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Here you will find the latest news and advice
from the Formwork Industry Association. 

Keeping you up to date with FIA Events, Training,
News and Articles on best practice and safety. 


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  • 6 Apr 2020 11:35 AM | Anonymous

    It's time for everyone in the building and construction industry to take Coronavirus seriously. Some building sites have implemented good hygiene but ALL sites must do this NOW. A message from MasterBuilders.

    Social distancing is vital but it is NOT happening on many sites. This MUST change NOW. Everyone - business owners, managers, site managers, all managers, subcontractors and workers, it is everyone's responsibility to work together to make social distancing happen.

    Social distancing will mean slower work but slower work is BETTER THAN NO WORK. Everyone on in the industry owes it to each other to do what it takes to make social distancing work on building sites.


    National campaign launched to promote social distancing on building sites

    1 April 2020 - MasterBuilders.

    A national advertising campaign has been launched to promote social distancing and strict hygiene on the nation’s building sites.

    Denita Wawn, CEO of Master Builders Australia said the campaign would run for the next four weeks and was targeted to everyone working in the building and construction sector because everyone has a responsibility to ensure that social distancing and good hygiene are being practiced.

    “Business owners, employers, construction workers, subcontractors, site managers – everyone must be accountable for social distancing and strict hygiene not only on building sites but also off site when on breaks and before and after shifts,” she said.

    “As an essential industry it’s vital to the community and the economy that in this extraordinarily difficult time we can continue building and construction work to provide the livelihoods of 1 in 10 Australians and to support the viability of nearly 400,000 small businesses,” Denita Wawn said.

    “It’s important that the health and wellbeing of everyone in our industry and community remains our top priority which is why the industry is continuing to embed social distancing and strict hygiene practices on site. It’s also why we have joined forces with the CFMEU and the AWU to promote an even stronger safety culture as our industry and our community faces the Covid-19 crisis,” she said.

    “However, we do recognise the substantial cultural change that we are asking everyone in our industry to make. Everyone including workers, subcontractors and management are used to completing building projects as efficiently as possible. Social distancing is slowing work down, but slower work is better than no work and that is why we are asking everyone in our industry to step up and be accountable for doing the right thing to keep each other and the community safe,” Denita Wawn said.

    “There are 1.2 million people and nearly 400,000 small businesses in communities around Australia that go to work every day in our industry which provides the most full time jobs and is made up of the most SMEs than any other sector in the economy. That is why we have launched this campaign,” Denita Wawn said.


  • 6 Apr 2020 11:20 AM | Anonymous

    What Should you Be Doing?

    We all know that the possibility of COVID-19 infection is a real one.

    We also know that it is a workplace risk that needs to be managed by employers and Persons Conducting Businesses or Undertakings (PCBUs).

    The risk controls we need to develop and implement may be COVID-specific, but the way we go about identifying, assessing and eliminating or minimising them is the same way in which the safety laws require us to tackle any other workplace risks.

    So, you should be (at least) doing the following on a regular basis:

    1. Comply with Government directives and advice

    As a first and minimum step, your business should comply with national and state public health directions relating to COVID-19.

    They are available on the Departments’ websites and you should check them frequently to make sure you are working with the most current information.

    Current measures you should be taking include:

    • Reducing direct contact between workers and other persons, including:
      • Social distancing of at least 1.5 metres (and 1 person per 4sqm indoors),
      • Barriers or spacing between workstations, seated areas, etc.,
      • Modifying shifts and rosters to reduce peak periods,
      • Supporting flexible work arrangements where possible, including working from home.
    • Reducing environmental exposure, including:
      • Frequently cleaning and disinfecting of high traffic areas and shared surfaces,
      • Providing appropriate cleaning products and instructions for cleaning workspaces,
      • Providing amenities for personal hygiene and infection control,
      • Inspecting and reviewing air conditioning and ventilation systems.

    2. Keep consulting

    Your business must assess the risks of COVID-19 in consultation with workers, particularly when devising and implementing control measures to minimise the spread of the virus.

    You should also be consulting with the people with whom you share a duty to keep your workers and workplaces safe, such as building managers, co-commercial tenants and (potentially) landlords.

    We’re all in this together.

    3. Don’t forget regulator notifications

    Remember that PCBUs and employers may have notification requirements to safety regulators where any confirmed or uncontrolled exposure to serious illness, including COVID-19, occurs or where workers are admitted as in-patients in hospital as a result of exposure in the workplace.

    4. Make sure what you’re doing is working

    We all need to be regularly assessing the effectiveness of what we are doing to contain COVID-related infection risks in the workplace.

    Keep up to date with Government advice.

    Keep talking to your colleagues and fellow duty-holders.

    Our best resources are our public health authorities. Listen to them and do what they tell you to do. The safety regulators are following their guidance and expect businesses and workers to do the same.

    Not everyone is coming into the workplace now

    That’s just where we are now.

    You should be providing clear direction and guidance to workers about what is expected of them in terms of:

    • Knowing when to stay away from the workplace,
    • What they need to do if they become unwell,
    • What symptoms they need to know about,
    • Maintaining a safe working environment at home (we’ve put together a checklist of things to think about and you can access it here).

    If people are coming into work you need to make sure that they have access to a hygienic workplace and that they maintain social distancing when they are at work.

    Hygienic practices to be reinforced include:

    • Frequent and thorough hand washing,
    • Actively encouraging social distancing (including limiting access to other people in the workplace),
    • Covering mouths while coughing or sneezing,
    • Staying away from the workplace if they are unwell and encouraging them to seek medical advice.

    Please remember that some members of your workforce will have different infection risk profiles and you need to pay special attention to keeping them safe.

    Workers over 60 and indigenous workers over 50 can be more susceptible to infection and/or less able to fight off the virus if they catch it.

    The same goes for people with compromised immune systems or chronic illnesses.

    Workers from non-English speaking backgrounds may need access to translated material. Use available pictorial resources to get the message across.

    You need to properly assess the risk of infection for your specific workers and that the measures you take to keep them safe are targeted to their specific circumstances.

    Also remind workers that they have a duty to take reasonable care for their own health and safety.

    The safety laws provide that workers have a right to cease, or refuse to carry out work, if they have a reasonable concern that carrying out work would expose them to an immediate or imminent risk of COVID-19. That worker must, however, remain available to carry out suitable alternative work, e.g., work from home. Where such work is not available, PCBU’s and employers may exercise their rights to ask workers to take leave or stand down workers where appropriate.

    On our website you can access our COVID-19 Critical Information for Employers for each State and Territory together with our infographic factsheets.

    Are your workers at home OK?

    Most of us are working from home and we all know that presents unique challenges that we have to overcome.

    Keeping track of workers’ mental health is one such challenge and it needs to be one of your priorities.

    Most people are worried about their children, their jobs, their mortgages and rents, whether they are feeling hot or tired because they’re sick and even just how they are going to fill in today and tomorrow.

    Keep talking to your workers. Let them know they are being heard and that they are front of mind.

    Talk to them about how work will be conducted differently to reduce infection risk and facilitate flexibility and consider work modifications to help workers manage their workload and family and carer responsibilities.

    Give them information about their entitlements that they can access where they are caring for family members or become unwell with COVID-19.

    Be open and transparent about how COVID-19 risks may impact upon their working arrangements.

    Remind your workers that they are valued and that what happens to them and their families matters to all of us.

    Encourage discussions to let workers to share and learn from others.

    Make EAP and support services available and let your colleagues know how to access them.

    Encourages workers to stay connected through regular communication, e.g., by phone or videoconferencing. Consider practical measures such as daily catch-ups.

    Be aware of behaviour and communication changes in workers and recognise signs that may indicate someone is struggling.

    Encourage work breaks and physical activity as permitted by law.

    There’s lots we can do to help each other, so let’s get out there and do it.

    We have prepared an example Checklist for Working at Home which can be adapted to your specific circumstances to makes sure you and your workforce are assessing the risks of working at home.

    What happens if a colleague is infected?

    There are no specific provisions in the safety legislation that deal with when a PCBU or employer may direct a worker to stay away from their usual place of work.

    PCBUs and employers should, however, ensure that a worker confirmed to have COVID-19 does not return to work while they are infectious or as otherwise directed by health authorities.

    Make sure that you have consulted with your workers about what you’ll each do if someone at work becomes infected with COVID-19.

    This isn’t about workplace politics or IR issues. This is about all of us doing our part to make sure we stay safe.

    Prepare and follow your Pandemic Plan

    Businesses should also develop a pandemic plan in consultation with workers. That plan should cover:

    • Prevention and preparedness,
    • Response – initial action,
    • Response – targeted action, and
    • Recovery

    Please see our COVID-19 page on our website for further information on pandemic plans.

    Please contact us if you have any questions as to how to address COVID-19 risks in your workplace.

    SYDNEY

    John Makris
    Partner
    +61 2 9169 8407
    john.makris@kingstonreid.com

    Erica Elliott
    Special Counsel
    +61 2 9169 8404
    erica.elliott@kingstonreid.com

    MELBOURNE

    Dominic Fleeton
    Special Counsel
    +61 3 9958 9619
    dominic.fleeton@kingstonreid.com

    PERTH

    Michael Stutley
    Partner
    +61 8 6381 7060
    michael.stutley@kingstonreid.com



  • 6 Apr 2020 11:19 AM | Anonymous

    The team at FIA Legal Partners, Kingston Reid have been hard at work over recent weeks developing resources to support businesses in responding to the extraordinary impacts that the COVID-19 pandemic has had on workplaces.

    We’re pleased to share with you their dedicated COVID-19 resources page, a one stop shop for all of our COVID-19 related resources, which will continue to be updated as further developments arise.

    COVID-19 Resources Page

  • 6 Apr 2020 10:44 AM | Anonymous

    Media Release from Rob Stokes, Minister for Planning and Public Spaces.

    Construction sites can now operate on weekends and public holidays under new rules introduced today by the NSW Government to support the industry during the COVID19 pandemic.

    Planning and Public Spaces Minister Rob Stokes said the move allows workers to abide by social distancing rules while keeping construction projects progressing by allowing building work to be spread across more days of the week.


    “The construction and development sectors, which make up almost 10 per cent of NSW’s economy, will be vital in keeping people in jobs and keeping investment flowing over the coming weeks and months,” Mr Stokes said.

    “We’re doing what we can to support the industry in line with the current medical advice by extending weekday construction site operating hours to weekends and public holidays.

    “The extended hours allow the industry to facilitate social distancing on construction sites, while minimising the potential for lost productivity during the pandemic.”

    The Environmental Planning and Assessment (COVID-19 Development – Construction Work Days) Order 2020 is now in place and will continue until the COVID-19 pandemic is over, or the advice of NSW Health changes.

    “In NSW there are almost 400,000 people employed in the property and construction industry and we are committed to doing everything we can to keep each of them in work, but most importantly, to keep them safe and healthy,” Mr Stokes said.

    The Environmental Planning and Assessment Act 1979 was amended on 24 March to enable Mr Stokes to issue orders that override normal planning controls during the COVID-19 pandemic to ensure the health, safety and welfare of communities.

    Compliance with this Order will be monitored and reviewed if there any adverse impacts on the community or from a public health perspective.


  • 6 Apr 2020 10:21 AM | Anonymous

    The following is a summary of key relief incentives released by the NSW government and the City of Sydney. An update from FIA Finance and Business Advisory Partners, HLB Mann Judd.

    NSW stimulus

    (The following information is correct as at 3 April 2020)

    Stage One: announced 17 March 2020

    • Waiver of a 25% of 2019-2020 payroll tax for businesses with grouped Australian taxable wages of up to $10 million.

    How to apply: Revenue NSW will automatically apply 25% reduction once the businesses have lodged their 2019-2020 annual payroll tax reconciliation. In the meantime, these eligible businesses do not need to pay their March, April and May monthly payroll tax.

    • Fast track of the next round of payroll tax cuts will raise the threshold limit to $1 million for the 2020-21 financial year

    How to apply: Automatic, expected to be applied to monthly returns from 1 July.

    • Waiver of some charges and licencing fees for small businesses including bars, cafes, restaurants and tradespeople.

    The NSW State Government are yet to specify eligibility and which fees will be waived.

    • $250 million to employ additional cleaners of public infrastructure including public transport and schools as well as bringing forward of maintenance on public assets, bring forward capital works projects.

    Stage Two: announced 27 March 2020

    • Businesses with payrolls of over $10m: deferral of payroll tax for 6 months.
    • Businesses with payrolls of less than $10m: 3 month waiver (as announced on 17 March) and an additional 3 month deferral of payroll tax.
    • Deferral of gaming machine tax for clubs, pubs and hotels for 6 months.
    • Deferral of parking space levy for 6 months
    • Deferral of rent for commercial tenants in Government-owned properties with less than 20 employees for 6 months.

    Stage Three: announced 3 April 2020

    • NSW small business will receive grants up to $10,000. The eligibility criteria are:
      • Have between 1-19 employees and a turnover of more than $75,000
      • A payroll below the NSW Government 2019-20 payroll tax threshold of $900,000
      • Have an Australian Business Number as at 1 March 2020, be based in NSW and employ staff as at 1 March 2020
      • Be highly impacted by the Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020 issued on 30 March 2020
      • Use the funding for unavoidable business costs such as utilities, overheads, legal costs and financial advice
      • Provide appropriate documentation upon application.

    How to apply: Eligible businesses will need to apply through Service NSW. The application within a fortnight of the announcement remain open until 1 June 2020.

    City of Sydney Council relief package

    • Rent relief for eligible tenants.
    • Refunds for venue fees and advertising bookings.
    • Coverage of costs for aquatic centres so casual workers are paid.
    • Waiver of outdoor dining fees and fines for using a footpath without a permit.
    • Parking fines will only be issued if there is “an imminent public or environmental health or safety risk”.

    For all the latest updates on the NSW stimulus package, please visit preview.nsw.gov.au/Covid-19 

    It is likely additional measures will be announced in the future as the COVID-19 crisis continues to change almost daily and governments continue look to assist business and jobs.

    Read more about the Federal Government incentives:

    First Federal announcement

    Additional stimulus measures

    We are here to help. Speak to one of our tax partners should you wish to learn more.

    Peter Bembrick
    Partner - Tax Consulting
    E: pbembrick@hlbnsw.com.au


  • 6 Apr 2020 10:09 AM | Anonymous

    Federal Government's response to the coronavirus pandemic.

    Tax update from FIA Finance partner, HLB Mann Judd.

    In response to the Coronavirus crisis, the Federal Government has outlined new measures in a stimulus package worth nearly $18 billion. SMEs, pensioners and selected sectors such as tourism will be the biggest beneficiaries in an effort to boost the economy and save jobs. Below is a summary of the measures outlined in the plan.


    Support for business investment

    The following measures are designed to assist Australian businesses and economic growth in the short term:

    Increasing the instant asset write-off

    • Threshold increased from $30,000 to $150,000
    • Applies to businesses with aggregated turnover of less than $500 million
    • Applies from today’s announcement to 30 June 2020
    • The $150,000 threshold applies on a per asset basis so eligible businesses can immediately write-off multiple assets
    • Applies for new or second-hand assets first used or installed ready for use by 30 June 2020.

    Investment incentive

    • A deduction of 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost
    • Applies to businesses with aggregated turnover below $500 million
    • Eligible assets are new assets that can be depreciated under Division 40 of the ITAA97 (i.e. plant, equipment and specified intangible assets) acquired after today’s announcement and first used or installed by 30 June 2021 (NOTE: This measure does not apply to second-hand Division 40 assets or capital works subject to Division 43)

    NOTE: the announcement did not reference the removal of the depreciation limit for cars.

    Cashflow assistance for business

    The following measures are designed to support employers, employment and improve business confidence:

    Boosting cashflow for employers

    • Will provide a tax-free payment up to $25,000 back to business, with a minimum payment of $2,000 for eligible businesses
    • Eligible businesses are those SME’s with aggregated annual turnover under $50 million (generally the prior year turnover)
      • The payment will be delivered by the ATO as a credit in the activity statement from 28 April 2020 when the business lodges its activity statement
      • Eligible businesses that withhold tax on their employees’ salary and wages will receive a payment equal to 50 per cent of the amount withheld, up to a maximum payment of $25,000
      • Eligible businesses that pay salary and wages will receive a minimum payment of $2,000 even where they are not required to withhold.
    • The ATO will deliver the payment as a credit to the business upon lodgement of their activity statements (with the minimum payment applied to the first lodgement)
      • Quarterly lodgers will be eligible to receive the payment for the quarters ending March 2020 and June 2020
      • Monthly lodgers will be eligible to receive the payment for the March 2020, April 2020, May 2020 and June 2020 lodgements (with the payment calculated at 3 times the rate (i.e. 50 per cent in the March 2020 activity statement).

    Supporting apprentices and trainees

    • Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage paid during the 9 months from 1 January 2020 to 30 September 2020( and this subsidy will be available to a new employer where the business is unable to retain an apprentice)
    • Employers will be reimbursed up to a maximum of $21,000 per eligible apprentice or trainee (i.e. $7,000 per quarter)
    • Eligible small businesses are those employing fewer than 20 full-time employees who retain an apprentice or trainee (with the apprentice or trainee being in training with a small business as at 1 March 2020)
    • Employers will be able to access the subsidy after an eligibility assessment is undertaken by an Australian Apprenticeship Support Network provider.

    Assistance for severely affected regions

    Funds will be available to assist during the next few months and over the year ahead, to ensure these communities are well placed to recover:

    Support for Coronavirus-affected regions and communities

    • An initial $1 billion allocation to support regions and communities disproportionately affected by the economic impacts of the Coronavirus (e.g. tourism, agriculture, education) that will be provided through existing or newly established Government programs
    • The Minister for Trade, Tourism and Investment will work with affected industries and communities to develop recovery plans and measures.

    ATO administrative relief

    • The Australian Taxation Office (ATO) will provide administrative relief for certain tax obligations for taxpayers affected by the Coronavirus outbreak, on a case-by-case basis
    • The ATO will setup a temporary shopfront in Cairns within the next few weeks with a dedicated staff specialising in assisting small business (and will consider presence in other regions as well).

    Stimulus payments to households

    This measure is designed to assist around 6.5 million lower-income Australians, including pensioners and social, security and veteran income support recipients:

    • The Government will provide a one-off $750 payment (with one payment per recipient)
    • The payment will be tax-exempt and will not count as income or Social Security, Farm Household Allowance and Veteran Payments
    • Eligible recipients are those residing in Australia and be receiving a payment specified by the Government (such as the Age Pension, Carer Payment, Newstart Allowance, etc) or hold a concession card on 12 March 2020
    • The one-off payment will be paid automatically from 31 March 2020 by Services Australia or Veterans’ Affairs.

    The ATO’s response

    In light of the Government’s stimulus package, the ATO will implement a series of administrative measures to assist Australians experiencing financial difficulty as a result of the Coronavirus.

    Unlike the bushfire relief measures which applied automatically, it will be up to businesses and individuals impacted by the Coronavirus will need to contact the ATO for assistance. A number of options available to assist impacted businesses include:

    • Deferring by up to 4 months the payment date of amounts due through the business activity statement (including PAYG instalments), income tax assessments, FBT assessments and excise
    • Allow business on a quarterly reporting cycle to opt into monthly GST reporting in order to get quicker access to GST refunds that they me be entitled to
    • Allowing businesses to vary PAYG instalment amounts to zero for the April 2020 quarter. Businesses that vary PAYG instalments to zero can also claim a refund of any instalments made for the September 2019 and December 2019 quarters.
    • Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities.
    • Working with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low interest payment plans.

    We will continue to share updates as they come in. Should you wish to learn more about stimulus package benefits, please contact your HLB Mann Judd tax consulting representative.

    Visit HLB Mann Judd’s COVID-19 Resource Centre for insights to you and your business during this challenging time.

    Due to the evolving situation, the above information is current as of the time of publication. Updates will be shared accordingly.


  • 6 Apr 2020 10:03 AM | Anonymous

    Last updated 3 April 2020 from SafeWork NSW.

    This guide is to help businesses (and other PCBUs) comply with their obligations under the Work Health and Safety Act 2011 during the global COVID-19 pandemic.

    Coronaviruses are a large family of viruses that can cause respiratory illness in humans and animals.

    COVID-19 is a new coronavirus – others include Severe Acute Respiratory Syndrome (SARS) and Middle East Respiratory Syndrome (MERS).


    Under WHS law all employers or businesses are required to take action to manage the risk of COVID-19 to workers and others in the work environment

    Businesses must comply with national and state public health directions in relation to COVID-19

    All workplaces must assess the risk (in consultation with workers) and look for ways to minimise the spread of the virus.  These may include:

    • ceasing non-essential work activities that involve close personal contact (less than 1.5m)
    • implementing controls to reduce direct contact with workers and customers, including:
      • social distancing of at least 1.5metres (1 person per 4sqm indoors)
      • barriers to create space at counters, between workstations, seated areas etc.
      • modifying shifts and rosters to reduce peak periods
      • actively supporting flexible work arrangements, including working from home.
    • Implementing controls to reduce environmental exposure, including:
      • inspecting and reviewing air conditioning and ventilation systems
      • increasing cleaning and disinfection of high traffic areas or shared surfaces
      • provide cleaning products and instruction for cleaning workspaces
      • provide instruction and amenities for personal hygiene and infection control

    Businesses (and other PCBUs) is required to notify us of serious illnesses (including COVID-19) arising out of the conduct of the business or undertaking:

    • illness requiring the person to have immediate treatment as an in-patient in a hospital
    • any confirmed infection to which the carrying out of work is a significant contributing factor, including any infection that is reliably attributable to carrying out work that involves providing treatment or care to a person, or that involves contact with human blood or body substances


  • 6 Apr 2020 9:53 AM | Anonymous

    COVID-19 will have a profound effect on the world. Preventative and responsive measures will leave no construction project untouched. The legacy of these effects will sorely test the robustness of construction contracts and relationships.

    Here are some key issues that construction industry participants should consider.



    DELAY AND EXTENSION OF TIME

    Project delays will arise from a variety of different causes, including:

    • reduced workforce, due to illness or preventative measures;
    • site closures;
    • road closures and travel restrictions;
    • government, principal or contractor imposed temporary shutdowns; and
    • delayed or cancelled orders for materials and equipment.

    When does EOT entitlement arise?

    EOT entitlement typically arises only for certain delay events (sometimes referred to as ‘qualifying causes’, ‘delay events’ or ‘extension events’). Typical relevant qualifying causes include the following:

    • force majeure events;
    • changes of law or government requirements;
    • variations;
    • acts or omissions of the principal;
    • industrial relations events (this generally excludes events limited to the site or which are caused by the contractor or its employees or subcontractors);
    • delay in access to the site; and/or
    • latent conditions.

    Contracts should be reviewed to consider:

    • What delays give rise to an EOT entitlement;
    • What are the notification requirements, including:
      • Time bars;
      • Estimates to time and costs; and
      • Updates for ongoing delay;
    • Exclusion of “concurrent” delay; and
    • Ensuring that accurate information flows from subcontractors or suppliers.

    FORCE MAJEURE

    There is no ‘standard’ force majeure clause. It is a creature of contract rather than a universal principle of law. Whether COVID-19 classifies as a force majeure event (and the consequences that flow) will be depend on the terms of a particular contract.

    Force majeure is commonly defined as an exhaustive list of specific events or as reference to a broader set of circumstances (e.g. “an event beyond the reasonable control of the parties”).

    Limitations to force majeure

    In many cases (including in some government contracts), the 11 March 2020 WHO declaration that COVID-19 is a pandemic will qualify as a force majeure event. The extent to which this triggers relief is often further limited such as to effects on the site where works are being performed (as opposed to effects on the supply chain, which are likely to arise far off site).

    Suspension and termination: not to be taken lightly

    Many force majeure clauses provide for a right of suspension and, where the effect (or suspension) endures beyond a specified period, a right to terminate may arise.

    Again, the existence of such rights will be dependent on the terms of contract. No suspension or termination should be undertaken lightly: taking a step which is inconsistent with the terms of the contract may be taken as a repudiation of the contract, exposing the party in breach to serious consequences. An attempt to suspend or terminate other than in accordance with the terms of the contract can carry catastrophic consequences, particularly in circumstances where the contract provides that caps on liability for damages do not apply for acts of “wilful default”.

    CHANGE OF LAW & GOVERNMENT REQUIREMENTS

    Change in law provisions may apply where a change in a legal or government requirement affects a contractor’s ability to perform its obligations. These changes typically entitle the contractor to claim an EOT and compensation for additional costs incurred as a result of the change. In the context of CODIV-19, where a delay is caused by legal requirement imposed by a government, this may qualify as a change of law.

    INSURANCES – DO THEY RESPOND?

    Insurance policies typically do not cover project delays. To the extent that policies do cover delays, they generally only cover delays caused by damage to the works or materials. In any case, parties should review their insurance policies to assess whether the relevant event will be covered by the terms of the policy.

    DOCTRINE OF FRUSTRATION

    A contract may become ‘frustrated’ when an event outside of the control of the parties makes a contractual obligation “incapable of being performed because the circumstances in which performance is called for would render it a thing radically different from that which was undertaken by the contract”.[1] The doctrine of frustration will apply regardless of whether or not the contract expressly provides for its application.

    Parties are not required to wait for an effect to happen to their contract, but as with COVID-19, they may rely on the fair assumption that a particular event will give rise to a particular impact on the performance of their obligations. The determination of the length and effect of the delay is to be made at the time of the interruption to the contract, without the benefit of hindsight.

    LOOK FORWARD TESTS

    Parties should also be conscious of contracts which contain a ‘look forward’ provision which provides for an early assessment of whether completion will be achieved by the completion date (or another date). Where this test is not satisfied, the principal may have a right to terminate the contract.

    Such terms should be carefully considered, in particular as to termination and show cause rights.

    Look forward test provisions are more commonly included in PPP and other Project Financing arrangements.

    WHAT ABOUT CONTRACTS THAT HAVE NOT BEEN SIGNED

    For those contracts that have not yet been entered into, consider what amendments need to be made to reflect the current COVID-19 or indeed, whether the contract should be entered into at this time.

    [1] Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337.

    Original article from Build Australia.

  • 6 Apr 2020 9:50 AM | Anonymous

    A national advertising campaign has been launched to promote social distancing and strict hygiene on the nation’s building sites.

    Denita Wawn, CEO of Master Builders Australia said the campaign would run for the next four weeks and was targeted to everyone working in the building and construction sector because everyone has a responsibility to ensure that social distancing and good hygiene are being practiced.

    “Business owners, employers, construction workers, subcontractors, site managers – everyone must be accountable for social distancing and strict hygiene not only on building sites but also off site when on breaks and before and after shifts,” she said.


    “As an essential industry it’s vital to the community and the economy that in this extraordinarily difficult time we can continue building and construction work to provide the livelihoods of 1 in 10 Australians and to support the viability of nearly 400,000 small businesses,” Denita Wawn said.

    “It’s important that the health and wellbeing of everyone in our industry and community remains our top priority which is why the industry is continuing to embed social distancing and strict hygiene practices on site. It’s also why we have joined forces with the CFMEU and the AWU to promote an even stronger safety culture as our industry and our community faces the Covid-19 crisis,” she said.

    “However, we do recognise the substantial cultural change that we are asking everyone in our industry to make. Everyone including workers, subcontractors and management are used to completing building projects as efficiently as possible. Social distancing is slowing work down, but slower work is better than no work and that is why we are asking everyone in our industry to step up and be accountable for doing the right thing to keep each other and the community safe,” Denita Wawn said.

    “There are 1.2 million people and nearly 400,000 small businesses in communities around Australia that go to work every day in our industry which provides the most full time jobs and is made up of the most SMEs than any other sector in the economy. That is why we have launched this campaign,” Denita Wawn said.

    Original article from Build Australia.

  • 6 Apr 2020 9:45 AM | Anonymous

    In preparation for the expected adoption of the National Construction Code (NCC) 2019 Amendment 1 by all States and Territories from 1 July 2020, the Australian Building Codes Board (ABCB) has released a preview of the Amendment.

    NCC 2019 Amendment 1 will include:

    • a new provision in NCC Volume One regarding egress from early childhood centres;
    • an update to the Governing Requirements for all Volumes to require labelling of aluminium composite panels in accordance with SA Technical Specification 5344;
    • clarification of the concession in NCC Volume One that permits the use of timber framing for low-rise Class 2 and 3 buildings;
    • clarification in NCC Volume Two that anti-ponding board requirements only apply to roofs where sarking is installed; and
    • correction of minor errors.

    In addition to the above, the NCC 2019 Amendment 1 preview also contains the following proposed changes that are yet to be confirmed:

    • a new defined term, building complexity, that may be used in the future to identify buildings for which additional oversight is appropriate; and
    • new provision to require that a process be followed to improve the quality of, and documentation for, Performance Solutions.

    NCC 2019 Amendment 1 can be viewed or downloaded from the NCC Suite, or you can download the summary and instructions for all Volumes from the ABCB Resource Library.

    Original article from Build Australia.


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The Formwork Industry Association (FIA) strives to continuously improve competence and safety across the Formwork industry by bringing the industry together for networking, advocacy and knowledge sharing to raise standards and minimise risk.


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