, a benevolent fund to compensate the dependants in case of death of any employee as a result of work related accidents.

The Safety, Rehabilitation, and Compensation Act 1988 is the legislative provision that makes workers get rehabilitation services as a result of work-related injuries or diseases.

The workers rehabilitation obligations include:

• Firstly, the contractor is liable to pay the rehabilitation services of a workers as a result of disability caused by work-related injuries or infections.
• Secondly, the contractor is also liable to pay the worker in case of any paralysis caused by work related injuries or infections.
• Lastly, payment of salaries that the worker was supposed to earn given as compensation.

In Australia in order to run a construction business successfully, one must be familiar with the Australian Consumer Law and Fair Trading Act 2012. Fair trading here means that contractors must be fair in terms of competing for construction work with the other contractors (David, 2002).  

The obligations of fair trading include:

• Firstly, the contract signed between a contractor and a client must be put in clear terms that everyone understands.
• Secondly, while always advertising be honest about the type of construction contracts that business handles.  
• Thirdly, the contractor should be able to provide all necessary receipts for the business. This may include receipts for paying workers, and even buying building materials.
• Lastly, the contractor must offer fair contract prices for construction works not only to compete for work but also one that is fair to the clients.  

The contractor has a legal duty to adhere to the general environmental protection obligations as stated in the Environmental Protection Act 1994.

The obligations of the contractor here are:

• Firstly, one should ensure that the business runs on a recycling policy. In construction sites wastes such as cement bags can be recycled for use again.
• Secondly, ensure that the employees support anti-idling measures. This is by making sure that employees turn off all idling equipment hence reducing emission of gases like carbon monoxide that contribute to climate change.
• Thirdly, the contractor should consider using green materials for building purposes. Green materials will reduce the demand for traditional building materials that are mined causing environmental degradation and pollution.
• Lastly, the contractor should be able to practice waste management. This is by ensuring that all wastes are disposed off correctly and not channelled to rivers or used in landfills.

Commonwealth and territorial laws in Australia usually overlap and limit any type of discrimination. In Victoria, the Equal Opportunity Act 2010 applies against discrimination. The Equal Employment Opportunity Commission (EEOC) is usually mandated with the task of investigating any discrimination charges and present them in federal court should there be a case to answer.

The discrimination obligations include:

• Firstly, any worker should not be treated unfairly on the basis of age, sex, race, religion, or even disability at any construction site.
• Secondly, the contractor should avoid harassing the workers based on race, gender, religion, and even disability.
• Thirdly, the contractor shall give all workers equal opportunities and shall do so based on the qualification of the individual.
• Lastly, the contractor shall not retaliate in case any worker decides to sue him.  

Conclusion

For there to be any sanity in any sector of the economy, it is important to have obligations as a torch bearer leading the way and make everybody see the future clearly. The building sector is such a delicate department as it deals with human life on a one on one scale. The buildings we live and work in are as a result of construction process. Obligations make construction contractors take that extra mile in order to produce quality work. So, between obligations vs contactors, who is the villain?

References

David, G., 2002. Running a Successful Construction Company. Connecticut: Taunton Press.

Jay, N., 2008. ConstructionScheduling : Principles and Practices. 2nd ed. London: Pearson Publishers.