Briefly describe 5 main types of building and industry contracts with corresponding situations when they are applicable. |
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· The lump sum contract- it forms the traditional method of construction procuring making it the commonly utilized form of construction contract. This contract requires that a single whole price called lump sum price is generated and agreed upon initially before the construction or building project commences. It is mostly applicable where projects are well outlined and all tenders are well illustrated and categorized with limited changes to the project requirements enabling easy and reliable pricing of the entire project by the contractors. · The item rate or unit price contract- this contract applies the principle of items quantity estimation needed for a project and there corresponding prices per unit. Generally, this contract is applicable to definite resources utilized in a project but with indefinite quantities during contracting period which is to be made known upon completion of the design and construction of the project. · The cost plus fixed fee contract- it forms a cost reimbursement contract that allows for contractor payment of a negotiated fee which is mainly fixed during contract establishment period. The fixed fee is invariable to the actual cost but prone to adjustments in relation to changes in the desired work to be achieved within the contract. This contract is mostly applicable in situations whereby it is desirable to transfer successful contract performance risks from the contractor to the buyer. It is commonly utilized where purchased items cannot be adequately defined. · Lump sum and scheduled contract- in relation to lump sum contract, the intended completion of works as per the plan is achieved by the contractor for a certain fixed amounts in regards to the agreement. The required information is availed by the owner and an amount is charged by the contractor. Since it is lump sum but scheduled contract, the contractor is paid at specific outlined intervals in relation to the work progress on the basis of issued certificate by the engineer in charge. A schedule of rates is provided within the agreement in order to make additional or extra items. This contract is frequently applied in situations where the quantity of items are limited. · Cost plus cost percentage contract- it involves a payment method whereby an extra amount of money commonly expressed in percentage form, is paid by the client with an intension of covering the contractors overhead costs. |
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List the OHS acts and regulations applicable in your state or territory. Include at least five obligations of PCBU and employee under OHS legislation in the context of the construction industry. |
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· Work health and safety act 2011 · Dangerous substances act 2004 · Workers compensation act 1951 · Fuels control act 1979 · Machinery act 1949 |
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List and describe 3 types of insurances required to be able to operate your business as a builder in accordance with legal requirements. |
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Ø Public liability insurance. This insurance policy is aimed at protecting the third party from injuries during process of undertaking the building and construction duties, such as, passersby who might be hit by falling objects from a construction site. It again protects the neighboring properties from potential damages as a result of the ongoing building and construction. Ø Employer’s liability insurance. It legally forms a requirement to the limited company holders that aims at protecting all involved parties in a situation where an employee implementing building works could obtain an injury during attainment of his duties. Ø Installers all risk cover. This policy is aimed at covering all works conducted by the builder which might be accidentally destroyed prior to completion or before the owner could have a chance to extend his or her own personal policy to cover it. Most operating builders usually tend not to remember this policy thereby putting homeowners with big financial demands and bills. |
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Explain 5 organizational policies, procedures related to discrimination and harassment. |
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Ø Organization commitment. Policies should have clear statements relating to organizations efforts and commitment aimed at fighting discrimination and harassment behavior conduct while encouraging inclusivity. As it is stated in the Ontario human rights code, all human beings in an organizations is obliged to be free from discrimination and harassment. This commitments include the following; provision of training and education aimed at informing everyone about their responsibilities and rights, regular organization monetarization aimed at determining barriers relating to codes, effective complaints submissions procedures and proper promotion of desired codes of conducts. Ø Policy objectives. Policies should be generated in a manner that they set their own objectives, for example, promotion of human rights within the organization level, prevention of discrimination and harassment and proper definition of behavior principles and standards. Ø Policy application. Policies should clearly set out involved activities and the concerned parties it applies to in an employment set up. For example, code protections needs to be broadly interpreted so as to include staff on contract and temporary basis together with volunteers. Employees are protected from harassment and frustrations from fellow workers, there seniors and other incorporated parties such as suppliers. The code demands that employees needs to be also protected while in environments off the work site but related to their cause of duties since all workers are obliged to working in harassment and discrimination free environments (Tam, 2009). The code in addition demands that organizations should avoid harassment and discrimination during provision of services to the general public, suppliers, business partners or customers. This policy should be exercised at all levels of work i.e., during recruitment, promotions or even trainings to facilitate discipline and healthy working environment. Ø List and explanation of protected grounds. Codes of the human rights discourages discrimination in five society parts usually referred to as social areas. This includes; housing, employment, services, contracts and membership trades. There exist several grounds of protection which are only applicable in the social area of the employment. They include: prohibition of discrimination as a result of pregnancy under the sex ground, protection from discrimination and harassment due to intersection of multiple grounds of discrimination for example religious discrimination, protection from discrimination due to a political decision or stand. In addition, discrimination and harassments are prohibited based on the following extra grounds: sexual orientation, family status, citizenship, disability, ancestry and race. Ø Definition of key concepts. Key concepts of the policy should be elaborated and defined in consistency with the human rights policies and laws. Examples needs to be provided for the concept clarification. Definitions of related concepts such as racism and ageism are helpful when provided together with common manifestations of discriminations in relation to the exact ground codes. |
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Explain the risk management process. In your response, you must explain the practices and planning and steps required in developing risk management plans in the construction context. Your response should not exceed 200 words. |
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The following steps are followed to ensure effective risk management and assessment in order to plan, control and monitor the required measures to prevent risk exposure: a. Identification of the risk. A potential risk needs to be identified such as excavation of a deep drainage in a poor ground. b. Identification of possible parties, people or properties that might be destroyed or harmed. This involves the direct recipient of the risk occurrence. For example pipe layers in the trench in relation to the typical risk example stated above. c. Evaluation of the possible risks that might arise from the primary risk or hazard. This might be for example increased collapse risk according to our example. d. Determination of the control measures or required risk mitigation. This generally involve actions that might be pursued in order to prevent the predetermined risk from occurring or being experienced and eventually reducing its impacts in any case can no longer be prevented. This includes the use of steel trench drag box. e. Evaluation of the remaining risks and the upcoming risks resulting from the adopted control measures. This involves crushing risks or excavator bucket injuries and falling objects risks f. Recording of the risk assessment findings. This is achieved through filling of risk assessment sheet. g. Residual risk contingency plan making. h. Revision and proper review. Operations are monitored and risk assessment modification adopted. |
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State a total of 5 codes, acts, regulations and standards that are relevant to building and construction. |
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Ø Building act of 1975 of the Queensland’s legislation Ø Building regulations of 2006 related to the building act of 1975 Ø Queensland development code extending to scope of building codes of Australia Ø Queensland building and construction commission licenses Ø Queensland building certification system |
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Explain 3 licensing or registration requirements applicable to personnel in the building and construction industry. |
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General builder license-this is a requirement to all builders who intends to engage in building works and would wish to be approved by the commissioner of building control. This is applicable to both private and public projects of construction. It is specifically for builders engaging in general building works with two classes i.e., class 1 general builder license which is permitted to pursue project of any value and class 2 general builder license which is restricted to pursue projects worth at most $6million II. Specialist builder license. This are categorically meant for builders pursuing any of the below categories of building works. Builders are allowed to register in as more categories as qualified. Examples of these categories include: works relating to piling, ground support and stabilization, investigation of site, structural steel work, pre-cast concrete works and eventually in-situ post-tensioning work III. Contractor registration. Contractors engaging in building and construction activities are expected by this regulation to first register before engaging in any building and construction activity. This is aimed at ensuring that contractors have met all the required standards of training hence general protection of the public. |
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List 7 workplace safety requirements in the construction context. |
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· Regular putting on of protective clothes and gears such helmets to protect workers from falling materials · Availability of first aid kits for easy and fast administration of first aid services during an occurrence of an injury within the site. · Communication warnings through signboards about common dangers and risks in certain regions within the construction sites such as falling objects. · Proper education promotion to workers in relation to health and safety requirements at a construction site · Proper organization of construction work site activities · Constant training to workers on how to handle emerging construction materials to avoid injuries and accidents · Adoption of machine use in performing certain construction activities with an aim of limiting exposure of workers to risks. |
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What is the building code of Australia? Explain its purpose. |
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The building code of Australia generally entails provisions for the technical design and construction of structures and building projects and the expected standards to be achieved across Australia. The building code is generated and maintained by the building codes board of Australia. Its key objective is to ensure achievement of nationally uniform and minimum standards. |
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What are Australian Standards? Refer to the standards and explain what the following standards cover: AS1720. This standard is mainly concerned with the design and utilization of timber and structures constituting of timber as a construction material. AS3600. This is standard outlining the irreducible properties of concrete structures accompanied with steels or tendons as reinforcement AS4100. It is a standard outlining design, fabrication, erection and structures steelwork requirements in conformity to design state limit method |
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Standards are generally documented voluntary outlined specifications, guidelines and procedures that possess the objective of ensuring the set goals and target of services and products are consistently maintained and achieved. |
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Explain the difference between a domestic builder (limited) and domestic builder (unlimited). |
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A limited domestic builder is limited to carrying out, managing or making arrangements geared to carrying out strictly the domestic building work defined in their registration certificates whereas domestic builder (unlimited) are builders who earn registrations with capabilities of arranging, performing or managing all tasks relating to domestic building aimed at home renovations, improvements and maintenance. |
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List 5 important details that need to be included in an invoice for payment. |
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· The amount due · Payment due date · The invoice date · Services or goods purchased together with their descriptions · The information from the customer |
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What is GST? When must one register for GST? |
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Goods and service tax is commonly a tax of 10% on a good number of goods and services which are sold to consumers. A business or individual is entitled to GST registration under the attainment of the following conditions: · The business possess a GST turnover of not less than $75,000 · The non-profit organization possess a turnover of at least $150000 in a year · Provision capabilities of taxi travel for passengers in exchange to a fare as a component of the business not considering the GST turnover. This applies to both drivers to taxis and individuals who rent taxis. |
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What is PAY (G)? |
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PAYG is the collected withholding amounts, pay as you go by an employee which aimed at assisting workers and contractors to comfortably achieve their liabilities at the end of a period of one year. |
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What are industrial relations laws? List and explain 3 industrial relation laws applicable to the construction industry. |
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Industrial relation laws are generally a series of laws which are developed to govern and assist workers on the basics of their relations to each other at the work place or stations. They include the following: Ø Long service leave Act 1958. This act clearly outlines privileges to workers going for a long service leave in the Western Australia mostly eight and two thirds leave after a period of ten years after consistent service. This applies to all construction workers in the said region of Australia. Ø Fair work Act 2009. This act outlines a ten irreducible standards of national employment. Development of modern awards generated to establish a single set of irreducible conditions and wage privileges for employers and employees in the entire Australia. It also outlines the mechanisms of achieving workplace rights. Ø Industrial relations Act 1979. It includes the irreducible employment conditions outlined in the minimum conditions of employment Act 1993. It also entails the expected conditions to be met before engagement in an employment contract. |
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List and explain anti-discrimination and equal opportunity legislation. |
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· Age discrimination act 2004. This act protects both young and old citizens of Australia. It again protects people with certain specific behaviors believed to be of a person of specific age · Australian human rights commission act 1986. This protects citizens of Australia on the grounds of race, sex, color, religion, political alignment, national extraction, criminal records, marital records physical disability, country of origin and activities relating to trade unions · Disability discrimination act 1992. It protects citizens from discrimination originating from illness, emotions and judgement, physical, intellectual, psychiatric, sensory disorders, emotions or judgement and disturbed behaviors. It also captures discriminations relating to employment harassment, education or the goods and services provisions. · Racial discrimination act 1975. It relates to discrimination involving race, skin color, nationality, ethnic originality and at some point immigration status. Humiliations and hatred regarding races is prohibited in this act. · Sex discrimination act 1984. This relates to discrimination on the grounds of sex, marital status, and pregnancy, and breastfeeding, responsibilities originating from the family and gender inclinations. · Fair work act 2009. Relates to discrimination on the grounds of race, skin color, sex, sexual orientation, age mental and physical disabilities, pregnancies, religion, political inclinations and origin. |
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Directions: Match the legislation that is violated by each example of an organisation’s hiring policies and procedures. Write the correct letter on the “Answer” column. |
Answer |
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A. Australian Human Rights Commission Act 1986 |
Not hiring applicants because of their race, colour, descent or national or ethnic origin and in some circumstances, immigrant status. |
D |
B. Age Discrimination Act 2004 |
Not hiring applicants because of their sex, marital or relationship status, pregnancy or potential pregnancy, breastfeeding, family responsibilities, sexual orientation, gender identity, and intersex status. |
E |
C. Disability Discrimination Act 1992 |
Not hiring applicants because of their race, colour, sex, religion, political opinion, national extraction, social origin, age, medical record, criminal record, marital or relationship status, impairment, mental, intellectual or psychiatric disability, physical disability, nationality, sexual orientation, and trade union activity.
|
A |
D. Racial Discrimination Act 1975 |
Not hiring applicants because of their race, colour, sex, sexual orientation, age, physical or mental disability, marital status, family or carer responsibilities, pregnancy, religion, political opinion, national extraction, and social origin. |
F |
E. Sex Discrimination Act 1984 |
Not hiring applicants because of their physical, intellectual, psychiatric, sensory, neurological or learning disability, physical disfigurement, disorder, illness or disease that affects thought processes, perception of reality, emotions or judgement, or results in disturbed behaviour, and presence in body of organisms causing or capable of causing disease or illness (eg, HIV virus).
|
C |
F. Fair Work Act 2009 |
Not hiring applicants because of their age-specific characteristics or characteristics that are generally imputed to a person of a particular age. |
B |
Melbourne Housing Project
Required licenses and registrations
Business registration. This forms the initial step before undertaking the activity of Melbourne housing construction project. The project must be registered so as to facilitate all the necessary taxation procedures and other legal measures.
Builders licensing and registration. According to the building services act 2011, it requires strictly a registered builder to participate in building and construction activity. This act similarly demands for the registration of a building contractor. The registration process is performed by the building services board which is facilitated by the commission of building to achieve its objectives. This legal legislation possess two registration categories, i.e.
Trade licensing and registration.
Construction legislation
It includes most applicable codes, regulations, codes of practice and desired standards accepted by Australian standards. It entails:
Plumbing code of Australia. This touches on plumbing and drainage requirements for all classes of buildings in Australia.
OHS legislation and considerations
Legislation applicable to onsite construction
The following are legal requirements needed before and during a housing construction project
Applicable environmental legislation
There exist several laws and regulations formulated to protect the Australian environment from activities that would pollute the environment. They include the following
Industrial relations legislation including both state and federal obligations
The following legislations are applicable to the Melbourne construction project:
Lump sum and scheduled contract
The Melbourne housing project requires a lump sum and scheduled type of contract in order to efficiently achieve the projects objectives. According to this contract, the contractor carries out and completes the intended housing project plan and specifications at a certain agreed fixed amount of money. The project owner avails the intended information relating to the project requirements which charged by the contractor.
This contract is most favorite where items are few or when it is simple to come up with the specific and exact amount of work to be performed. The contract is also accompanied with clear outline of owner’s specifications of intended work, plans, drawings, charged penalties, deposits of securities and other terms of the contract. Despite the contract being lump sum and scheduled, a contractor is paid in bits after duration of two or three months for the progress of work done on the grounds of certificate issued by the in charge engineer. This rate are communicate within the contract agreement.
Literature review
This type of contract possess the following advantages over other types of contract for a housing project:
Section 2.1 Payments and stages clause
The following is a summary of stages and the incurred or expected payments:
Lump sum and scheduled contract |
% of Contract Price |
Amount $ |
Payments and Stages |
Contract to build all stages |
5% |
15,000 |
Deposit |
10% |
30,000 |
Base stage |
|
15% |
45,000 |
Frame stage |
|
35% |
105,000 |
Lock-up stage |
|
25% |
75,000 |
Fixing stage |
|
10% |
30,000 |
Final payment |
|
100% |
300,000 |
Total |
Section 2.2 Insurance clause
This type of contract requires that the following insurance covers must be obtained by both the house project owner and the project contractor:
Insurance covers obtained by the project owner;
Insurance covers acquired by the project contractor or the company:
Section 3.0 risk management process
The following plans, process and steps are to be adopted and implemented with an aim of managing risks:
In order to manage risks efficiently, necessary plans must be adopted efficiently. They include:
Conducting brainstorming sessions with workers, shareholders and team of the project geared to identifying potential risks before they are experienced. Past projects with the locality and risks accompanied to them must be reviewed.
Assessment of probability of an identified risk occurring and its impacts on the project. The risks must be categorized against their impacts and probability ranks. Risks with high impacts and probability must be given priority and handled first. All potential risks must include the needful resources such as money, time and labor to manage.
After ranking all the potential risks, the risks are reviewed and methods are criteria of avoiding, eliminating, reducing, transferring or accepting the risks are adopted. It is important agreeing with all the shareholders on which risk each is responsible to. Insurance providers must be clear on the nature and type of risk covered within a policy.
Mitigation of risk. Risk elimination, reduction and acceptance deserves careful planning. Adding more resources such as workers and equipment reduces over commitment to risks hence effective risk management
Acceptance of risk. Good risk management allows for low probability and limited impact risk to be accepted by a contractor. Efficient management of construction risks calls for proper communication and joint responsibility among concerned parties of the project
Legislation compliance plan.
OHS legislation and provisions on site
The house building project team shall vividly consult with the project designers about all the necessary health and safety measures to be considered during construction process.
The professional project team shall ensure the project site is fenced off from unauthorized access to limit injuries that could arise
All project workers shall be subjected to a two weeks training and education to learn simple emergency and first aid skills during emergency cases
As a project manager, all duties for each individual shall be clearly described together with the time with an aim of reducing accidents and confusions.
The site professional team shall ensure that all necessary sign boards and warnings to the public are rightly utilized to limit the exposure of the public to accidents. For example,
Signboards containing pictures and words shall be used to inform and warn the public of expected dangers around the construction site such as falling objects and unavoidable noise from the site.
Construction codes, acts, regulations and standards
The construction professional team shall notify the relevant bodies of excavation works at the site in a duration of three days before commencement of the work as stipulated in the excavation work regulatory requirements.
All legally risk requirements covers such as commercial general liability covers, umbrella policy and contractors pollution coverage shall be acquired before engagement in any construction activity. This will relieve the company of financial burden and expenses during occurrence of this risks. In addition, the company shall obtain pay as you go payments from site workers to relieve them of end year tax liabilities.
The construction project shall conform to the noise pollution act through engaging in activities that emit controlled noise. The management plans to acquire modern working materials and machines that produces limited noise. Besides this, all workers shall be regulated to work within the normal working hours to minimize unnecessary noise to the society.
In addition, the construction project shall strictly adhere to biodiversity protection act. All construction activities shall be aimed at protecting animals and plants habitat. This shall be achieved through allocation of environmental expert leader to each working team to aid in provision of environmental advice.
Construction contractors and subcontractors shall protect and obey the legal construction contract clauses such as payment and procedures for solving disputes. This too applies to commitments aimed at satisfying the owner requirements and specifications as stipulated within the contract.
Insurance and regulatory requirements for housing construction
The professional team of the housing project shall legally obtain all insurance policy covers under the responsibility of the contractor with an aim of reducing financial work load during occurrence of such risks which includes damages of properties, injuries, material price inflations and damages resulting from defective work
Contractors are open to engage within the construction contract in regards to the principles of the common law where it promotes suing of any party in violation of the construction contract laws. This concept is commonly known as contract Privity which states that contract rights cannot be enjoyed by parties that did not form part of the contract and no third party who is not part of the contract is viable to contract terms liabilities.
Contract obligations
The construction project shall be conducted and completed with a sole aim of satisfying the project owner’s availed specifications and meeting the contract objectives and clauses as agreed. This satisfaction shall be achieved at the same fixed cost settled on in the contract. The contract conditions of periodical payments after completion of the intended construction work shall be respected and adhered as stipulated by the contract laws and requirements. All financial obligations and approvals to both the project owner and workers shall be appropriately done in relation to the contract requirements.
Kindly acknowledge the housing project manager commitment and compliance plan effort aimed at achieving the projects outlined requirements, both legal and owners requirements. Be informed that the project management department is committed to adopting and obeying all the contract laws for the success of the project. You are requested to similarly embrace your commitment to the plan where applicable.
A copy of the compliance plan is attached.
Every business in Australia is usually assigned an 11 digit Australian business number applicable to any new business in Australia or goods and service taxes registration. It is freely done through Australian business register.it requires work invoices, a distinct business bank account, tax file number and biographic details of employees. The application is clearly elaborated through this link https://www.wikihow.com/Apply-for-an-ABN-Number
Goods and services task is a task charged on goods and services in Australia. It is usually 10% of the good and services worth. It is applicable in situations where a business possess a GST turnover of at least $ 75000, yearly turnover of $75000 to a non-profit organization and provision of passengers taxi travel in exchange of fare as part of business.
ABN forms a requirement document for GST registration and is normally used as the registration number for the GST. The GST registration is done either online through a registered tax agent as shown on the link below
https://www.service.nsw.gov.au/transaction/register-your-business-goods
PAYG registration
As an employer, it is very necessary to collect the pay as you go funds from employed workers in order to assist them comfortably meet there end year tax liabilities. This is done through collection of PAYG withholding amounts the processed payments made to workers. Whenever one stops being an employer, he is advised to terminate the registration for PAYG. The below link shows the process for PAYG registration.
https://www.ato.gov.au/Forms/Application-to-register-a-PAYG-withholding
Business name registration
Business name is the title or name that a business performs business on. In order to succeed in registering a business name, the business must have an Australian business number or under the process of application. The below link illustrates the necessary steps and methods of registering a business name
https://www.service.nsw.gov.au/transaction/register-your-business-goods
General safety policy. This construction company policy or rule outlines what mode of conduct and behavior are expected from construction workers as they deliver their duties with an aim of maintaining safety and good health. It was agreed that all workers at the site would at all time be in protective clothing and gears such as helmets, gowns and gloves so as to protect their bodies from risks such as falling objects and cuts from sharp objects.
Workers operating machines emitting loud noise settled on implementing measures aimed at protecting the ears drums. Breaks in between work sessions was to be adopted to enable healthy rests thus limiting fatigue.
Housing project |
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Roof |
Type of subcontractor |
Number of subcontractors |
Painters |
6 |
|
Sheet metal workers |
12 |
|
Roof carpenters |
4 |
|
Interior |
Painters |
8 |
Electricians |
4 |
|
Carpentry workers |
3 |
|
Plumbers |
3 |
|
Foundation and floor |
Tiling |
5 |
Excavation workers |
4 |
|
Concrete workers |
14 |
The construction company policy states the working duration for all workers. Over time working is prone to additional payment to the workers foe the extra duration worked. The organization highly appreciate the work and health safety regulations which categorically discourages unhealthy noise pollution. In addition to this, protective gear should be adopted to protect workers from other related risks.
The construction site condition and neighborhood of Victoria demands limited exposure to construction noise so as not to interfere with the normal existence of the society more so at odd hours. The construction workers shall be advised to work within the normal working periods with machines and drills modified to produce limited sound. Workers engaging in activities without protective gears shall be subjected to penalties or dismissal. Strict future follow up of the same shall be too emphasized.
In order to encourage and sustain the health and safety policy, the company will soon acquire modern machines that are more environmental friendly and would limit workers activities to shorter durations. Besides, the company will conduct regular training and education programs aimed at encouraging good working practices.
Kindly receive this memorandum as a reminder to you about your obligation and commitment to embracing and implementing the outlined company’s workplace policies availed to you prior. You are too reminded to strictly conform and follow the building permit limits and conditions during service delivery as failure to do so shall lead to heavy penalties or dismissal. Your conformity to the above is highly expected.
letter confirms our present and future commitment to the building and construction regulations provided by the regulatory authority. Kindly be informed that our company has implemented appropriate measures to ensure previous violations are punished and corrected. For continued future compliance, our company will make the following adjustments and improvement:
Regular conducting of workers education training programs on construction regulation requirements
Enacting of internal punishment mechanisms to regulation violators
Better outlining of duties together with time and duration
Engagement of the neighboring society in projects
Acquisition of improved machinery with limited impacts to the environment
Adoption of good employer-employee relation
We look forward to comfortably making this regulations a success as we deliver our professional mandates.
References
Porwal, A., & Hewage, K. N. (2013). Building Information Modeling (BIM) partnering framework for public construction projects. Automation in Construction, 31, 204-214.
Tam, V. W. (2009). Comparing the implementation of concrete recycling in the Australian and Japanese construction industries. Journal of Cleaner Production, 17(7), 688-702.
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