A "hazard assessment" simply refers to assessing the work site and identifying existing and

potential hazards before the work begins. Taken at face value, that could mean something
as simple as looking out over the work site, talking about what could go wrong, and then
discussing ways to prevent that. Protecting workers from injury and illness is the right thing
to do. Under the OHS Act and OHS Regulation, employers are responsible for ensuring the
health and safety of all workers at the worksite.

Facilitating a safe and healthy work environment is not just a measure to protect the workers
from injury and illness; safety measures also lower injury/illness costs, reduce absenteeism,
and improve employee morale in the organization. Simply put, safety is good for business.
Employee safety also has other benefits, including

● Improving employee retention

● Helping to remain OSHA compliant
● Creating a safe work environment to improve productivity
● Safeguarding company reputation in the eyes of customers, competitors, and the
general public
● Health and safety policy
● Statement of Responsibilities
● Hazard assessment and control
● Emergency response plan
● Work site inspections
● Procedures when others are working on site
● Orientation and training for workers and supervisors
● Investigating incidents, injuries, and refusals to work
● Worker participation
● Reviewing and revising the program
Purposes of this Act

(a) the promotion and maintenance of the highest

degree of physical, psychological, and social well‑being
of workers,

(b) to prevent work site incidents, injuries, illnesses,

and diseases,

(c) the protection of workers from factors and

conditions adverse to their health and safety, and

(d) to ensure that all workers have

(i) the right to be informed of work site

hazards and the means to eliminate or control those
hazards,

(ii) the right to meaningful participation in health

and safety activities about their work and work site,
including the ability to express health and safety
concerns,

(iii) the right to refuse dangerous work, and

(iv) the ability to work without being subject to

disciplinary action for exercising a right or fulfilling a
duty imposed by this Act, the regulations or the
Agreements between contractors and subcontractors are governed by the law of contracts.
The relationship between contractors and subcontractors is one that usually arises when a
contractor bids on a large construction project. Because it's often impossible for a contractor
to do all the work required for a large project, the contractor will contract with a subcontractor
to supply extra labor and materials.

Contractors bid on construction jobs. Often, these jobs are too large for the contractor to
provide everything necessary for the completion of the project. Thus, a contractor will name
a price during the bidding process that includes what will be paid to a subcontractor. Once
the project is complete, and the contractor is paid, the contractor then pays the
subcontractor.

General contractors obtain contracts by bidding on construction projects. These bids are
considered binding contractual offers. If the project developer accepts the general
contractor's bid, a legal contract is formed, as there's been an offer, acceptance, and
consideration. When general contractors need specialized labor, they contract with
subcontractors to help provide what the project developer requires. General contractors are
often primarily responsible for erecting buildings and/or large structures on the job site.
Subcontractors do not contract directly with project developers; rather, they contract with the
general contractor. The general contractor explains what is expected of the subcontractor in
the contract the parties have with each other. Subcontractors often perform specialized work
the general contractor is incapable of doing, such as landscaping, plumbing, electrical, and
woodworking.
Alternative Dispute Resolution in Construction Contracts

Construction disputes arise due to many reasons during the construction process. Common
causes include claims, payments, delays in construction progress, and errors in documents.
if communication between the parties is not broken entirely then they can consider
Alternative dispute resolutions to find solutions for their disputes. Further ADR processes are
confidential and will help the parties to maintain their privacy.ADR or Alternative Dispute
Resolution prevents expensive litigation processes. Further, these methods are confidential
and provide the parties with alternative ways to settle disputes. The most common methods
of Alternative Dispute Resolution (ADR) in the construction industry include mediation,
arbitration, and adjudication. A specially trained and neutral third party will involve in the
dispute resolution process when the parties to the contract choose any of the ADR methods
to resolve their issue. Further if settled, Alternative Dispute Resolution (ADR) prevents the
need for a court hearing or litigation.

Arbitration is another alternative dispute resolution method that can be used for finding
solutions for construction disputes. However, the contract should include a clause about
arbitration to refer to the arbitration process. A private tribunal will determine the outcome
and it is final and binding for the parties involved. This outcome is known as the Award. In
the arbitration process, the arbitrator acts as a neutral third party.

Arbitration is a private, contractual form of dispute resolution. It provides for the

determination of disputes by a third-party arbitrator or arbitration panel, selected by the
parties to the dispute. Disputes are resolved based on material facts, documents, and
relevant principles of law.

The arbitration process is administered by an appointed arbitrator subject to any relevant

contractual rules and subject to the statutory regulatory framework applied by the domestic
courts. There are only limited rights of appeal and legal costs are usually awarded to the
successful party.

English law does not insist on any formal requirements for an arbitration agreement (for
example it can be verbal), however, if the agreement is not in writing it will be outside the
supervisory regime of the courts established by the Arbitration Act.
Arbitration commences with a notice to concur which provides for agreement on the
appointment of an arbitrator, failing which an arbitrator may be appointed by a nominating
body (which should be named in the contract). Arbitration is now usually combined with
adjudication and mediation in tiered dispute resolution procedures.

Advantages include the fact that it usually takes far less time to reach a final resolution than
if the matter were to go to trial. Furthermore, in the case of arbitration, the parties have far
more flexibility in choosing what rules will be applied to their dispute.

The parties can also have their dispute arbitrated by a person who is an expert in the
relevant field. In an ordinary trial involving complicated and technical issues that are not
understood by many people outside a relevant industry, a great deal of time has to be spent
educating the judge and jury, just so they can make an informed decision. This large time
investment often translates into a great deal of money being spent. Both sides might have to
call expert witnesses, who may charge very large fees for their time. If an arbitrator has a
background in the relevant field, however, far less time needs to be spent on this, and the
parties can get to the actual issues of the case much sooner.

There are some disadvantages, as well. Generally, arbitrators can only resolve disputes that
involve money. They cannot issue orders requiring one party to do something or refrain from
doing something (also known as injunctions). They cannot change the title to the property,
either. Also, there is very limited opportunity for judicial review of an arbitrator's decision.
While a large arbitration service could, if it so chose, have some kind of process for internal
appeals, the decision is usually final and binding, and can only be reviewed by a court in
limited cases. This generally happens when the original arbitration agreement is found to be
invalid. Because both parties must voluntarily agree to arbitration, if the consent of one party
is obtained by fraud or force, it will not be enforced. Also, if the decision of the arbitrator is
patently unfair, it will not be enforced. This is a difficult standard to meet. The fact that the
arbitrator made a decision that the court would not have made is not, by itself, a basis to
overturn the decision. A court might also overturn an arbitrator's decision if it decided on
issues that were not within the scope of the arbitration agreement.

It is important to consider these advantages and disadvantages before agreeing to

arbitration, or any other kind of alternative dispute resolution. Many lease agreements and
employment contracts have mandatory arbitration provisions, and they will usually be
enforced, as long as certain standards are met.
Advantages and Disadvantages of Alternative Dispute Resolution

Advantages of ADR :

1. Lower-cost ADR tends to be lower in cost than litigation.

2. Avoids a jury: alternative dispute resolution methods generally involve the use of one or
more knowledgeable professionals to resolve the dispute;

3. Privacy: alternative dispute resolution is a private process; whereas, litigation and court
records are open to the public. The result can be kept confidential in ADR.

4. ADR is speedy: trials are lengthy; whereas alternative dispute resolution techniques help
to resolve the dispute in a very minimum time; While the adjudicatory method of dispute
resolution takes time in the determination of a case or settlement of a legal dispute,
non-adjudicatory methods, on the other hand, are speedy, saves time, and avoids delays
and uncertainties of adjudicatory trials.

5. Less stress: methods of alternative dispute resolution are often less stressful than
expensive and lengthy litigation. Many people have a high degree of satisfaction with ADR;
This is so as parties have the flexibility to select the procedural rules which will apply to their
dispute and they have the power to control their fate rather than relinquishing the power to
decide their rights to an adjudicator, and they also have the power to select their arbitrator or
mediator.

6. Co-operation: ADR allowed the party to work together with the help of a third party
appointed who is independent and neutral; Alternative Dispute Resolution (ADR) fosters
cooperation as it allows parties to work together with the neutral arbitrator or mediator to
resolve the dispute and come to a mutually acceptable remedy.

7. The parties can often select their arbitrator, mediator, or conciliator to dissolve their
disputes.

Disadvantages of ADR:
1. No guaranteed resolution except for arbitration; 1) There is no guaranteed resolution of
Dispute: In Alternative Dispute Resolution (ADR), you may spend your money and time in
hiring a third party to settle your dispute, however, there is no guaranteed settlement of the
dispute by the third party as either of the parties to the dispute may disagree with his final
resolution, and this will lead to the dispute still having to proceed to the Court for hearing.

2. Discovery limitations: some of the procedures of safeguarding to protect the party is

available in court but this facility is not provided in ADR.
PERFORMANCE BOND

A performance bond is a financial guarantee to one party in a contract against the failure of
the other party to meet its obligations. It is also referred to as a contract bond. A
performance bond is usually provided by a bank or an insurance company to make sure a
contractor completes designated projects. If one party to a contract cannot complete their
obligations, the bond is paid out to the other party to compensate for their damages or costs.
Performance bonds are provided to protect parties from concerns such as contractors being
insolvent before finishing the contract. When this happens, the compensation provided for
the party that issued the performance bond may be able to overcome financial difficulties
and other damages caused by the insolvency of the contractor. A performance bond consists
of three separate entities or parties, including Principal, Obligee, and Surety.

Performance bonds protect the contracting party if their contractor may become insolvent or
otherwise unable to meet the terms of a contract. If the costs of completing the project
overrun their projections, the obligee will not be responsible for the additional expenses. This
reduces the risk for developers or other companies when they engage in large-scale
construction projects.

there are some risks to consider. The surety may attempt to argue that the obligee did not
comply with all the requirements of the bond to deny payment. Or, they may try to get the
obligee to settle on a lesser amount. Moreover, it is up to the obligee to calculate the
financial cost of a failure by the contractor. If the obligee underestimates the cost of
non-performance, they will have to absorb those extra costs on their own.

For example, Party B shall make up any difference in the performance bond within two
business days upon receipt of notice from Party A for the deduction of the performance
bond. If it fails to do so, Party A may deduct an amount equal to such difference from the
business settlement amount due to Party B.
ADVANCE PAYMENT BOND

An advance payment bond involving an independent payment obligation, is to be issued in

letter form, typically by a bank. The bond is primarily intended for use on a construction and
engineering project, although it could be used or adapted for other commercial supply
contracts, including where a customer pays a supplier in advance for a piece of machinery or
equipment. An advanced payment guarantee also is used when a commercial contract is
issued to guarantee that payment gets made to the company that is doing the work. An
advance payment guarantee also makes the promise that the payment will be returned to
the buyer if the seller does not complete their contractual obligations to deliver the goods or
services required.

The advanced payment guarantee provides legal security by offering a unique kind of
protection to the buyer. The advanced payment bonds provide security by guaranteeing that
the contracted company will provide the goods or services that they are contracted to
provide before complete payment is made. If the entity that is hired to provide a good or
service does not provide that service, the buyer has a money-back guarantee on their
investment. These advanced payment guarantees also ensure that all laws and regulations
related to the product or service that the consumer has purchased are followed.
Statutory Insurance — insurance that the insured is required to buy under a country, state, or
federal law.

Statutory Liability cover often falls under the banner of Management Liability Insurance and
exists to protect businesses from legal expenses if they were to breach an act of legislation.
In addition to compensating the insured for the fine, these policies can cover any reasonable
legal and investigative fees that will also be likely to apply. Statutory Liability under ML
Insurance also covers breaches of other types of legislation relating to consumer protection,
employment practices, pollution, the environment, privacy, Chain of Responsibility (Transport
Industry), and electrical safety.

Within the building and construction industry, the most common claims arise from alleged
violations of either workplace health and safety laws or environmental laws.

Coverage typically includes the costs and legal expenses incurred from the official
investigation, with any subsequent fines and penalties also currently covered under most
circumstances. Exceptions include fines and penalties associated with dishonest or
deliberate wrongful breaches, and gross negligence or recklessness.

Workplace injuries are, unfortunately, far too common in the construction industry. Should a
significant injury occur, the legal costs related to defending a formal investigation and
prosecution can be very costly. Without statutory liability insurance coverage, many small to
mid-sized builders would struggle to recover financially from the costs associated with
defending a breach of workplace health and safety legislation.