L5 - commercial and legal issues

what legislative contexts do all construction projects involve?

- access to or rights over land

- powers or authority to proceed

- finance and resources

why are access to or rights over land needed?

- to undertake design surveys

- to obtain soil samples

- to undertake construction

- for use and maintenance

what do construction projects need powers or authorisation for?

- implement designs

- acquire land or rights to use it

- undertake construction work

- operate the completed facility

- deploy the resources needed

- incur the resulting expenditure

- private individual or company

- public body or government agency

- private organisation but public funds

what are the 2 types of ownership?

ownership outright - freehold

ownership for a defined time period - leasehold

what are the main features of ownership?

- may exclude mineral rights

- may be constrained by restrictive covenant

- rights and obligations attached to the land may apply that can affect use of land

what kinds of rights or obligations can affect use of land?

- a mortgage held by third parties against the property

- easements or wayleaves across the land

- rights of way across land or needed access to land

- rights of support to adjacent land or property

- riparian rights associated with a non-tidal watercourse

- air rights that have been separated from the surface rights

- underground rights, oversailing rights

what is the legislative basis for the planning controls all UK land is subjected to?

The Town and Country Planning Act 1990

what is this legislation provided for?

- a system of development control

- a system of development plans to guide development

- a system of planning appeals and inquiries

- an enforcement system against non-approved development

define development?

the carrying out of any building, engineering, mining or other operations in, on and over or under land.

the making of any material change in the use of any building or other land

what types of development do not require planning permission?

- certain building and engineering works (eg agriculture)

- development allowed by the town and country planning order

- changes of use within the same use class within town and country planning order

why are infrastructure projects a special case?

most require authorisation for their implementation

why do most infrastructure projects require authorisation?

- powers are needed for their construction or finance

- compulsory purchase powers may be needed for land

- in some cases getting planning permission from local planning authority may be difficult

what various methods of approval exist?

orders made under relevant authorising legislation (eg Transport and Works Act 1992, Highways Act 1980 Road Orders & Side Road orders)

- development consent orders via the planning act 2008 (for nationally significant infrastructure projects)

- private bills/acts of parliament/acts and hybrid bills

define sustainable development

development that meets the needs of the present without compromising the ability of future generations to meet their own needs

what are the 3 pillars of sustainability?

environment, economic, social

describe the link between local, national, international strategies for sustainability and how they impact outcomes

national/international strategies and agreements impact company strategies and attitudes to sustainability that impact projects that impact sustainability outcomes

what are the mandatory building regs?

- design must comply with building regs

- designed emission rate DER must not exceed target emission rate for notional building of similar type

- solar gains must be limited

- as built performance consistent with DER post commissioning testing

- limited fabric parameters u values-heat transmission

- control of A/C on commercial small office blocks

what does 'Carbon Action by 2050' state?

UK government is committed to reducing carbon emissions to 80% of 1990 levels by 2050

how much of the UK's total carbon emissions does the built environment account for?

45%, 27% from domestic buildings and 18% from non-domestic

what percentage of domestic emissions does the built environment account for?

72% is from space heating and provision of hot water

what percentage of landfill waste does the built environment account for?

32% of landfill waste comes from construction and demolition of buildings

what percentage of products delivered to construction sites are sent directly to landfill without being used?

13%

how do we check that buildings are designed and constructed to legal requirements?

the local authority/approved inspectors will review and approve/dismiss applications. Local authorities and inspectors are required to consult other bodies before issuing notices and certificates

what do the objectives of the regulations include?

to secure the health, safety, welfare and convenience of users

- to conserve fuel and power

- to reduce waste, undue consumption, contamination of water

- to protect the environment and promote sustainable development

when and where must notices and plans must be served for an approved inspector control?

to the local authority more than 2 days before start

for local authority control, when must plans be deposited?

5 weeks before start and notices, authority may pass, reject or request amendments

what is the CDM?

construction design and management regulations

what objectives does the CDM 2015 charge clients, designers and contractors with?

- plan the work so risks involved are managed from start to finish

- employ qualified personnel for various tasks

- cooperate and coordinate work with others

- have the right information about risks

- communicate this effectively to those who need to know

- consult and engage with workers about risks and how they are being managed

the CDM 2015 requires the appointment of who for a project involving multiple contractors?

a principal designer and principal contractor

when must the health and safety executive be notified?

1) if construction work will or is expected to last more than 30 days and involve more than 20 persons working simultaneously at any point

or

2) the construction works is expected to involve more than 500 person days

what are the 5 main pricing/payment methods?

lump sum, remeasurement, activity schedule, cost-reimburse, target price

what is the lump-sum method?

contractor is paid a fixed amount of money for completing parts of a whole project, contractor bears risk of inaccurate estimation

when is the lump sum method usually used?

with traditional or D&B systems

state the 2 variations of lump sum

fixed price, firm price

what is the fixed price variation of lump sum?

there is a fixed tendered price for the whole of the works (no adjustment for inflation, currency exchange etc)

what is the firm price variation of lump sum?

firm price tendered (there is an adjustment for inflation, currency exchange etc)

what are the payment mechanisms for lump sum?

- milestone payments by completed phase

- planned or agreed payment schedules

what are the advantages of the lump sum method?

- high degree of price certainty

- contract administration easier provided payment and variation mechanisms are agreed

- contractor incentive to drive cost down to improve profits

what are the disadvantages of the lump sum method?

- not suited to contracts that will vary

- cost control may be difficult if milestones are not in place

- poor pricing may lead to claims

- claims management and negotiations may be difficult since no basis for agreeing prices

describe the remeasurement method for pricing/paying?

work carried out is measured at agreed stages and paid for

describe the activity schedule method for pricing/paying?

price based on key tasks in project eg foundations

describe the cost-reimburse method for pricing/paying?

common for civils work, contractor paid cost incurred plus fees

describe the target price method for pricing/paying?

predetermined contract price, pain/gain shared between client and contractor

what does general health and safety involve?

risk management, pre contract health and safety plan, health and safety files

who are the principal designers?

designers appointed by the client in projects involving more than one contractor. they can be an organisation or an individual with sufficient knowledge, experience and ability to carry out the role

what is the main responsibility of the principal designer?

to plan, manage, monitor and coordinate health and safety in the pre-construction phase of a project

what is involved in coordinating/managing health and safety in the pre construction phase of a project?

- identifying, eliminating or controlling foreseeable risks

- ensuring designers carry out their duties

- liaise with principal contractor to help in planning and coordinating of construction phase

who are the principal contractors?

contractors appointed by the client to coordinate the construction phase of a project where it involves more than one contractor

what is the main responsibility of the principal contractor?

to plan, manage, monitor and coordinate health and safety in construction phase of a project

what does the responsibility of the principal contractor involve?

liaising with client and principal designer preparing with construction phase plan

- make sure suitable site inductions are provided

- welfare facilities are provided

- workers are consulted and engaged in securing health and safety

- reasonable steps are taken to prevent unauthorised access

who are contractors?

those who carry out the actual construction work, can be an individual or a company

what is the main role of a contractor?

plan, manage and monitor construction work under their control so it is carried out without risks to health and safety

what is the role of a contractor in projects involving more than one contractor?

coordinate their activities with others in the project team

what is the role of a contractor in projects for single contractor projects?

prepare a construction phase plan (PDF)

who are workers?

those working for or under the control of contractors on a construction site

what must workers do?

- be consulted about matters which affect their health, safety and welfare

- take care of their own health and safety

- report anything they see which is likely to endanger either their own or others health and safety

- cooperate with their employer, fellow workers, contractors or other dutyholders

what was the Building Safety Regulator set up to do?

regulate higher-risk buildings, raise safety standards of all buildings

what are the qualifying factors for a high-rise residential building?

- 7 storeys or at least 18 metres high

- 2 residential buildings

who is an accountable person?

- freeholder or estate owner

- landlord

- management company

- resident management company

- right to manage company

- commonhold association

accountable persons are responsible for what?

assessing and managing the risks posed to people in and about the building from structural failure or the spread of fire in the parts of the building they are responsible for

how must accountable persons stay responsible?

- report safety occurrences to BSR

- report them on mandatory occurrence reporting system operated by PAP

- carry out duties relating to resident engagement strategy

- keep certain information about building (golden thread)

- provide building information to relevant individuals and organisations