Week 10 exam

1.Listand describe the considerations a builder would prioritise where ordering materials for a residential building construction project -10 marks 

a.Supply clear accurate specifications to prevent problems on delivery

b.Lead time – where does this item sit on the site critical path? Is the item being accessed from another country?

c.Store on site – brick, roof tiles, pallets of tiles, etc

d.Store in sheds and containers – windows, doors, pc items, cement/lime, wall and floor tiles etc

e.Deliver and install – garage doors, electrical and plumbing rough in

       List and describe four considerations a builder would prioritise when ordering subcontract trade/labour for a building construction project -8 marks

a.Supply clear accurate specifications to prevent problems with quality and quantity

b.Ensure they can deliver – on some difficult contracts tenders will overprice so that they will lose the job without losing face

c.Ensure that it is clear in the specification what materials they have to supply and fix

d.Ensure that the sub-contractor uses the systems and materials required eg waterproofing contractors

e.Ensure that your sub-contractors have the correct insurances and have safe work method statements

2.“Builders have to control the purchase of materials for various project” James 2018

Do you agree with the sentence? Explain your response. -4 marks 

List and describe for reasons for the control required. -8 marks

Yes, I agree. Because a builder must control safety storage, installation of building materials and prime cost items, without taking risks

Here are the reasons for the control required:

a.To keep costs to a minimum by obtaining materials to the best advantage in relation to discounts for quantity and forward buying.

b.To be able to select the best source of supply (price and assurance)

c.To ensure that materials and services do not hold up the critical path

3.Explain what effect the “quantity ordered” has on purchasing for a building project? 6 marks

Firstly, timing, transport and storage will affect the “quantity ordered”, building materials are usually heavy and often have a significant delivery cost. Placing orders and take delivery at the wrong time can be costly if too early (possibility of theft, physical damage or weather damage) or too late (holds up the job by disrupting the critical path and or items may be out of stock)

Secondly, balance ordering and site requirements. Sites can have large amounts of storage or they can have very limited storage which has to be taken into account when ordering.

4.List 6 Acts/Regulations and/or codes that are applicable to onsite construction. Explain fully how are these pieces of Legislation are applied on site?  -24 marks

A.WHS Act and Regulation, to improve work health and safety and workers’ compensation arrangement across Australia, a business owner must meet the WHS requirements set out in the Acts and Regulations in NSW.

B.Home Building Act, it is the principal piece of legislation regulating the home building industry in NSW. It provides homeowners with a level of protection from the risks associated with building or renovation a home, which represents a substantial investment for most homeowners

C.Workers Compensation Acts, aims to provide timely, safe and durable return to work through effective injury management and income support to injured workers.

D.Environmental Planning Assessment Act, the act incorporated a three-tired system of state, regional and local levels of significance, and required the relevant planning authority to take into consideration the impacts to the environment and the community of proposed development or land-use change.

E.Heritage Act, provides for the conservation of environmental heritage items in NSW

F.NCC/BCA, the NCC provides the minimum necessary requirements for safety, health, amenity and sustainability in the design and construction of new building and new building work in existing building throughout Australia.

5.Describe what is required by legislation in regard to site safety signage? -4 marks

1). The principal contractor’s name and telephone contact numbers

2). The location of the site office for the project, if there is one

3). Is clearly visible from outside the workplace, or the work area of the workplace, where the construction project is being undertaken


A.How does a builder ensure that the residential process he/she is involved with a carried out in accordance with codes, and standards concerning construction, insurance, sustainability and environmental matters.   -10marks 

system in place, tool box talks, training, watch and supervise

B.Provide two examples of different typical building business disputes between customer and builder and how they may be resolved (describe how and why the dispute may arise) -10marks 

running late, quality    guide for intolerance

C.Describe an “acceptable informal process” that may be used to bring disputing parties together in building project. -5 marks

mediation – A third party acts to bring the disputing paries together for the purpose of dispute settlement. the third party will advice them on ways in which the dispute can be resolved

7.As a manager of a small building business list and describe 5 items to be considered when setting up the payroll system to ensure compliance with current legislative requirement. -15 marks

Ask a bookkeeper or accountant for advice about best practice

Setup a payroll system that’s easy to use and works

Ensure the payroll system can handle all the necessary employee records (name, address, TFN, bank account detail, etc.)

Setup the payroll schedule and tax filing date

Administer the payroll account

How will this be achieved? -5marks

8.How does a builder setup GST system and ensure that the system is administered in compliance with current legislation. -6 marks

Registering for GST

Report and pay GST monthly(GST turnover>=$20 million), quarterly(GST turnover<$20 million), annually(GST turnover<75,00)

Issuing tax invoices

Claim GST credits

Accounting for GST

Lodge BAS(business activity statement) or annual GST return

9.List and explain 2 relevant industrial relations issues that are of concern to builders. -8 marks

Enterprise agreement, trade awards, fair work act, 

Trade awards, while there has been a large reduction in the number of awards and a dramatic decline in the number of wage classifications per awards, modern awards still spell out minimum wages and conditions for a wide range of industries, occupations and skill levels. 

NES national employment standard, the standards specify minimum requirements for access to leave, hours of work, and termination and redundancy pay, though some provision do not apply to casual employees. 

10.How do we ensure that subcontracted companies comply with the principal contractor’s company policy and obligation? -4 marks

Put all things in a contract or an agreement and sign it.

11.“Training of employees is usually considered to provide benefits to the employer” Jones 2018

Describe three benefits to employers that the provision of “training” to employees is expected to generate. -6marks

1.Increased job satisfaction and morale among employees

2.Increased employee motivation

3.Increased efficiencies in processes, resulting in financial gain

4.Increased capacity to adopt new technologies and methods

5.Increased innovation in strategies and products

6.Risk management