Specific areas of research;
1. Laws
relating to
builder
licensing or
registration.
Your research findings;
1.1. List and
summarise licensing

or registration
legislation relevant

to NSW.


You must have a contractor licence before you contract, subcontract or advertise to do:
residential building work where the reasonable market
cost of the labour and materials is more than $1,000 (including
GST)
all electrical wiring work
all plumbing, draining and gasfitting work
all air conditioning and refrigeration work (except plug-in
appliances).
http://www.fairtrading.nsw.gov.au/ftw/Tradespeople/Home_b
uilding_licensing/Applying_for_a_licence_or_certificate.page
1.2. List and
summarise the
classifications for
builders,
supervisors and
managers.
If only one qualified supervisor is nominated, they must
also hold a current endorsed individual contractor licence
or qualified supervisor certificate that includes all classes
of work that the company or partnership wishes to contract
for. It may be necessary for the company or partnership to
nominate more than one supervisor to cover all classes of
work that the company or partnership proposes to carry
out.
Contractor Licence authorises that holder to contract and
advertise to carry out the work described on their licence
card. Individuals may have their contractor licence
endorsed with a Q and this indicates that the licence is also
equivalent to a Qualified Supervisor Certificate. As an
endorsed contractor licence holder is qualified they do not
require a nominated supervisor.
Qualified Supervisor Certificate allows the holder to
supervise and carry out the work as described on their
certificate.
Nominated Supervisor is an individual who holds an
endorsed contractor licence or a qualified supervisor
certificate, and who is registered against a contractor
licence as the person supervising the residential building
work or specialist work. All companies and partnerships
and unqualified individuals holding a contractor licence
must nominate a supervisor.
http://www.fairtrading.nsw.gov.au/ftw/Tradespeople/Home
_building_licensing/Licence_classes_and_qualifications.pa
ge
http://www.fairtrading.nsw.gov.au/ftw/About_us/Our_servi
ces/Forms/Builder_and_tradespeople_forms.page
Tradesperson Certificate is only issued in the classes of
plumbing, draining and gasfitting and allows a person to
undertake work with minimum supervision. Any work
undertaken by the holder of a tradesperson certificate
cannot sign off on work and work must be signed off by
the holder of a contractor licence or qualified supervisor
certificate. Tradesperson certificates used to be known as a
‘journeyman’.
2. WHS
2.1. List ten provisions
legislation
and
provisions
on site.
of WHS legislation
and regulations and
any local legislative
requirements
relevant to onsite.
Workcover NSW codes of practice:
Workcover Guide to truss erection
Managing falls
Construction work
2.2. List five
regulations and
codes of practice
applicable to onsite construction.
What is the BCA? The Building Code of
Australia (BCA) is Volumes One and Two of
the National Construction Code (NCC). The
BCA is produced and maintained by the
Australian Building Codes Board (ABCB) on
behalf of the Australian Government and
2.3. Discuss the
requirements of site
safety signs.
State and Territory Governments. The BCA
has been given the status of building
regulation by all States and Territories.
The BCA Goal The goal of the BCA is to enable
the achievement of nationally consistent,
minimum necessary standards of relevant
safety (including structural safety and safety
from fire), health, amenity and
sustainability objectives efficiently.
This goal is applied so—
•there is a rigorously tested rationale for the
regulation;
•the regulation generates benefits to society
greater than the costs (that is, net benefits);
•the competitive effects of the regulation have
been considered and the regulation is no
more restrictive than necessary in the public
interest; and
•there is no regulatory or non-regulatory
alternative that would generate higher net
benefits.
Proposals to change the BCA are subjected, as
applicable, to a Regulatory Impact Assessment
process.
Australian Standards;
Timber framing code AS1684
Residential slabs and footings AS2870
3. Codes, Acts,
regulations
and
standards
relevant to
3.1. List and
Codes:
summarise the
NCC or BCA is the main regulatory document for Building:
current codes, Acts, The Building Code of Australia (BCA) is Volumes One and Two of
the National Construction Code (NCC). The BCA is produced and
regulations and
maintained by the Australian Building Codes Board (ABCB) on
standards,
behalf of the Australian Government and State and Territory
construction
.
insurance,
sustainability,
environmental
matters and
appropriate by-laws
applicable to the
building type being
studied.
Governments. The BCA has been given the status of building
regulation by all States and Territories.
The goal of the BCA is:
to enable the achievement of nationally consistent, minimum
necessary standards of relevant safety (including structural
safety and safety from fire), health, amenity and
sustainability objectives efficiently.
This goal is applied so—
•there is a rigorously tested rationale for the regulation;
•the regulation generates benefits to society greater than
the costs (that is, net benefits);
•the competitive effects of the regulation have been
considered and the regulation is no more restrictive
than necessary in the public interest; and
•there is no regulatory or non-regulatory alternative that
would generate higher net benefits.
Proposals to change the BCA are subjected, as applicable, to a
Regulatory Impact Assessment process.
Codes:
Codes of practice for safety will be dealt with in WHS section
Acts:
NSW Home Building Act 1989 is the current Regulation but
there is a discussion paper being prepared by Government with
possible effects due mid 2014. More information on fairtrading
website. You can even subscribe to the newsletter.
Regulations:
NSW is undergoing a lot of changes in the planning process and
more information can be found on the Government sites
related to the Housing code and planning. About the NSW
housing code:
As part of its ongoing planning reforms, the NSW
Government released the first stage of the NSW
Housing Code which commenced 27 February 2009. An
amendment which will commence on the 7 September
2009 introduces new exempt development types,
expands complying development, clarifies existing
development standards under the General Housing
Code and introduces a new code covering complying
development for housing internal alterations.
The NSW Housing Code outlines how owners of lots of
450m2 and greater can undertake residential
developments such as:
· detached single and double storey dwelling houses;
· home extensions and renovations; and
· other ancillary development, such as swimming pools
as complying development with council or accredited
certifier sign-off.
It also outlines how 49 types of low-impact development
types (known as “exempt development”) can be
undertaken without the need for planning or
construction approval. The exempt development code
does not stipulate any limits on lot size; however, other
legislative requirements for approvals, licences, permits
and authorities still apply.
Summary of Regulations. Regulations include specifications,
acceptable and prohibited practices, approval mechanisms and
general detail relating to the execution of an Act. They provide
protection to individuals.
Standards:
Australian Standards set out the safety requirements and
provide guidance for persons working in specific areas or
dealing with particular equipment. These standards do not
become legally binding until they are incorporated into
legislation. Examples of standards relevant to housing
construction could be:
 AS 1684 Timber Framing Code deals with timber in
housing work, bracing and tying down the building.
 AS 1562 Design and installation of sheet roof and wall
cladding deals with sheet cladding and roofing.
 AS 3786 Smoke alarms …
 AS 2870 Residential Slabs and Footings deals with the
reinforcing and sizing of slabs and footings in residential
buildings.
 AS 2904 Damp proof courses and flashings …
 AS 3660 Termite management – New building work …
Insurance:
See next point for Home Owners Warranty insurance
Sustainability:
As part of its ongoing planning reforms, the NSW Government
has released the first stage of the NSW
The NSW Housing Code will enable the NSW Government to
implement some important sustainability initiatives. These
include:
· limiting the maximum floor area and site coverage of homes,
thereby limiting energy consumption;
· requiring minimum landscaped areas, which contribute to
biodiversity, housing amenity andsoil permeability, which
reduces stormwater runoff within the urban environment;
and
· ensuring new homes comply with the NSW Government’s
world-first BASIX initiative, as a means of minimising energy
and water usage. BASIX continues to apply to complying
development.
Source: Planning.nsw.gov
Environment:
4. Insurance
and
regulatory
requirement
s for
housing
construction
.
4.1. List and describe Home warranty insurance.
Home warranty insurance needs to be provided by:
the insurance
A builder or tradesperson before taking any money (including a
required to be able
deposit) from a home owner (including an owner-builder)
to operate your
under a residential building contract and before starting any
work under that contract.
business in
A
‘spec’
builder before starting any residential building work on a
accordance with
property owned by the builder.
legal requirements.
A developer before entering into a contract for the sale of a
property on which a builder is doing or has done residential
building work for the developer.
An owner-builder (ie. a home owner who did owner-builder work
under an owner-builder permit) before entering into a contract for
sale of the property on which residential building was done within the
previous 6 years.
From 1 February 2012, home warranty insurance policies must
provide cover of at least $340,000. Between 28 February 2007 and 31
January 2012, the minimum cover that had to be provided was
$300,000.
Home warranty insurance provides a set period of cover for loss
caused by defective or incomplete work in the event of the death,
disappearance or insolvency of the contractor.
Home warranty insurance policies issued from 19 May 2009 also
enable home owners to claim on the policy where the licence
of the builder or tradesperson responsible for the work is
suspended or cancelled for failing to comply with a money
(compensation) order made by the Consumer, Trader and
Tenancy Tribunal or a Court.
Cover for loss arising from defective work is provided for a period
of:
•6 years from the date of completion of the work or the end of
the contract for the work (whichever is the later) for loss
arising from a structural defect, and
•2 years for loss arising otherwise than from a structural defect.
An additional 6 months cover applies in cases where the loss
becomes apparent in the final 6 months of the period of
insurance. The 6-month period starts from the date of the
loss becoming apparent.
Cover is also provided for loss arising from non-completion of
work for a period of 12 months after the failure to commence, or
cessation of, the work.
For policies issued prior to 1 February 2012, builders and consumers
are encouraged to check their insurance documents for information
about coverage and time periods.
Public liability.
Public liability insurance protects you and your business against the
financial risk of being found liable to a third party for death or injury,
loss or damage of property or economic loss resulting from your
negligence.
Work cover.
The NSW Workers Compensation Scheme provides protection to
workers and their employers in the event of a work-related injury or
disease. The aim of the scheme is to maintain a financially viable
workers compensation system that is fair and affordable for
employers and improves outcomes for injured workers.
4.2. Describe how
relevant contract
laws are applied in Fairtrading handles obligations for builders in NSW
accordance with
Contract essentials
common law
By law, your chosen builder or tradesperson must give you a
principles, relevant written contract if
state or territory 
the contract price is over $1,000 (including GST), or

the contract price is not known, is for the provision of
laws and
labour and materials by the contractor the reasonable market cost
regulations, and fair of which is more than $1,000 (including GST).
trading legislation.
Jobs worth between $1,001 and $5,000 require a written 'small
job' contract with minimum basic information, while building jobs
worth more than $5,000 must be covered by more extensive
written contracts.
Apprenticeship contracts
Page 117 and on
5. Legislation
for financial
transactions
.
5.1. Describe how to
setup and
administer payroll
systems to comply
with current
legislative
requirements.
5.1 Employers
You may have tax and superannuation obligations if you
employ or contract workers into your business, either full-time
or part-time. This includes your family members and you, if
you are a director. Your obligations may include:
o
pay as you go (PAYG) withholding
o
superannuation guarantee
o
fringe benefits tax (FBT).
You have responsibilities from the day your employee (or
contractor) starts working for you to the day they stop. You
also have some responsibilities if you stop being an employer
altogether.
Preparing to engage workers
One thing you must do is make sure your workers are legal –
that is, they must be Australian citizens, permanent residents
or non-citizens with Australian visas that allow them to work.
Employee or contractor
Pay as you go (PAYG) withholding

You will need to withhold tax from:
o
employees
o
contractors who have a voluntary agreement
with you
o
contractors who do not provide you with an
ABN
Super
Fringe benefits tax (FBT)
http://www.ato.gov.au/Business/Employers/
Paying workers

For each worker payment period, you will need to:
o
act on information provided by employees in
their Tax file number declaration (NAT 3092), Withholding
declaration and Withholding variations
o
withhold at the appropriate rates from
contractors under a voluntary agreement and contractors who
have not quoted an ABN
o
determine the required amount to withhold
o
keep the necessary PAYG withholding
records.
Guide to pay as you go (PAYG) withholding
5.2. Describe how GST
systems are set up
and administered in
Employers
You may have tax and superannuation
obligations if you employ or contract
workers into your business, either full-time
compliance with
current legislation.
or part-time. This includes your family
members and you, if you are a director.
Your obligations may include:
pay as you go (PAYG) withholding
superannuation guarantee
fringe benefits tax (FBT).
You have responsibilities from the day your
employee (or contractor) starts working for you to
the day they stop. You also have some
responsibilities if you stop being an employer
altogether.
http://www.ato.gov.au/Business/Employers/
5.2 Who must register?
If you carry on a business, you must register for GST if your
GST turnover is at, or above the GST turnover threshold, that
is, it is $75,000 or more .
You can register by:

visiting business.gov.au

phoning 13 28 66 to obtain the appropriate form

ABN registration for individuals (sole traders) (NAT 2938)

ABN registration for companies, partnerships, trusts and
other organisations (NAT 2939)


asking your tax agent or BAS agent.
What does being registered for GST
mean?
If you are registered or required to be registered for GST, you
include GST in the price of most goods and services you sell.
See The types of sales you make and Issuing and obtaining
tax invoices for when you do and do not have to include GST.
You must complete an activity statement every month or
quarter, or an annual GST return to:

report and pay the GST on your sales

claim credits for any GST included in the price of your
business purchases (provided you have a tax invoice and
you are entitled to claim a GST credit).
Register for Goods & Services Tax (GST) |
Registrations & licences
GST applies to most businesses across Australia
and it’s highly likely that your business will be
affected by the tax.
Registering for GST is necessary if:
your business has a GST turnover of $75,000 or
more ($150,000 or more for non profit
organisations)
you provide taxi travel as part of your business,
regardless of your GST turnover.
To register, you’ll need to complete an application
form. If you want to apply for an Australian
Business Number (ABN) at the same time you
can use the same form.
You need an ABN to register for GST, as the ABN is
part of the GST system. Your ABN will also be
your GST registration number.
http://www.business.gov.au/BusinessTopics/Regi
strationand
licences/Registerfortaxation/Pages/RegisterforGo
odsandServicesTax(GST).aspx
6. Building
contract
obligations.
6.1. Describe how you 6.1 Small jobs contracts
Residential building work worth between $1,001 and $5,000 must
could select the
be covered by a 'small jobs' contract which includes the following
minimum information:
correct form of
contract for a

the date of the contract

names and signatures of both parties
project.

the contractor's licence number
 To what price is
a brief description of the work, and

the price (if known).
a contract
required
Contracts for large jobs
Residential building work worth more than $5,000 requires a more
6.2. How would a
extensive home building contract and it must contain:
builder carry out
contracted work in

accordance with the

contractual
obligations
applicable to both

parties and what 
are the obligations.
6.3. Describe how to 
meet the
‘conditions of a 
contract’, how to
gain approvals, and

how financial
contract matters 
are met.






the date that it was signed by both you and your
contractor
your name and the exact name on your contractor’s
licence card and the licence number (go to our Home building
online licence check to make sure the details are correct before
you sign a contract)
a sufficient description of the work to be carried out
plans and specifications attached
relevant warranties required by the Home Building Act
1989
the contract price, which must be prominently displayed
on the first page and a warning with an explanation if the contract
price is subject to change or if the price is not known
a clear statement setting out the cooling-off period of five
clear business days after being given a copy of the contract where
it is valued over $20,000
a checklist of 12 items
a caution about signing the contract if you cannot answer
yes to all items in the check list
a note about your entitlement to a copy of the signed
contract within five days of signing
a note that the contractor must give you a home warranty
insurance certificate if the contract is valued over $20,000 (or
$12,000 if the contract was entered into before 1 February 2012)
a statement of acknowledgment by you that you have:
i) read and understood the Consumer building guide
ii) completed the check list and answered yes to all items on it
a clause that states that all plans and specifications to be
done under the contract (including variations) are taken to form
part of the contract
a clause that states that any agreement to vary the
contract or any plans and specifications must be in writing and
signed by you and your contractor
a clause that states that the work will comply with:
i) the Building Code of Australia, to the extent required under the
Environmental Planning and Assessment Act 1979
ii) all other relevant codes, standards and specifications that the
work is required to comply with under any law
iii) the conditions of any relevant development consent or
complying development certificate
a clause that states that the contract may limit the
liability of the contractor for failure to comply with the above work
compliance clause if the failure relates solely to:
i) a design or specification prepared by or on your behalf of the
owner or a design or specification required by the owner if the
contractor has advised the owner in writing that it contravenes the
clause referred to immediately above.
Caution. Contact the insurance company shown on the home
warranty certificate to check that the certificate is valid.
Important. The builder or tradesperson must give you a copy of
the contract within five business days after you sign it (the
weekend, NSW public holidays and 27-31 December [inclusive] do
not count).
7. Industrial
relations
policies and
obligations
7.1. List and
summarise any
relevant industrial
relations policies
7.1 Training 7.6 training.nsw.gov.au
http://www.industrialrelations.nsw.gov.au/biz_re
s/oirwww/pdfs/Home_building_brochure.pdf
relevant to
housing
construction
.
and obligations and
briefly describe how http://www.industrialrelations.nsw.gov.au/oirww
to apply them.
w/Industries_and_Awards/Home_building_online
_guide/How_does_the_national_system_affect_
my_business.page?
Employment may be under this award:
MA000020 - Building and Construction General Onsite Award 2010
7.2. What is the
difference between
a contractor and a 7.2 Workcover handles this;
sub-contractor.
A standard employment relationship consists of workers and
employers. A worker, for workers compensation purposes, is
defined as:
‘a person who has entered into or works under a contract of
service or a training contract with an employer (whether by way
of manual labour, clerical work or otherwise, and whether the
contract is expressed or implied, and whether the contract is oral
or in writing)'.
A contractor is more likely to:






be engaged to carry out a particular task using his or her
own skill and judgement
employ others, delegate or sub-let work to another
be paid on the basis of a quotation for the job
supply his or her own tools and materials
carry on an independent business in his or her own
name or under a business or firm name
be affected by PAYG tax arrangements.
Please note that an ABN by itself is not a definite indicator of a
person(s) status.
A worker is more likely to:





be subject to direction from the employer as to the work
to be performed and the time and manner in which it is
performed
be required to actually carry out the work
be paid on a time basis
have tools and materials supplied by the employer
work exclusively for a single employer.
NOTE: A person may have been hired as a contractor and be a
contractor for other purposes such as tax, but still be a worker
for the purpose of workers compensation.
It should be noted that the status of a person for tax purposes
bears no direct relationship to that person's status as a worker
for workers compensation purposes.
7.3. List and
summarise the
relevant awards that
are applied to
contracts.
7.4. How are
workplace
agreements arrived
at and
administered.
7.5. Discuss how your
company may
ensure that
discrimination and
harassment are not
practised in the
workplace.
Look through textbook for this and summarise in
your words
7.4 Workplace agreements are through fairwork
australia
7.5 Information on this should be available in
the builders office for all employees. It may
be information leaflets or directions to the
workcover site.
Firstly find out if what discrimination and
harassment is
Bullying at work is repeated, unreasonable
behaviour directed towards a worker, or a
group of workers, that creates a risk to their
health and safety.
More information on bullying
The topics below have answers to common
questions or call 13 10 50 for more
information.
• What is workplace bullying?
• What is not considered workplace bullying?
• Who has duties in relation to workplace
bullying?
• What are the benefits of preventing
workplace bullying?
• What can I do if I am being bullied at work?
• I have reported bullying at work but it is still
happening. What can I do?
• What can WorkCover do about bullying in
my workplace?
• How do I make a complaint to WorkCover
about workplace bullying?
•
What information is available on workplace
bullying?
7.6. Discuss the
process and current
7.6 NSW training is regulated by Education and
regulation for
Communities NSW
training
2. Checklist for employers
agreements.
This checklist covers the important steps that
occur during the apprenticeship or
traineeship.
• The employer and prospective apprentice or
trainee complete and sign the Training
Contract with the assistance of their
Australian Apprenticeships Centre (AAC).
• A training plan proposal must be prepared
for all apprenticeships and traineeships
except school-based apprenticeships and
traineeships. The employer’s nominated
registered training organisation (RTO) must
endorse the training plan proposal.
• For school-based apprenticeships and
traineeships, a full Training Plan must be
prepared by the RTO in consultation with
the employer, apprentice/trainee,
parent/caregiver and school representative
and lodged with State Training Services.
• The RTO will charge an enrolment fee that is
payable by the apprentice/trainee or the
employer. Some categories of apprentices
and trainees may be entitled to a fee
exemption - check with the RTO for details.
• The RTO may also charge an employer
contribution fee for training delivery.
• The AAC checks the training contract and
training plan proposal and then submits
them to State Training Services for approval.
• For some applications where specific industry
requirements or pre-requisites apply,
additional information must be provided to
support the training contact application –
for example:
undertaking child-related employment
training to obtain credit for a reduced term
permanent residency or specific visa
categories
AACs can advise employers about State
Training Services’ requirements for any
additional information
• Apprentices/trainees enrol with the selected
RTO
• The employer and apprentice/trainee receive
an approval letter from State Training
Services
• The date the Training Contract becomes
binding is specified in the approval letter
• The Registered Training Organisation will
develop a full Training Plan in consultation
with the employer and apprentice/trainee
and provide them with a copy – this must
be developed within 12 weeks of the
approval of the training contract.
• Employers should check with their AACs
regarding eligibility for incentive payments
from the Australian Government
• Apprentices/trainees should also check with
the AAC regarding their eligibility for travel
and/or accommodation allowances to
attend off-the-job training and other
financial incentives
Application and Approval
After Approval
A guide to apprenticeships and traineeships in
NSW 8
• Employers should check regularly with their
RTO to make sure that the
apprentice/trainee is attending off-the-job
training (where appropriate) and is making
satisfactory progress towards achieving
their qualification. The Training Plan should
be reviewed with the RTO every six months.
• Employers and their apprentice/trainee must
notify State Training Services directly or
through their AAC if they wish to make
changes to the training arrangements (e.g.
cancellation, transfer or suspension) or vary
the training contract or training plan (e.g.
change of completion date, change of RTO,
change of qualification or change in mode
of training delivery).
When the apprenticeship/traineeship is
nearing completion:
• Once the apprentice/trainee has been
notified that they have completed their
formal training, State Training Services will
send a letter to all parties. The parties then
have the option of applying for Competency
Based Completion and should contact State
Training Services to advise a mutually
agreed completion date of the
apprenticeship/traineeship.
• If however, the apprentice/trainee has not
successfully completed the formal training,
the employer must notify State Training
Services prior to the expected completion
date of the training arrangement. If more
time is needed to complete the
apprenticeship/traineeship the employer
must contact State Training Services
immediately to arrange an extension (prior
to the expected completion date).
• The employer and apprentice/trainee may
jointly apply for Competency Based
Completion of the
apprenticeship/traineeship before the
nominal term indicated in the Vocational
Training Order (VTO) providing that the
apprentice/trainee has been issued with
their qualification by the RTO and the
employer considers that they are
competent to industry standard.
Employers must:
• Advise their apprentice to apply for a licence
if required by the industry in which they
work. More information regarding licensing
is available in Section 11.4
• Check with their AAC to see if they are eligible
to receive any incentive payments that may be
available after completion of the
apprenticeship/traineeship.
7.7. Describe how your
company’s
reference material
for access to
industrial relations
or legal information
could be made
available to
employees.
7.7 Setup a filing system in the Office that is made
available to employees so they can access the
relevant information they need. The complexity of
this would depend on the size of the enterprise.
8. Dispute
resolution
processes.
8.1. Describe how your 8.1 In workbook: Pg 97 to 114
organisation will
Resolving building disputes
apply its dispute
Things do not always go to plan when you are building or
renovating, but there are steps you can take to help resolve
resolution and
disputes between you and your home building contractor.
It is important to develop and maintain positive communication
customer
with your builder or tradesperson. If people in a home building
complaints policy
dispute do not speak to each other about the problem, it becomes
very difficult for the issue to be resolved.
processes. (For
NOTE: The term 'residential building work' is widely used in this
section and broadly means any work involved in, or in
example, refer
coordinating or supervising, the construction, alteration or
people to your
additions, or repair, renovation, decoration or protective
treatment of a dwelling.
policy). Don’t list
Fair Trading also deals with complaints about specialist work (ie.
electrical wiring, plumbing, gas-fitting or airthe whole policy
conditioning/refrigeration) in non-residential buildings.
here.
Step 1: Talk about it
Step 2: Write a letter
Step 3: Contact Fair Trading
Step 4: Notify your insurer
Step 5: Building inspections
Home Building Advocacy Service
Claim on home warranty insurance
http://www.fairtrading.nsw.gov.au/ftw/Tenants_
and_home_owners/Home_building_and_renovati
ng/Resolving_building_disputes.page
8.3. Describe how your 8.2 File them in the office and follow any
regulations for record keeping. (research
company will
regulations and summarise here)
document and
record outcomes of
disputes, and how
those records will
be maintained.