Legal Risk Management in Construction Project

Question: Discuss about the Legal Risk Management in Construction Project. Answer: Introduction Construction projects are of major importance for development of proper operations and the infrastructure (Cao et al. 2015). They had been made for developing new sites or improving the existing sites with better facilities. There is some legislation in the construction project that the project manager must follow for keeping their construction project optimized. The following report would provide an analysis of the various legislation that the project of constructing a building by OReilly Architects. The first part of the assignment would summarize the scope of the construction project and evaluate it for the project mentioned. The second part would point out the various legislation that construction project might have to follow for keeping their project operations in synchronized. Summary of Scope Statement for the Project The scope statement of the construction project includes the formation of a proper construction project plan and implementing the plan for constructing the building. The construction project is not limited to the processes included for constructing the required building (Fulford and Standing 2014). The scope of the project includes use of appropriate project management tools and methods for analyzing the requirements of the project and developing an appropriate plan of operation. It is anticipated that the construction of the project would consist of some deliverable like, ground floor refurbishing, first floor refurbishing, making of stairs, roof development, entrance plan, hardware components inclusion, electrical installation, and garden section development. The scope statement would be helpful for developing an appropriate stabilized operation function in the project operations. The management of the project operations would be helpful for forming an affirmative influence of the inbuilt statement in the organization. The project scope would provide an analysis of major components in the operations of the construction project. The construction project had formed the inclusion of more advanced and better building structure by OReilly Architects. The formation of scope statement had suggested the methods for carrying out the plan of implementation in the construction project. The project deliverable would include the formation of a plan for construction project of refurbishing the buildings. It is important for keeping the plan in synched with the operational requirement in the project (Hwang, Zhao and Toh 2014). The project deliverable would also consist of development of specific plan for the operations of the project. It is very crucial for keeping track of the available construction processes. Legislation for the Construction Project The legislation is set of rules and obligations set by any government for performing any activity or operation (Kanamori 2015). If any person or organization is found to disobey the legislation, it is compulsory that they could be penalized by the state government. There are various types of legislation that can be implied for the operations of the construction process. These legislations are preceded and gradually obligated by the state government of Australia. The project of constructing a building or modifying it (as for the project of OReilly Architects) must follow a set of rules and they have been listed below, Name of the Legislation Its Description Role in the construction project Construction legislation by National Construction Code The National Construction Code is a council of Australian government that has incorporated on-site requirements and plumbing operations in form of a single set of code. The building construction plan of ORielly Architects would have to follow the legislations by the NCC for getting their site planning and construction process approved by the Government Construction legislation by Procurement and Construction Council The Australian Procurement and Construction Council is agency of members of 11 used for procurement, asset management, and construction method. They have set some guidelines for the activities of construction in alignment to the Australian, state and territory government. The procurement and construction council would provide the necessary guidelines for the activities of the construction project of ORielly Architects. Construction legislation by Building Code board The Australian building code board would be responsible for managing and developing uniform approach for the building process. The codes and standards are helpful for forming an appropriate board of employment for the council of construction board. The regulatory system would form an alliance with the inbuilt operational system of construction board. These standards and regulations would provide an effective operational operation system for the construction process of ORielly Architects Commercial Building Disclosure legislation The commercial Building disclosure legislation is followed for forming energy efficient operational requirements in the board for the commercial operations of the construction board. The legislation would provide the compliance information for the operations of construction process. The floor planning of the building modification by ORielly Architects would have to follow the commercial building disclosure agreement for their commercially used building portions. Fair Work Building and Construction legislation The Fair Work Building and Construction legislation is made for regulating the effective and smart workplace relations for construction and building processes. The use of such legislation would provide the benefit of compliance activities for the operations of construction at ORielly Architects. House Energy Rating Schemes Legislation The house energy rating scheme of Australian government is a measure of the thermal schemes in the household. There are some specific values of rating for the energy based thermal performance of the buildings in Australia. The construction project of ORielly Architects would have to follow the thermal performance scheme set by NatHERS and Australian Government for making the house efficient power consumption. Table 1: Construction Project Legislation and its function (Source: Osei-Kyei and Chan 2015, p. 1345) Types of Contracts and Risk Appropriation for the Construction Project The construction projects have to follow a number of norms and regulations and it includes making of many contracts (agreements) such as building and construction management, standard form for negotiation, constructing excellence contract, measured term contract, prime cost contract, major construction contract, repair and maintenance contract, and intermediate contracts. These contracts are generally influenced by the formation of the specific objectives in the project. In the project of constructing and developing buildings the two contracts that would be required are Building and Construction Project and the second one is external contractor agreement. These two types of contract would be needed for the initialization of the core construction activities of the project. Building and Construction Project Contract: The building and construction project contract of ORielly Architect would require forming an effective and concise building and construction project agreement. In this agreement the two parties are benefactor and beneficiary to be acknowledged for the development of the project operation. The building construction project are accustomed for forming the most suitable and effective method in the development of project operations. The building and construction project agreement are applicable for providing the assistance for the improvement in the operational project. It would show the extent of operations that would be required for the modification in the construction project. External Contractor Agreement: The external contractor agreement is made for supporting the major outbreak of the operations of the contraction. The external contractor would be helpful for providing the benefit of support and helping hand to the operations of the construction project. It is probable that the operations of the project would be supported by the use of some external helping hands (Porwal and Hewage 2013). The deployment of the supplementary helping hand would provide the benefit of ensuring the operations construction project. The external contractor agreement would be formed by the basis of benefits and working conditions in the construction project. The agreement had formed by the forming the inclusive and major output for the operations in the project. Risk Apportion in contracts: The two contracts had been made for ensuring that the operations of the project are completed in the stipulated time frame. The deployment of efficient operational documents and agreements had formed the ease of operations in the construction project (Smith 2014). There are possibilities that the operations of the project might suffer due to various risk factors. The first agreement of building and construction project contract of ORielly Architect would cover the risk of quality and misappropriation in the organization. The second contract would be helpful for providing the risk apportion in the operations of the construction project. Conclusion The report had been made for evaluating the legislation in the construction project and forming an analysis of the various legislation that the project of constructing a building by OReilly Architects. The scope statement of the construction project had not been limited to the processes included where as it provides analyzing of the requirements of the project and developing an appropriate plan of operation. 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