Using the cost of construction work to trigger legislative duties for WHS: The Australian experience

Shooshtarian, S; Lingard, H and Wong, P S P (2020) Using the cost of construction work to trigger legislative duties for WHS: The Australian experience. Built Environment Project and Asset Management, 10(3), pp. 369-387. ISSN 2044-124X

Abstract

Purpose: In an attempt to create national harmonisation of legislation, a set of model Work Health and Safety (WHS) Regulations were developed in Australia. These regulations require principal contractors to undertake specific WHS planning and coordination activities if the construction works to be completed cost AU $250,000 or more. However, there are some doubts about the usefulness of this monetary threshold. This study aimed to investigate how effective this threshold can be in Australia. Design/methodology/approach: To evaluate the performance and operation of this threshold in the Australian construction industry, this study modelled the costs of construction for four construction project scenarios – small classroom, two-storey home renovation with adjacent pool, small commercial warehouse and single-storey house (volume home builder) – under various conditions based on historical data (2011–2017) and in eight Australian jurisdictions. Findings: Among the six study factors (i.e. the types for construction, geographical location, design specification, delivery method, contracting approach and inflation), the research found considerable variation in the operation and performance of the monetary threshold. Originality/value: The research highlights some potential challenges associated with the use of a monetary threshold in the regulation of WHS planning in construction projects. Thus, the results are expected to contribute to addressing these challenges, leading to the development of an appropriate balance to achieve efficient and effective WHS regulation in Australia.

Item Type: Article
Uncontrolled Keywords: construction planning and coordination; cost estimation; threshold; work health and safety regulation
Index terms: health and safety, cost estimating, legislation, jurisdiction, Australia, builder, principal contractor, delivery method, regulation, construction work, classroom, methodology, variation, design specification, renovation, inflation, construction project, construction planning, coordination, duty, construction industry
Subjects: research methods, renovation and retrofit, management, design practice, production management, health safety and environment, contractual condition, Geography, delivery method, political science, industry analysis, construction type, contractual role, practitioner, operations management, financial and cost management, economic analysis, construction planning, legal systems
Topics: Health and Safety, Cost Management, Business Strategy, Engineering Principles, Project Management, Geographical Context, Research Practice, Roles and Professions, Governance, Procurement, Construction Technology, Legal Issues, Design Practice, Organizational Design, Site Management, Contract Administration
Descriptive scope: 4 PCTA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here