5 office fit-out firms to pay £7 million fine for breaking competition law

5 office fit-out firms to pay £7 million fine for breaking competition law

Following a Competition and Markets Authority (CMA) investigation, each company has admitted to breaking competition law at least once during the period of 2006-2017, in some cases on multiple occasions.

The firms, based in London and the Home Counties, provide services such as fit-out, design and refurbishment of commercial and non-residential premises. Office fit-out is part of the construction sector.

Each company has admitted to participating in “cover bidding” in competitive tenders, colluding on the prices they would bid for contracts. Typically, cover bidding involves companies agreeing with each other to place bids that are deliberately intended to lose the contract, thereby reducing the intensity of competition. This type of illegal behaviour can lead to customers paying an artificially inflated price or receiving poorer quality services.

These cover bids affected 14 contracts with a variety of customers, ranging from a City law firm to a further education college.

The 5 companies have formally admitted that their actions constituted a breach of competition law. They have therefore agreed to pay the following fines that reflect a number of factors including the companies’ size and financial position, and their role in the cartel behaviour:

  • Fourfront has agreed to pay £4,143,304
  • Loop has agreed to pay £1,090,816
  • Coriolis has agreed to pay £7,735
  • ThirdWay has agreed to pay £1,780,703
  • Oakley has agreed to pay £58,558

Andrea Coscelli, the CMA’s Chief Executive, said:

The CMA is concerned it is seeing a lot of evidence of anti-competitive conduct in the construction industry, and we have already taken a number of cases in this sector. Today’s fines reinforce the message that the CMA will not tolerate competition law being broken.

As shown by the total of £7 million in fines agreed today, we will not turn a blind eye to illegal behaviour and we will impose penalties where we find laws have been broken. This can include seeking disqualification of company directors.

Any business found to have infringed the Competition Act 1998 can be fined up to 10% of its annual worldwide group turnover, and directors of the companies concerned can be banned from holding directorships for up to 15 years.

The CMA runs a Leniency Programme to encourage businesses and individuals to come forward with information about their involvement in a cartel. Businesses which come forward and co-operate with the CMA may be granted immunity from penalties or a significant reduction. In this case, JLL brought information about the conduct to the CMA’s attention and, in accordance with the CMA’s Leniency Programme, will therefore not receive a fine. Under the Leniency Programme, Loop will receive a 25% discount to its fine for coming forward with information about its participation in the cartel behaviour, and co-operating with the CMA.

Further information can be found on the design, construction and fit-out services case page.

Low but positive growth for UK construction amid Brexit uncertainty

Low but positive growth for UK construction amid Brexit uncertainty

The latest forecast from CITB expects positive growth for the sector despite the uncertainty of Brexit.

The annual Construction Skills Network (CSN) report – a five-year forecast into the industry’s skills needs – anticipates construction growth of 1.3% across the UK, down a third of a percent on the previous year. The forecast is based on the scenario that the UK agrees an exit deal with the EU, rather than a ‘No Deal’ situation.

The biggest increase is expected in public housing, which is pulling ahead as infrastructure slows. Financial support from Government at both local and national levels is encouraging a 3.2% growth rate in public housing, up half a percent since last year’s forecast.

Infrastructure is set to grow by 1.9%, down from 3.1% predicted in last year’s forecast. The sector has been heavily affected by Brexit uncertainty and by investors stalling construction of the Welsh nuclear power plant Wylfa in January.

Commercial construction is significantly declining due to investors taking a cautious stance in the face of Brexit. The forecast expects the sector to drop sharply this year then level out by 2023, with zero growth anticipated overall.

However the housing repair and maintenance sector appears to be benefitting from a quieter property market as home owners halt plans to sell up and instead focus on improving their current properties. By 2023, the sector is expected to have grown by 1.7%.

Despite the wider economic uncertainty, more construction workers will be needed over the next five years. An approximate 168,500 construction jobs are to be created in the UK over the next five years, 10,000 more than in last year’s forecast. Construction employment is expected to reach 2.79 million in 2023, just 2% lower than its peak in 2008.

Steve Radley, Policy Director at CITB, says:

‘This forecast aptly reflects the uncertainty, particularly associated with Brexit that we’re seeing across the wider economy. Currently, concerns around Brexit are weighing on clients and investors, creating a knock-on effect on contractors and their ability to plan ahead.

However, assuming that a deal is agreed, we expect low but positive growth for construction.  Even as infrastructure slows, sectors like public housing and R&M are strengthening. This will see the number of construction jobs increase over the next five years, creating growing opportunities for careers in construction and increasing the importance of tackling the skills pressures we face.”

CPR update in Brexit no-deal scenario

Important update if you manufacture or import products covered by the Construction Products Regulation (CPR) if there is no Brexit deal

This guidance from MHCLG provides practical information on the legal requirements that would be required in a no deal scenario.

This update includes a Q&A section which was updated today.

Download the document here.

FIS responds to latest Government consultation on offsite construction

FIS responded in February to the latest Infrastructure and Projects Authority (IPA) consultation on the role of offsite construction in continuously improving the delivery of major government projects. This consultation builds on both the Farmer Review and The House of Lords’ Science and Technology Committee’s July 2018 inquiry into Offsite Manufacture for Construction looking at innovative construction practices that deliver better outcomes in terms of productivity, predictability and attacking the skills crisis.

In our response FIS reminds the IPA that offsite is not just about structures, but through the use of pre-manufactured systems (e.g. bathroom pods and other interior systems) has potential to support productivity in the interiors sector.  FIS calls for recognition that earlier engagement with the supply chain to ensure buildability is critical and rather than value engineering individual projects, looking at multi-project partnerships with a consistent supply chain approach would help to create the necessary economies of scale to drive investment in off-site opportunities.

This is becoming an increasingly important emerging subject for FIS to focus.  We are interested to hear from members case studies, examples of best practice or problems encountered as they start to encounter and develop offsite solutions.  Please send examples, comments and thoughts through to joecilia@thefis.org

Scotland issues Building Standards consultation – Changing Places Toilets

Scotland issues Building Standards consultation – Changing Places Toilets

Scotland has issued a Building Standards consultation – Changing Places Toilets. This deals with the introduction of these changing facilities in defined types of larger new buildings, conversions or extensions. By ‘defined’, the types of construction being considered are:

  • Shopping centres/malls with a gross floor area of 30,000m2 or more
  • Single retail premises with a gross floor area of 10,000m2 or more
  • Places of entertainment or assembly with a capacity of 2,000 persons or more
  • Hospitals
  • Secondary schools providing community facilities
  • Leisure centres or similar buildings containing swimming pools

Current Scottish Building Standards do not require the provision of Changing Places Toilets although section 3.12 does include a basic specification for designers to follow if a client elects to provide such facilities. The consultation is aimed at going further than the provisions given in BS 8300-1 and -2:2018 Design of an accessible and inclusive built environment – Buildings, and – External environment.

A copy of the consultation documents can be viewed here.

FIS will be responding to this questionnaire so members are invited to send their comments to info@thefis.org by 30 April 2019 for inclusion in our response.

Brexit: Contractual Terms

Concerns have been raised by a number of firms in construction sector about the potential for delays caused by a no deal Brexit leading to the triggering of penalty clauses within construction contracts, and the impact that this could have on firms within the supply chain, in particular SMEs.   The position of the Construction Leadership Council is that invoking these clauses should be a last resort, and that clients and firms in the supply chain should adopt an open and collaborative approach to identifying and planning to mitigate these risks before they materialise.  We would encourage early discussions between clients and firms, and for all those involved in the supply chain to both demonstrate flexibility and seek to ensure that risks are managed by those organisations best placed to do this.

In the short term, firms should take steps to:

  • understand their obligations and liabilities in relation to delays included within the terms and conditions of contracts they are party to or considering signing;
  • identify the key risks – whether to their workforce, or ability to secure sufficient products or materials to complete the project or work package – and ensure that planning to mitigate these is underway;
  • identify whether there are contract terms and conditions linked to the performance of other firms in the supply chain or the delivery of products or materials by suppliers;
  • review insurance policies and the cover these provide, and if necessary, notify your insurer of anticipated delays or potential claims;
  • identify whether there specific Brexit-related project plans or terms and conditions in relation to the project that are not included in your contract; and
  • consider including clauses relating to Brexit and potential delays within contracts that are under negotiation.

This is a complex area, due to the wide range of contractual practices within both the public and private sectors.

More detailed guidance has been prepared by BuildUK for our community here.

Further guidance available in the FIS Brexit Checklist.

Data Protection in the event of a No-Deal Brexit

Firms need to act to understand where, how and to or with which organisations and countries they send, receive or exchange personal data. They also need to identify whether they have put in place either:

  • Standard Contractual Clauses – standard sets of contractual terms and conditions which the sender and the receiver of the personal data both sign up to. They include contractual obligations which help to protect personal data when it leaves the EEA and the protection of the GDPR; or
  • Binding Corporate Rules – an internal code of conduct operating within a multinational group, which applies to restricted transfers of personal data from the group’s EEA entities to non-EEA group entities. This can be a corporate group or a group of undertakings and enterprises engaged in a joint economic activity. These rules must be approved by an EEA supervisory authority in the country where one of the entities is based.

The Information Commissioner’s Office (ICO) has also provided additional useful information and guidance:

  • ICO advice – this provides an overview of the rules, guidance on what the key issues are and what action firms should consider taking. It also provides links to other sources of information and guidance, including to a list of Frequently Asked Questions.
  • ICO Leaving the EU Six Steps – This sets out the key actions required relating to data transfers to and from the UK, in relation to European operations, internal policies and documentation, and organisational awareness (identifying which key individuals who need to understand and apply the new rules.
  • ICO tool for working out if SCC will work for you – this guidance is focused on SMEs, and outlines how SCCs can work, and the circumstances in which these can be used, as well as identifying possible alternative approaches.

Product Regulation: Trading Timber Products

In the event of no deal, firms will need to follow different processes for trading timber and timber products. The UK will have its own law for trading timber, which will mirror existing EU rules. Full guidance published by the Department for the Environment, Food and Rural Affairs can be accessed here.

Importing from the EU/EEA

From 29 March, firms will need to show that imports from the EU and EEA have been legally harvested; which is already required when timber is imported from non-EU and EEA countries. This will require firms to:

  • gather information on the timber – its species, quantity, supplier, country of harvest and how it complies with relevant laws;
  • assess the risk of timber being illegal by applying the legal criteria; and
  • mitigate any identified risk through obtaining more information or taking action to confirm that the timber is legal.

If the timber has an import permit under the Convention on the International Trade in Endangered Species (CITES), then the UK will recognise this has been legally harvested.

Exporting to the EU/EEA

If you’re exporting timber to the EU or EEA, you may need to supply documentation about the source and legality of your timber. This is so EU and EEA-based customers can meet the EU Timber Regulation (EUTR) due diligence rules. Due diligence systems will vary business by business.

You will not need to take any additional action at the border because of Brexit.

Monitoring Organisations

The UK will still recognise monitoring organisations based in the UK. These are independent bodies which carry out due diligence on timber. They’ll still support UK timber standards. The UK will not automatically recognise EU or EEA monitoring organisations if there’s no deal. The EU has indicated it will no longer recognise monitoring organisations based in the UK if there’s no deal.

Looming deadline to transfer UK Conformity Assessment Certificates before Brexit

Looming deadline to transfer UK Conformity Assessment Certificates before Brexit

Deadline for Moving Certificates to an EU-27 Notified Body in a No Deal Brexit Scenario

On 29 March 2019, UK Notified Bodies will no longer be recognised by the remaining EU-27 Member States. As such, UK bodies will not be in a position to perform conformity assessment tasks under the CPR. If UK manufacturers wish to continue placing product on the EU-27 market they must either:

  • Apply for a new certificate issued by an EU-27 Notified Body, or
  • Arrange to have their UK conformity assessment certificates transferred to an EU-27 Notified Body which would then take over the responsibility for those certificates.

EITHER OPTION – THE MOVE MUST BE COMPLETED BEFORE 29 MARCH 2019.

IF THE MOVE IS NOT MADE BY THIS DATE THEN THE PRODUCT WILL NO LONGER BE ALLOWED ON THE MARKET PLACE OF THE EU-27 MEMBER STATES AND A NEW CONFORMITY ASSESSMENT WILL BE REQUIRED.

FIS members receive 10% discount off Construction Contractual Handbook

FIS members receive 10% discount off Construction Contractual Handbook

The must have Construction Contractual Handbook for everyone involved in Construction – 10% discount for FIS members.

For everyone involved in construction, navigating the contractual landscape can be time consuming and difficult. Essential information to help anyone involved in construction contract matters can now be found in the Construction Contractual Handbook. This Handbook is a must have whether you are an employer, developer, project manager, architect, engineer (structural, civil, M&E and others), surveyor (all types), facilities manager, main contractor, subcontractor (all types including specialists), barrister, solicitor, claims consultant, broker, insurer or anyone else involved in construction.  It guides parties to make sound judgements, avoid disputes, and run projects on a safer basis. It is also useful for those studying for construction related education qualifications.

Simon Bingham, Chairman of Caunton Engineering Ltd and chairman of British Constructional Steelwork Association’s (BCSA’s) Commercial and Contracts Committee said: ‘As a specialist subcontractor, Caunton Engineering Ltd needs to be aware of unilateral and difficult to spot changes to contracts, and make sure that we remain vigilant throughout the duration of the contract.  The Construction Contractual Handbook will be an extremely useful tool for our commercial team.’

The Construction Contractual Handbook is an essential tool which sets out the law and contracts in a compact, easy to follow and accessible way.

The Handbook:

  • Includes a reminder about the formation of a contract.
  • Contains a chapter explaining some of the most common onerous clauses or changes that subcontractors, main contractors, architects, surveyors and employers might come across.
  • Addresses the need to maintain vigilance throughout the duration of the contract, ensuring certificates are issued at the right time, variations and any disputes are properly managed and claims procedures are followed.
  • Advises on which contracts to use and includes guidance on the JCT, NEC, DOMs, CECA and the Infrastructure Conditions of Contract.
  • Includes chapters on Insurance, Insolvency, Bonds and Guarantees, Termination and Competition Law.
  • Includes chapters on Scottish and Irish law.
  • Contains useful checklists as a reminder.

The Construction Contractual Handbook is now available for purchase from the Construction Industry Publications (CIP) Bookshop and is priced at £90. https://www.cip-books.com/product/construction-contractual-handbook-5th-edition .  To claim your 10% FIS discount use the promotional code FIS when checking out.

CIP offer FIS members 10% discount off a range of their publications from Accident Books to specialised legal contracts using the discount code FIS.  Click here for details https://www.cip-books.com/category/fis-range

 

£25K skills funding available now

£25K skills funding available now

Are you planning skills training or a professional development courses in the next six weeks? If so we have funding available until 31 March 2019, offering FIS contractor members up to £2.5k in grant funding.

All short duration courses that are construction skills related e.g. Pasma, traffic banksman, commercial awareness for construction, and so on..

Doesn’t include office 365 training, first aid that you typically find across all other industries.

Must be CITB levy payers & FIS members.

Email marieflinter@thefis.org or call Marie Flinter at the FIS office on 0121 707 0077 for details. This will be offered on a first come, first served basis, so act now to avoid missing out.

EU Exit and Trade Update from BEIS

EU Exit and Trade Update from BEIS

This week’s EU Exit and Trade update from the BEIS Infrastructure and Materials team covers no-deal immigration arrangements for EEA nationals; simplified import customs procedures; the launch of the UK Mark to replace CE marking; an update on road freight and a reminder on data protection.

UK’s immigration arrangement for EEA nationals in a no-deal situation
On 28 January, the Home Secretary announced the plans for no-deal post exit migration and movement arrangements, including ‘European Temporary Leave to Remain’.  This will apply to people arriving in the UK after 29 March in a no-deal scenario, not to those already here at that date.  For EEA nationals already in the UK at that point, please refer to guidance on the Settlement Scheme.   For proposals for the Immigration System post-2021, please look here.

A summary of the key facts:

  • EEA citizens will be able to enter and leave the UK as they do now to visit, study and work (staying up to 3 months);
  • the initial 3 months’ leave to enter for EEA citizens will be free of charge but applications for European Temporary Leave to Remain will be paid for. Fees will be set out at a later date;
  • EEA citizens arriving in the UK who wish to stay longer than 3 months can apply for European Temporary Leave to Remain- they will be subject to identity, criminality and security checks before being granted permission to stay for three years;
  • non-EEA family members who wish to accompany an EEA citizen under these arrangements will need to apply in advance for a family permit;
  • Irish citizens will not need to apply for European Temporary Leave to Remain and will continue to have the right to enter and live in the UK under the Common Travel Area;
  • European Temporary Leave to Remain does not give rights forthe EU Settlement Scheme mentioned above.

Guidance is available here and in the accompanying factsheet.

Simplified import customs procedures for no-deal
HMRC has announced that businesses will be able to use simplified customs declarations and postpone payment of duties under a Transitional Simplified Procedures (TSP) scheme if there is a no-deal Brexit (but there will still be additional information needed for controlled goods).  The measures will apply to most businesses importing from the EU at roll-on-roll-off-ports.  The measures would come into place from 29 March and be reviewed after 3 to 6 months.  Businesses will be given 12 months’ notice if they are to be withdrawn.  These transitional simplified procedures reduce the amount of information you need to give up front in an import declaration when the goods are crossing the border and also by deferring the payment of duty.

There are four key actions for traders:

  1. Register for Economic Operator Registration and Identification (EORI) number if you haven’t done so already at www.gov.uk/hmrc/get-eori.
  2. Check the guidance to see if you qualify and check which ports TSP applies to: www.gov.uk/hmrc/eu-simple-importing
  3. If it will work for you, sign up for TSP online.
  4. If tariffs apply to the goods that you import and you want to use TSP you will need to apply to defer any duties payable (HMRC will provide further details on this very soon) and have a financial guarantee by 30 June 2019 for any duties deferred

If you’re exporting, register for the National Export System at https://www.gov.uk/guidance/export-declarations-and-the-national-export-system-export-procedures

Non-VAT registered businesses should also go to www.gov.uk/hmrc/trade-with-the-eu for changes that affect them.

Prepare to use the UK Mark
On 2 February the Government published the design for the UK marking that will need to be affixed to certain products sold in the UK in the event we leave the EU without a deal. This would replace the CE marking. The CE marking is placed on specific products to show that they are compliant with the relevant EU regulatory requirements. In most cases the CE marking can be applied to products tested by the manufacturer. For some products, there is a legal requirement for the product to be assessed by a third-party assessment body (usually a ‘Notified Body’) to confirm they meet relevant the requirements. In a ‘no deal’ scenario, the EU will stop recognising the competency of UK-based Notified Bodies to assess products for the EU market.

Maintaining Access to the UK Market: The Government intends to reclassify UK Notified Bodies as UK Approved Bodies. These bodies will be eligible to assess products against relevant UK requirements and issue the new UK marking to compliant products to be sold on the domestic market. In most cases, manufacturers would not need to use the UK marking immediately in the event of the UK exiting the EU without a deal. Instead, manufacturers will be able, for a period of time, to continue to use the CE marking when placing their products on the UK market if their product meets the relevant EU requirements. This would include products that have had any necessary third-party assessment carried out by an EU-recognised body. The Government would consult businesses before taking a decision on when this period would end. However, for products subject to conformity assessment by a UK Approved Body, manufacturers will be required to affix a ‘UK Mark’ to the product to demonstrate compliance with requirement. To check whether you will need to use the UKCA marking please read the guidance on trading goods regulated under the ‘New Approach’ if there’s no Brexit deal.

Maintaining Access to the EU Market: Products being exported to the EU  that currently require the CE marking will continue to require the CE marking to demonstrate compliance with the relevant EU requirements. UK manufacturers placing products on the EU market that require the CE marking will need to get their products assessed and marked by an EU recognised conformity assessment body or could arrange for assessments to be transferred to an EU recognised body before the UK leaves the EU.

Guidance on the use of the UK marking can be found here.

Road freight update
The Government will continue to license UK hauliers to the same high safety, environmental and operating standards as at present, and will require foreign hauliers operating in this country to do the same. Legislation about to be put forward by the Department for Transport will provide for continued access to the UK market for hauliers from the 27 EU member states in a no deal scenario.  Over 80% of haulage between the UK and continental Europe is undertaken by EU hauliers.

On its side, the European Commission has proposed legislation that would allow UK hauliers basic rights to conduct operations to, from and through the EU for a limited period of nine months after exit, if there is no deal.  The Commission’s proposal will need to be agreed by the European Council and European Parliament, and is being considered by both institutions urgently.  This proposal is predicated on the UK granting equivalent access for EU hauliers here and the legislation mentioned above provides for that access.  Depending on the outcome of these discussions, we will review the UK’s offer to EU hauliers.

The Government does not expect and has never intended to rely solely onEuropean Conference of Ministers of Transport (ECMT) permits for UK hauliers after we leave the EU.

On 25 January, The UK signed an agreement with Switzerland on the international carriage of passengers and goods by road. The agreement will ensure UK hauliers and commercial bus drivers can continue to drive to, from and through, Switzerland after the UK leaves the EU, as they do now. Further information can be found here.

Data protection
In the event that the UK leaves the EU on 29 March 2019 without a deal, UK businesses will need to ensure they continue to be compliant with data protection law.  For UK businesses that operate internationally or exchange personal data with partners in other countries there may be changes that need to be made ahead of the UK leaving the EU to ensure minimal risk of disruption.  For those that would be affected, early action is advised as changes may take some time to implement.

How personal data currently moves across the border

  • Personal data is protected by the GDPR. This gives individuals rights over their data: to know who has it, to correct it, to delete it, to move it. Etc.
  • The GDPR says that data can only be moved across borders if equivalent protections exist in the country where the data is going.
  • At present personal data can cross borders as follows:
    • Where it remains in the EU (because all EU countries must apply GDPR)
    • Plus EEA states: Norway, Iceland, Lichtenstein, and other UK territories like Gibraltar.
    • Countries where the EU Commission has determined there are adequate protections: Andorra, Argentina, Canada (commercial organisations), Faroe Islands, Guernsey, Israel, Isle of Man, Jersey, New Zealand, Switzerland, Uruguay and the United States of America (limited to the Privacy Shield framework) as providing adequate protection.
  • If none of the above apply, such as when we send personal data to India, or Australia, then the data can only be sent where there are “standard contractual clauses” (SCC) or “binding corporate rules” (BCR).
  • SCC and BCR essentially extend the GDPR rights to data moved to a third country jurisdiction.
  • To note: SCC only covers certain data transfer relationships and BCR only cover data transfer within a single company.

 

What do businesses need to do?

They need to understand their data flows.  Do they have affected cross-border personal data flows?  Have they put in place Standard Contractual Clauses or Binding Corporate Rules?

The government published advice for business in September 2018:

https://www.gov.uk/government/publications/data-protection-if-theres-no-brexit-deal

 

The ICO (information Commissioner’s Office) provides some useful information:

ICO advice – good starter document with some links to more info

ICO Leaving the EU Six Steps – A breakdown of steps to take to prepare for EU exit

ICO tool for working out if SCC will work for you

 

 

EU Exit and Trade Update from BEIS

Brexit Update – Priority for FIS members settled status for EU27 workers and clarification of contract delay implications

We have seen further flurries of activity from the Civil Service this week as the likelihood of a No Deal increases.  In terms of your planning, we are keeping the Brexit checklist up to date and recommend a focus on helping your team to understand the implication of Settled Status (applicable to those from the EU27 who arrived before March 29th).  We also had an update this week on the European Temporary Leave to Remain, which will apply to those arriving after 29 March.  This has been absorbed now into the checklist.  You may already have seen the interesting report from Ranstaad that analyses the current mood of EU27 workers, the stat that jumps out is 1 in 5 are undecided as to whether they’ll stay or leave 81% wouldn’t consider leaving until after 29 March.  More here.

The impact of delay clauses was also discussed at a BuildUK meeting this week and remains a concern.  We continue to put pressure on Government to ensure that these are not applied through any public sector works and on the wider client audience to be reasonable about how they are imposed, but some legal wrangling may still apply.  Remember FIS has a legal helpline that you can use.   Do feel free to fire in any questions, concerns or comments to us and we will seek to build the answers into our ongoing work.

You can access the FIS Checklist here.

FIS members invited to test UK REACH IT system

FIS members invited to test UK REACH IT system

After Brexit on 29 March 2019, UK businesses that manufacture or import chemicals from the EU will have to register those chemicals to the new UK regulatory system – UK REACH – using its associated UK REACH IT system. In support of this new registration system DEFRA has been inviting individual businesses to participate in their Model Office testing programme for the new UK REACH IT system and now wish to extend this an invitation to the FIS membership.

Full details from DEFRA are below including the dates for the testing programme, together with important relevant information concerning the version of IUCLID to be used. If you are wishing to participate please email jessica.durkota@environment-agency.gov.uk or for further information contact REACH-IT@defra.gov.uk


UK REACH IT testing – Invitation to participate

The Model Office will be hosted at Alpha Tower, Birmingham, B1 1TT. We ask that you attend for one day of testing (09:30 arrival for a 10:00 start with wrap-up to complete by 16:00). Although we cannot provide remuneration for travel or subsistence, we will be providing refreshments and lunch on the day. The testing can only be conducted at the Model Office site as this will enable the concurrent testing of all processes from a system user and administrator perspective.

So the testing is as realistic as possible, we ask participants to bring:
• Your own laptops for access to your company email and a web browser (secure internet access is available by Wi-Fi)
• Copies of your REACH information. Any REACH dossiers for the Model Office are required in IUCLID v6.3, please inform us if your dossiers are in an older version of IUCLID as we can provide support in converting these to a more recent version.
The testing will be run on the dates below, please choose a date that is most suitable and let us know by responding to the address below:

Monday 25 February
Tuesday 26 February
Wednesday 27 February
Thursday 28 February
Friday 1 March
Monday 4 March
Tuesday 5 March
Wednesday 6 March
Thursday 7 March
Friday 8 March

We will be providing participants with a full welcome pack and joining instructions prior to the day. If you have any further queries please contact REACH-IT@defra.gov.uk

Cashflow consequences of VAT reverse charge

Cashflow consequences of VAT reverse charge

Members need to prepare themselves for the upcoming reverse charge VAT. This will see VAT being paid between construction firms ‘reversed charged’ which will have consequences for your cashflow and accounting systems.

The first public guidance has now been released and is available at https://www.gov.uk/government/publications/vat-reverse-charge-for-building-and-construction-services-guidance-note/guidance-note We urge all members to download a copy and take the time to read it. There will be lots more literature including example letters for subcontractors and example invoices as we approach the start date. Companies must not start reverse charging before the start date.

Reverse charge VAT will involve some decision making before an invoice is sent to a customer based on the nature of the work done and accounts departments will need to know whether the customer is VAT registered and whether the customer is CIS registered.

JTC has created a flow chart, which is similar to what members will use daily after October 2019.

Think about collecting your customers VAT registration numbers and CIS UTR now for projects that will run over into autumn 2019. There will be far more guidance and help as we get closer to the start – just think and be aware that change is happening.

Making Tax Digital: index and timeline

Making Tax Digital: index and timeline

Confused by HMRC’s Making Tax Digital (MTD)?

Liz Bridge at the Joint Taxation Committee has prepared an index and timeline to help you understand what Making Tax Digital really means, how it will affect you, quarterly reporting and any exemption rules. Find out more here in the latest edition of JTC Newsline.

EU Exit and Trade Update from BEIS

CLC Brexit Contingency Planning Conference – update on the actions

Following the construction industry Brexit Contingency Planning Conference, the agreed actions covered were;

  • The construction workforce, including skills and migration
  • The import and export of goods
  • The future regulatory regime and demonstrating compliance with this
  • Communicating with Government regarding the key concerns of the industry about a no deal Brexit.
  • In addition, it was also identified that some firms may need to take action to comply with data protection rules, so guidance is also covered.

Below is an update on the actions agreed, and further information on the timeline for taking this forward.

Workforce
The Skills Working Group of the CLC, Chaired by Mark Reynolds, has established a “virtual” Brexit Contingency Group to focus on short, medium- and long-term skills actions. The Group has already met and is in the process of agreeing a report that will include recommendations and actions. This will outline what industry should be doing, and what our asks are of the Government. The Group will meet again next week to refine the recommendations and actions, and will issue an interim draft on the 15 February, with the aim of concluding this work and issuing a final report by Friday 22 February.

Import and Export of Goods
Significant progress has been made on arrangements for import and export of goods since the conference which will reduce the potential impacts of a no-deal scenario, for those firms that have taken action and followed the guidance published by HMRC.

To prepare, both importers and exporters should register for a Economic Operator Registration and Identification (EORI) number at www.gov.uk/hmrc/get-eori.

Importers
HMRC announced on the 4 February that in the event of the UK leaving the EU without a withdrawal agreement, Transitional Simplified Procedures (TSP) will be applied to imports. These will apply for at least 15 months (they will be reviewed after 3 and 6 months and there will be a 12 month notice period prior to their removal). Once registered, firms will be able to transport goods into the UK without having to make a full customs declaration at the border, and will be able to postpone paying their import duties.

Importers will be able to register for TSP online from 7 February at www.gov.uk/hmrc/eu-simple-importing. An EORI number is required to do this. For further guidance, including which ports TSP applies to, please go to www.gov.uk/hmrc/eu-simple-importing.

Firms wishing to receive regular updates on developments can register for HMRC’s email update service at www.gov.uk/hmrc/business-support select ‘business help and education emails’, then ‘EU Exit’. Non-VAT registered businesses should also go to www.gov.uk/hmrc/trade-with-the-eu for changes that affect them.

However, there are some controlled goods (e.g. alcohol, tobacco or explosives) regarding which further information will be required before importing, and where licences and other import procedures may apply. Details of these can be accessed through the following link (https://www.gov.uk/government/publications/uk-trade-tariff-import-prohibitions-and-restrictions/uk-trade-tariff-import-prohibitions-and-restrictions).

Exporters
After registering for their EORI number, exporters should register for the register for the National Export System at www.gov.uk/guidance/export-declarations-andthe-national-export-system-export-procedures.

Firms should also consider appointing a customs agent to make declarations on their behalf, or if this is not the right solution for the firm, but it is a regular importer and exporter, ensure someone within the firm is trained to make customs declarations, and buy any specialist software required that can link with HMRC’s customs systems.

Tariffs
Firms should also review what tariffs would apply to products in the event of the UK leaving the EU without a withdrawal agreement. Guidance on what tariffs will apply, and information about tariffs on individual products can be found at https://www.gov.uk/government/publications/classifying-your-goods-in-the-uk-trade-tariff-if-theres-no-brexit-deal/classifying-your-goods-in-the-uk-trade-tariff-if-theres-a-no-brexit-deal.

Construction Products Regulations
The Construction Products Association (CPA) has worked with other stakeholders to produce technical notes on the Construction Products Regulation and Registration, Evaluation, Authorisation an Restriction of Chemicals Regulation (REACH) in the event of a no deal Brexit. These are attached/can be accessed on the CPA website at https://www.constructionproducts.org.uk/publications/technical-and-regulatory/brexit-and-the-reach-regulation-under-a-no-deal-scenario/.

General Data Protection Regulation
Some firms in the construction sector may need to transfer personal data with other organisations or subsidiaries in the EU after the UK leaves. Rules governing the collection and use of personal data (data which includes personal details of an individual, or which would enable an individual to be identified on the basis of this), are currently set at an EU-level by the General Data Protection Regulation (GDPR). Under GDPR rules, organisations are only permitted to transfer personal data outside the EU if there is a legal basis for doing so. Organisations which will need to receive personal data from other organisations in the EU will need to take action to ensure those organisations can send them this information without breaching GDPR rules. Guidance on the action’s firms should take to enable the continued flow of personal data has been published by the Government. Details of this can be accessed at https://www.gov.uk/government/publications/data-protection-if-theres-no-brexit-deal/data-protection-if-theres-no-brexit-deal.

Communication with Government
The Chair of the CLC will be writing to the Construction Minister, Richard Harrington, to summarise the conclusions of the Conference and set out the actions that the industry is undertaking to prepare for a no deal Brexit, and the support that we would like from the Government. A copy of the letter will be published on the CLC website.

Winners announced for Fit-Out Futures Awards

Winners announced for Fit-Out Futures Awards

The winners of the 2019 Fit-Out Futures Awards were celebrated at the FIS President’s Lunch in London on Tuesday.

The event saw 300 members and their guests come together to see the winners revelaed in the delighful surroundings of Plaisterers’ Hall. Congratulations to all our winners and the shortlisted entrants.

Apprentice of the Year

WINNER: John Taylor – Stortford Interiors
The judges commented that John was clearly a talented tradesman and that he was also changing attitudes internally about the positive benefits that an apprentice can bring to his company. John was also praised for his understanding of the importance of his work and the need to follow guidelines. He continues to develop as a fantastic example of why the modern apprenticeship system will shape our industry for the future.

RUNNER UP: Danny Beadle – Pexhurst Services
Danny was recognised for his commitment to all aspects of the day-to-day site role, as well as his dedication to learning and improving his skill-set.

Future Leader – sponsored by CCF

WINNER: Simon Broggio – Meronden
Simon is an exemplar of how someone can enter the construction sector as a labourer and with the right attitude and work ethic work their way up to take on a Level 6 Construction Site Managers course. He is already a natural leader and an asset to the finishes and interiors sector.

RUNNER UP: Richard Austen – Stortford Interiors
Richard was awarded runner-up due to his enthusiasm to adopt new ways of working and new technologies. He was also recognised for his ability to manage both his peers and his superiors.

Outstanding Employee

WINNER: Matt Taylor – Astins
With more than 18 years’ experience in the industry, Matt was recognised for his never-ending energy and professionalism for design and to the sector.

RUNNER UP: Ed Kelly – ETAG Fixings
Ed was commended for his exceptional reliability, quality of work, initiative and professionalism, as well as his commitment to Etag’s work values.

Lifetime Achievement Award – sponsored by CCF

Ray Deeks – G Cook & Sons

Ray was chosen as the recipient of this award for demonstrating a lifetime’s dedication to his trade. In particular, he was applauded for the amount of his own time he has committed to sharing his wealth of knowledge and experience with the wider industry.

The judges said: “We all owe Ray a vote of thanks for the legacy that he continues to leave.”

Leaving the EU: actions for your business to take now to be ready for no deal

Leaving the EU: actions for your business to take now to be ready for no deal

HMRC has announced that businesses will be able to use simplified declarations and postpone payment of duties under Transitional Simplified Procedures (TSP) if there is a no-deal Brexit (although there will be additional information needed for controlled goods). The measures will be reviewed after 3 to 6 months and businesses will be given 12 months’ notice if they are to be withdrawn.

Businesses can sign up for TSP online from 7 February at www.gov.uk/hmrc/eu-simple-importing but they will need an EORI number to do this.  Further information, including which ports TSP applies to, is available at www.gov.uk/hmrc/eu-simple-importing. The list does include Hull, Tilbury, Dover, Immingham (Hull) and Felixtowe.

HMRC has written to all VAT registered businesses (copy letter here) so most construction firms and product manufacturers should have received this directly.