Document ID: chunk:federal_register_of_legislation:F2016L00394:body:0:p6
Version: federal_register_of_legislation:F2016L00394
Segment Type: other
Provision Reference: 
Character Range: 13276–16158

1.5              What is a 'construction project'?
Regulation 292: A construction project is a project that involves construction work where the cost of the construction work is $250,000 or more.
A construction project covers all the activities involved in the construction work up to the point that the construction project is handed over to the person who commissioned it.  The handover usually takes place at the practical completion of the project when, for example, a house is considered habitable and the buyer or owner takes possession.
Valuing construction work
The cost of construction work can be determined by the contract price for carrying out the work. The kinds of costs that would be included are:
    * project management costs associated with the work
    * the costs of fittings and furnishings, including any refitting or refurbishing associated with
      the work (except where the work involves an enlargement, expansion or intensification
      of a current use of land)
    * any taxes, levies or charges (other than GST) paid or payable in connection with the work
      by or under any law.
The cost of the construction work would not include:
    * the cost of the land on which the development is to be carried out, including the civil engineering, utility and other land development cost involved in a land subdivision.
    * the costs associated with marketing or financing the development (including interest
      on any loans)
    * the costs associated with legal work carried out or to be carried out in connection with
      the development.

Principal contractor
Under the WHS Regulations, each 'construction project' must have a 'principal contractor'.
There can only be one principal contractor for a construction project at any one time.
A principal contractor is a person conducting a business or undertaking (PCBU).
The person conducting a business or undertaking that commissions a construction project is
the principal contractor, unless the person appoints another person conducting a business
or undertaking to be the principal contractor and authorises the person to have management
or control of the workplace and discharge the duties of the principal contractor.
A principal contractor can be a sole trader of a business or undertaking, a company or a partnership. In the case of a company, the company has the duties of the principal contractor rather than the individual managers who are employed by the company. In the case of a partnership, each partner is responsible for the duties of the principal contractor.

1.6              Other terms used in this code
Builder:  This is a person conducting a business or undertaking (PCBU) that commissions the construction work and is authorised to manage, control and coordinate the construction work at the workplace.  For construction projects they are referred to as the 'principal