A legal requirement is something that is required or a necessary condition established by law or legislation. It includes all statutes, ordinances, regulations, licenses, permits, agreements, restrictions, or other prerequisites of any regulatory and legal authority, whether federal, state, or local.
Legislation is composed of the following:
- Acts
- A sequence of provisions containing statements and rules designed to give effect to a particular policy
- An Act deals with all matters of importance for the implementation of a particular policy
- Regulations
- Subordinate legislation, also known as delegated legislation, is law made by the executive branch of government with the authorisation of Parliament. Subordinate legislation includes regulations, rules, by-laws, specific policies, proclamations and notices. These laws are made under an Act of Parliament.
Australian Contract Law
Instead of being based on statute law (legislation created by the Parliament), the Australian Contract Law is based on English common law. Common law is a body of law based on court decisions and accepted customs developed primarily by Australian courts and other courts adopting the common law, such as the United Kingdom.
The Australian Contract Law indicates that there are five (5) elements needed for a contract to become legally binding:
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Agreement: An agreement done through the concept of offer and acceptance is composed of a clear indication (offer) of a party (offeror) to be bound to contract terms. The other party (offeree) then accepts the offer (acceptance). A contract cannot be one-sided or unilateral, meaning both parties should agree upon the terms of the contract.
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Consideration: Consideration is exchanging something of appropriate value as compensation for undertaking and complying with the terms of the contract. Primary consideration is in the form of monetary payment but can be in any form, such as an appropriate service or property.
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Capacity: Capacity in contracts means that a party is able to enter into a legally binding contract, as there are instances that a person does not have the contractual capacity. Examples of groups that do not have contractual capacity include minors, mentally impaired and persons under the influence of alcohol.
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Intention: There should be explicit evidence that both parties intend their agreement to be legally bound to the contract law. When it is apparent, both parties are now under a legally binding contract and subject to legal obligations (and in case of contract breach, legal consequences) in their jurisdiction.
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Certainty: The contract and its terms can be clearly defined and enforced, not ambiguous in meaning, as this will pose confusion, especially during legal affairs. Both parties should agree upon all the terms of the agreement to be certain the agreement is understood well.
Once any of these elements are not present or are lacking, the agreement cannot be considered a legally binding contract. Therefore, these elements of contract formation can be considered a legal requirement through the Australian common law on contracts.
Australian Consumer Law
Australian Consumer Law (ACL) was enacted under the Competition and Consumer Act 2010. The ACL has a section that prohibits unfair terms in contracts with legal consequences. This protects all parties from being exploited or taken advantage of, as well as avoiding legal consequences. Therefore, it is a legal requirement to prepare terms in the contract in a manner that is fair for all parties of the agreement under the ACL.
Industrial relations
Industrial Relations is the system of employment laws and rules meant to control and manage all the rights, obligations, and relationships employers and employees have in the workplace. Industrial relations is necessary in today’s workplace as a harmonious relationship between the employers, and the employees are essential to maintain productivity. The Fair Work Act 2009 and the Fair Work Regulations 2009 is the main legislation that covers industrial relations in Australia.
Australian Human Rights Commission Act 1986
The Australian Human Rights Commission Act 1986 is the prime legislation for protection against discrimination and harassment inside the workplace. This Act lists requirements of employers on how to protect their employees from being discriminated or harassed. Aside from that, the following pieces of legislation provide legal requirements on particular types of discrimination and harassment:
- Age Discrimination Act 2004
- Disability Discrimination Act 1992
- Racial Discrimination Act 1975
- Sex Discrimination Act 1984
Payroll in Australia
Australian businesses with combined wages above a threshold set by each state and territory are required to pay payroll tax and need to be aware of the Pay As You Go (PAYG) system. PAYG is an acronym used for the two different processes systemised by the Australian Tax Office (ATO) for businesses in Australia: PAYG instalments and PAYG withholding.
Building classifications
There are ten labels for building classifications, from Classes 1-10, covering the Building Code of Australia. Some of these classifications, like Class 1, have sub-classifications, referred to by a letter after the number (e.g. Class 1a). Building Classes 2 to 9 are covered mainly by Volume One of the NCC, while Class 1 and 10 are covered by Volume Two. Volume Three, the Plumbing Code of Australia, refers to all building classifications.
Some buildings classes require the appropriate registration or licence to perform construction work on those building classes. This ensures that the builder has adequate knowledge, skills, and experience when conducting building works.
Building approvals and permits
Building approvals and permits are used interchangeably in the construction industry. They are required before construction work begins, primarily domestic building works. Both serve the purpose of ensuring that the construction work:
- Complies with building laws and legislation, including the BCA,
- Will be safe and structurally sound, and
- Will provide the required levels of fire resistance, amenity, energy efficiency, and if required, access for people with disabilities.
Environmental requirements
An environmental impact assessment (EIA) helps identify and recognise the impact of a development, such as a building and construction project, on the environment. In turn, the EIA will be a key indicator if a project should proceed or not.
Waste management requirements
The main legislation for waste management across Australia is the 2018 National Waste Policy: Less waste, more resources. The National Waste Policy provides a framework for collective action on proper waste management and resource recovery by businesses, governments, communities, and individuals until 2030.
WHS legislation
WHS legislation covers all the WHS acts and regulations enacted by the States and Territories of Australia. The WHS Legislation comprises of the Work Health and Safety Act 2011 and the Work Health and Safety Regulations 2011, as well as the Codes of Practice created under the Act and Regulation.
Codes of Practice
Codes of practice are not legislation, but rather a practical guidance material discussing how to comply with legal duties under the WHS legislation. They address particular issues and might not cover all the hazards or risks that may arise, compared to regulations that tend to be more formal as they are legal documents.
Security of Payment Legislation
Security of payment pertains to the certainty that a building contractor will receive proper payment as outlined in the construction contract. The legislation of the different states and territories on the security of payment aid in resolving payment disputes of contractors through adjudication. Adjudication provides protection for contractors with regards to their payments but has strict requirements on applications and timeframes. As legal requirements, you need to adhere to the conditions of the security of payment so that your contracts can be eligible for the security of payment.
Fair trading legislation
Fair trading legislation covers fair business negotiation and agreements, including contracts. As one who engages in business agreements through construction contract, you must comply with the legal requirements outlined in the legislation.
Apply contract agreements
Once the contract agreements have been reviewed, agreed upon and signed, you then apply the contract agreement and must meet all of its conditions over the course of the construction. This is important as non-compliance is a contract breach and may lead to contract termination, or worse, legal action and consequence. Thus, properly complying with the contract is a must.
Insurances
Construction insurances are important for the safety of your workers, protection for your project as well as compliance with legal requirements. Carrying out construction without one, or with an outdated or expired one, is subject to legal action. Therefore, you must take the time to confirm all necessary insurance are current or updated. You should also find out if they are currently applied and covered by the insurance; otherwise, the insurance will not cover your workers even if they have one.
Awards
Modern awards, or simply awards, are legal documents that outline that minimum pay rates and conditions of employment, such as leave entitlements, overtime, and shift work. The awards are regulated by the Fair Work Commission and Fair Work Ombudsman.
Registered Agreement
A registered agreement is a document between the employer and their employees regarding employment and workplace conditions. The agreement must be approved by and registered with the Fair Work Commission.
Making training information available
As an employer, you should make information regarding training known to all your workers involved in training inside the organisation. This will help you and your organisation to be clear and transparent with the procedures and requirements with regards to traineeship and apprenticeship in your organisation. This includes the necessary documents, such as the training contract and the training plan.
Addressing complaints
Complaints in the workplace should be a serious matter as this will affect the construction project and your organisation as well. To not further complicate issues and conflicts in the workplace, you need to address complaints immediately, consult with the complainant, and resolve the issue with the best solution for all. In doing so, you will maintain good business or work relationship with others in the project and organisation, as well as not jeopardise the project.
- Copies of the National Construction Code, including the Building Code of Australia, may be downloaded for free from the Australian Building Codes Board (ABCB) website, upon free registration.
- Australian Standards are produced and managed by Standards Australia, a non-profit, non-government organisation. Australian Standards are available for purchase from their website.
- For further information about the Australian Building Industry Contract (ABIC), you may head to the Australian Institute of Architects' website.
- You can view the Unfair Contract Terms under the Australian Consumer Law for specific provisions unfair terms of a contract.
- For additional information on the Fair Work System and its legal requirements, you can visit the website of the Fair Work Commission and Fair Work Ombudsman.
- Check the Australian Taxation Office’s (ATO) website for further information on PAYG:
- Australian Taxation Office – PAYG Instalments
- Australian Taxation Office – PAYG Withholding
- You may check the related article on workplace health and safety management system from the Comcare website for further information.
- You may check a sample building contract, provided by the Queensland Building and Construction Commission.
- You can access a sample building permit application, published by the Government of Western Australia.
- You may search for existing agreements from the Fair Work Commission website to get an idea of how agreements should be. The search page shows different types of agreements, either pending approval or are already approved.
- You can access the full sample of a training contract (agreement) here, authorised by the ACT Parliamentary Counsel. The training contract is also accessible at www.legislation.act.gov.au.
- You can view a National Training Plan template, published by the Government of Western Australia, for an overview of what you can find in a training plan. As this is a template, you may use it as is or create your own training plan based on the template.
Below you can access a collection of Model Codes of Practice, published on SafeWork Australia's website:
- Preventing falls in housing construction
- Managing electrical risks at the workplace
- Managing noise and preventing hearing loss at work
- Confined spaces
- Hazardous manual tasks
- How to manage and control asbestos in the workplace
- How to safely remove asbestos.
The following table shows the Australian Standards commonly used for building and construction. It is often worth viewing a summary of the content online to check if it covers what you are expecting and that you have the most recent version. Australian Standards are available for purchase through the Standards Store or distribution partners' websites.
| No. | Date | Title |
|---|---|---|
| AS/NZS ISO 717 | 2004 | Acoustics — Rating of sound insulation in buildings and of building elements — Airborne sound insulation |
| AS ISO 717 Part 2 | 2004 | Acoustics — Rating of sound insulation in buildings and of building elements — Impact sound insulation |
| AS 1056 Part 1 | 1991 | Storage water heaters — General requirements (incorporating amendments 1, 2, 3, 4 and 5) |
| AS/NZS 1170 | 2002 | Structural design actions — General principles (incorporating amendments 1, 3 and 4) |
| AS/NZS 1170 | 2011 | Structural design actions — Wind actions (incorporating amendments 1, 2, 3, 4 and 5) |
| AS 1191 | 2002 | Acoustics — Method for laboratory measurement of airborne sound transmission insulation of building elements |
| AS 1273 | 1991 | Unplasticized PVC (UPVC) downpipe and fittings for rainwater |
| AS 1288 | 2006 | Glass in buildings — Selection and installation |
| AS 1289.6.3.3 | 1997 | Methods of testing soils for engineering purposes — Method 6.3.3: Soil strength and consolidation tests — Determination of the penetration resistance of a soil — Perth sand penetrometer test (incorporating amendment 1) |
| AS 1397 | 2011 | Continuous hot-dip metallic coated steel sheet and strip — Coatings of zinc and zinc alloyed with aluminium and magnesium (incorporating amendment 1) |
| AS 1428 | 2009 | Design for access and mobility — General requirements for access |
| AS 1530 | 1994 | Methods for fire tests on building materials, components and structures — Combustibility test for materials |
| AS 1562 Part 1 | 2018 | Design and installation of sheet roof and wall cladding — Metal |
| AS 1657 | 2018 | Fixed platforms, walkways, stairways and ladders — Design, construction and installation |
| AS/NZS 1664 | 1997 | Aluminium structures — Limit state design (incorporating amendment 1) |
| AS 1668 | 2015 | The use of ventilation and air conditioning in buildings — Fire and smoke control in buildings (incorporating amendment 1) |
| AS 1670 | 2018 | Fire detection, warning, control and intercom systems |
| AS/NZS 1680 Part 0 | 2009 | Interior lighting — Safe movement |
| AS 1684 | 2010 | Residential timber- framed construction |
| AS 1720 | 2010 | Timber structures |
| AS 1735 | 1986 | Lifts, escalators and moving walks |
| AS/NZS 1859 Part 4 | 2018 | Reconstituted wood- based panels |
| AS 1860 Part 2 | 2006 | Particleboard flooring — Installation (incorporating amendment 1) |
| AS 1905 Part 1 | 2015 | Components for the protection of openings in fire-resistant walls |
| AS 1926 Part 1 | 2012 | Swimming pool safety |
| AS 2047 | 2014 | Windows and external glazed doors in buildings |
| AS 2049 | 2002 | Roof tiles (incorporating amendment 1) |
| AS 2050 | 2018 | Installation of roof tiles |
| AS 2118 | 2017 | Automatic fire sprinkler systems |
| AS 2159 | 2009 | Piling — Design and installation (incorporating amendment 1) |
| AS/NZS 2179 Part 1 | 2014 | Specifications for rainwater goods, accessories and fasteners |
| AS/NZS 2269 Part | 2012 | Plywood |
| AS/NZS 2293 Part 1 | 2018 | Emergency lighting and exit signs for buildings |
| AS/NZS 2327 | 2017 | Composite structures |
| AS 2419 Part 1 | 2005 | Fire hydrant installations |
| AS 2441 | 2005 | Installation of fire hose reels (incorporating amendment 1) |
| AS 2444 | 2001 | Portable fire extinguishers and fire blankets — Selection and location |
| AS 2665 | 2001 | Smoke/heat venting systems — Design, installation and commissioning |
| AS/NZS 2699 Part 1 | 2000 | Built-in components for masonry construction |
| AS 2870 | 2011 | Residential slabs and footings |
| AS/NZS 2890 Part 6 | 2009 | Parking facilities |
| AS/NZS 2904 | 1995 | Damp-proof courses and flashings |
| AS/NZS 2908 Part 1 | 2000 | Cellulose-cement products |
| AS/NZS 2918 | 2018 | Domestic solid fuel burning appliances |
| AS/NZS 3013 | 2005 | Electrical installations — Classification of the fire and mechanical performance of wiring system elements |
| AS/NZS 3500 Part 0 | 2003 | Plumbing and drainage |
| AS/NZS 3500 | 2018 | Plumbing and drainage |
| AS 3600 | 2018 | Concrete structures |
| AS/NZS 3666 | 2011 | Air-handling and water systems of buildings |
| AS 3700 | 2018 | Masonry structures |
| AS 3740 | 2010 | Waterproofing of domestic wet areas |
| AS 3786 | 2014 | Smoke alarms using scattered light, transmitted light or ionization (incorporating amendment 1 and 2) |
| AS 3959 | 2018 | Construction of buildings in bushfire-prone areas |
| AS/NZS 4020 | 2018 | Testing of products for use in contact with drinking water |
| AS 4055 | 2012 | Wind loads for housing (incorporating amendment 1) |
| AS 4072 | 2005 | Components for the protection of openings in fire-resistant separating elements |
| AS 4100 | 1998 | Steel structures |
| AS/NZS 4200 | 2017 | Pliable building membranes and underlays — Materials |
| AS 4200 Part 2 | 2017 | Pliable building membranes and underlays — Installation requirements (incorporating amendment 1) |
| AS/NZS 4234 | 2008 | Heated water systems |
| AS 4254 Part 1 | 2012 | Ductwork for air- handling systems in buildings — Flexible duct |
| AS 4254 Part 2 | 2012 | Ductwork for air- handling systems in buildings — Rigid duct |
| AS/NZS 4256 | 1994 | Plastic roof and wall cladding materials — General requirements |
| AS/NZS 4284 | 2008 | Testing of building facades |
| AS/NZS 4505 | 2012 | Garage doors and other large access doors (incorporating amendment 1) |
| AS 4552 | 2005 | Gas fired water heaters for hot water supply and/or central heating |
| AS 4586 | 2013 | Slip resistance classification of new pedestrian surface materials (incorporating amendment 1) |
| AS 4597 | 1999 | Installation of roof slates and shingles (Non- interlocking type) |
| AS/NZS 4600 | 2018 | Cold-formed steel structures |
| AS 4654 Part 1 | 2012 | Waterproofing membranes for external above-ground use — Materials |
| AS 4654 Part 2 | 2012 | Waterproofing membranes for external above-ground use — Design and installation |
| AS 4678 | 2002 | Earth-retaining structures |
| AS 4773 Part 1 | 2015 | Masonry in small buildings — Design (incorporating amendment 1) |
| AS/NZS 4859 | 2018 | Thermal insulation materials for buildings |
| AS 5113 | 2016 | Classification of external walls of buildings based on reaction-to-fire performance (incorporating amendment 1) |
| AS 5146 Part 1 | 2015 | Reinforced autoclaved aerated concrete — Structures (incorporating amendment 1) |
| AS 5216 | 2018 | Design of post-installed and cast-in fastenings in concrete |
| AS 5637 Part 1 | 2015 | Determination of fire hazard properties — Wall and ceiling linings |
| AS ISO 9239 Part 1 | 2003 | Reaction to fire tests for floorings — Determination of the burning behaviour using a radiant heat source |
