Latest advice helps companies preparing to unfurlough staff

Latest advice helps companies preparing to unfurlough staff

The complex question of how to bring workforce safely off furlough and back to work is examined in detail in the latest guidance to be issued by the CICV Forum in Scotland.

With the Scottish Government authorising a phased easing of the lockdown rules, the Forum’s comprehensive 22-page document, Returning from Furlough, provides a practical step-by-step overview of how employers should bring workers back to full employment.

It is the latest in a series of initiatives from the Forum, which has been at the forefront of construction advice throughout the pandemic, becoming the first port of call for many enterprises seeking clarity.

Fiona Harper, Director of Employment and Skills at Forum member SELECT, said: “The past few months have been a particularly stressful time for both employers and employees, but we are now approaching the stage where firms may be looking at the process of how to ‘unfurlough’ their staff.

“Our latest guidance, therefore, looks in detail at the options that all parties face now that the Coronavirus Job Retention Scheme has been extended until October and employers will be asked to begin to share the burden of paying salaries with the UK Government.”

The latest guidance covers a wide range of issues and examines subjects such as:

  • the timeline for bringing furlough to an end
  • when it can be ended
  • the steps to keep furloughed workers safe
  • measures to ‘unfurlough’ workers
  • ‘unfurloughing’ and ‘re-furloughing’
  • potential refusal to return
  • mental health of staff.
  • The document also supplies useful letter templates covering the long-anticipated restart, as well as any health and safety preparations and a questionnaire to help gather information about the process.

Iain McIlwee, CEO of Forum member of the Finishes and Interiors Sector, said: “This is an excellent guide that brings real clarity to an incredibly complex subject. Whilst it is targetted at Scotland, it is relevant for all in the UK. One thing we are learning in recent weeks is that restarting is more complex than stopping and it is simple and clear guidance like this that is essential to helping companies feel their way forward. The CICV has been one of the positives that I have drawn from recent weeks, it has been open and collaborative and drawn on the strengths of the group. Huge thanks to Vaughan of the SBF who chaired it, to Fiona and the other members of this sub group for a job well done.”

The Forum, made up of trade associations, professional services bodies, companies and individuals, stepped into the fray immediately in March with advice on how to operate safely while carrying out emergency or essential work. It has since then been drawing on the collective expertise of its members to maintain a steady supply of information and practical advice to the sector as well as carrying out surveys, producing animations and posters, hosting webinars and making appeals to Government Ministers.

You can download the Guide via the FIS COVID-19 Employment Toolkit (see section on Furloughing)

Domestic reverse charge VAT for construction services – delay in implementation announced

Domestic reverse charge VAT for construction services – delay in implementation announced

Domestic reverse charge VAT for construction services – delay in implementation announced

Following pressure from the industry (including a letter signed by FIS in the Telegraph last weekend). HMRC have announced that the introduction of the domestic reverse charge for construction services will be delayed for a period of 5 months from 1 October 2020 until 1 March 2021.

A domestic reverse charge means the UK customer who gets supplies of construction services must account for the VAT due on these supplies on their VAT return, rather than the UK supplier. This removes the scope for fraudsters to steal the VAT due to HMRC and follows similar measures introduced in response to criminal threats for mobile telephones, computer chips, emissions allowances, gas and electricity, telecommunication services and renewable energy certificates.

The domestic reverse charge for building and construction services was originally planned to come into force on 1 October 2019, but it has already been delayed for a year in response to industry concerns.

In a statement published to day HMRC have reported: “To help these businesses overcome the effects that the coronavirus pandemic has had on them and give them more time to prepare, the introduction of the reverse charge has been delayed for a period of 5 months until 1 March 2021.”

In this statement they go on to report that HMRC remains committed to the introduction of the reverse charge and has put in place a robust compliance strategy for tackling fraud in the construction sector using tried and tested compliance tools.

In the intervening period, HMRC will continue to focus additional resource on identifying and tackling existing perpetrators of the fraud. It will also work closely with the sector to raise awareness and provide additional guidance and support to make sure all businesses will be ready for the new implementation date. The additional amendment to require end users and intermediary suppliers to notify their sub-contractors of their end user or intermediary supplier status in writing is designed to make sure both parties are clear whether the supply is excluded from the reverse charge. It reflects recommended advice published in HMRC guidance and brings certainty for sub-contractors as to the correct treatment for their supplies. If followed, it will remove a concern that HMRC may seek to challenge the reverse charge treatment where a business that qualified as an end user or intermediary supplier had not given any notification of their status.

In response to this statement Iain McIlwee, CEO of Finishes and Interiors Sector stated “On the one hand it is good news we have a delay, but I am still baffled by the unblinking need to carry on regardless. For me HMRC have found a way to solve a problem that just shifts burden away from HMRC and onto industry, create new admin and uncertainty. Government must realise that cashflow is critical in construction, whenever this is introduced it creates an air bubble for specialists – simply kicking the can down the road doesn’t make this go away. Draconian tax measures are not what is needed right now, we need to be learning from the COVID response and the successes and failures of schemes like CBILS in conjunction with procurement practices that support liquidity – if we don’t get this in place many more businesses will fail and Reverse Charge VAT may well be the tipping point”.

You can read in full the Revenue and Customs Brief 7 (2020): domestic reverse charge VAT for construction services – delay in implementation here

To access The FIS Implementing Reverse Charge VAT Toolkit – click here

Trade Credit Insurance backed by £10 billion guarantee

Trade Credit Insurance backed by £10 billion guarantee

Finishes and Interiors Sector (FIS) this morning welcomed the announcement from Business Secretary Alok Sharma that Government is able to provide guarantees of up to £10 billion to Trade Credit Insurance schemes for business-to-business transactions.

Trade Credit Insurance, provides essential cover to hundreds of thousands of business-to-business transactions, will receive up to £10 billion of government guarantees, ministers announced today. Business Secretary of State Alok Sharma said:

“Trade Credit Insurance is a daily necessity for hundreds of thousands of businesses across the UK – particularly those in non-service sectors such as the manufacturing and construction sectors. Our £10 billion guarantee gives peace of mind to businesses, allowing them to continue to trade and maintaining liquidity in supply chains. This reinsurance scheme is an important step as we carefully set about firing up our economy as we emerge from the pandemic.

The Economic Secretary to the Treasury, John Glen said:

“Billions of pounds of business turnover is supported by Trade Credit Insurance each year. This reinsurance scheme will see the government and insurers working closely together to ensure that the vast majority of this cover remains in place. This means that businesses and supply chains can continue to be protected at this pivotal time as we begin to kick start the economy.”

Chief Executive of the Finishes and Interiors Sector, Iain McIlwee added:

“The guarantees will provide much needed reassurance to manufacturers and distributors and support them in extending credit to contractors in the Finishes and Interiors Sector. A key risk identified in our planning was concern that credit agreements could shorten at a time when cash is already short. Cash flow will be critical over the next few months and whilst many have opted not to or been knocked back by schemes like CBILS, the removal of lines of credit traditionally available to them would have been catastrophic. I know there has been some hard work put in to this through the Construction Leadership Council and we are grateful to our colleagues at the Construction Products Association and Builders Merchant’s Federation who have done a lot of the heavy lifting”.

Trade Credit Insurance underwrites an estimated £350 billion of economic activity of more than 630,000 businesses in the UK each year. It insures suppliers selling goods against the company they are selling to defaulting on payment, giving businesses the confidence to trade with one another.

The full statement from the Minister is available here.

Construction Leadership Council Proposals set out a Roadmap for a post-Covid-19 revival

Construction Leadership Council Proposals set out a Roadmap for a post-Covid-19 revival

The Construction Leadership Council’s Covid-19 Task Force has laid out a roadmap of proposals that will help to secure the future of construction businesses nationwide, while setting the industry on a sustainable path towards recovery.

Roadmap to Recovery details the key actions that industry, clients and Government that will support the recovery of the £413 billion UK construction and built environment sector. Front and centre is the premise that, employing over 3m workers across the UK and exporting billions of pounds of products and services, the construction sector construction is uniquely placed to drive the national economic recovery.

The strategy aims to increase the level of activity, accelerate the process of industry adjustment to the new normal and build capacity in the industry to deliver strategic priorities, including: increasing prosperity across the UK; decarbonisation; modernisation through digital and manufacturing technologies; and delivering better, safer buildings.

There are 3 phases to the roadmap, which it is suggested are delivered over a two year period:

Phase 1: Restart – increase output, maximise employment and minimise disruption (0-3 months)

Restart is now well underway, with various Government interventions in placed focussed on supporting cashflow and both phased return to work plans in place across the UK with H&S Guidance reflecting requirements across the home nations. The Roadmap recognises concerns about training and retaining apprentices and the need to urgently develop a talent retention scheme, reacting to a potential short-term dip in employment. Beyond this, the focus is on both client and industry behaviours and the need for relief measures such as those provided for by PPN02/20 and equivalent public sector procurement measures in Scotland, Wales and Northern Ireland. The recovery plan emphasises the importance of Public and private sector clients committing to following Government and CLC guidance on responsible contractual behaviour and recommends widespread adoption of the Conflict Avoidance Pledge.  It highlights too the need for renewed industry commitment to ensure prompt payment to firms within the supply chain.

In a recent FIS survey, it was concerning that only 12% of respondents reported that they can continue to operate profitably in all cases under new site operating procedures. This concerning situation is recognised in the Roadmap which recommends the urgent need to undertake work on cost planning related to operating under new site procedures and to share this across the public and private sectors.

Phase 2: Reset: drive demand, increase productivity, strengthen capability in the supply chain (3-12 months)

A key theme of reset is to build on elements highlighted in the restart phase to define new ways of working to embed better and more collaborative business models and contractual terms into the sector.  The theme of productivity looms large and the Roadmap identifies that new approaches will be needed to compensate for the loss of productivity due to restrictions and the importance of encouraging investment in particularly digital and offsite capabilities.  The Roadmap highlights the importance of ongoing work on competency and better collaboration. It also identifies the need for stimulus with Housing and Building Safety as priority areas.  The FIS has recently written to the Construction Minister highlighting Schools and accelerating the Building Safety Programme – this is picked up in the Roadmap referencing supporting towns, homes and employment to level up the UK, and invest in developing the infrastructure chapters of local growth plans.

The Roadmap also flags up the importance of delaying the Reverse Charge VAT (as reported in the Telegraph this weekend).

Phase 3: Reinvent: transform the industry, deliver better value, collaboration and partnership (12-24 months)

Seizing the opportunity to secure a better future for the construction sector is central to Phase 3. This phase is very much about tangible outcomes from a period of change and ensuring the potential of digital and offsite solutions are realised and that step changes are made in terms of the embracing net zero carbon targets and ensuring that collaborative procurement models ensure that the sector meets the requirements of the new building safety regime. It also recognises the need to modernise the training and qualifications system for construction to ensure that this is fit for purpose, and will support the delivery of the skills that the industry will need in future such as those related to the delivery of net zero carbon, and the multi-skilling of the construction workforce to increase flexibility and adaptability

The ultimate outcomes will be a more capable, professional, productive and profitable sector, which delivers better value to clients, better performing infrastructure and buildings, and competes successfully in global markets.

Iain McIlwee CEO of the Finishes and Interiors Sector, “This is a great start from the CLC and it is encouraging that this Roadmap is not a huge departure from a journey that in many ways we have already started.  It builds on and re-emphasise a lot of the concepts we are familiar with from the Construction Sector Deal and locks in learnings from the work of the Building Safety Review.  It has been a tough few months for everyone and it is clear that there is more challenges ahead as the industry starts to open up, but it is good to finally start looking a bit further ahead.  We look forward to working with the Minister and colleagues from across the construction sector to ensuring that the spirit of collaboration is upheld and we are all held to account to ensure that the industry emerges stronger.   The Roadmap starts to show us the way, but it also recognises construction is a complex ecosystem and it is beholden now on sectors such as ours to look at the detail as it applies to our community and ensure we develop sub-sector specific plans and look at behaviours and activities that align us with CLC’s overarching Recovery Plan and the one industry sentiment that underpins it”.

The task force is now engaging with Government to test how the plans proposals might be delivered. FIS is an active member of the CLC Advisory Group and participates in weekly updates where members views are carried forwards.

The roadmap to recovery plan can be downloaded here.

 

FIS joins Building chiefs to urge delay on VAT reforms

FIS joins Building chiefs to urge delay on VAT reforms

As reported in the Telegraph this weekend, FIS joined leaders from across the construction sector calling on the Chancellor to delay the controversial change in VAT which they say poses a threat to the survival of firms hit hardest by the virus crisis.
Industry chiefs representing thousands of construction companies warned that an upcoming VAT “reverse charge” would put pressure on cash-strapped firms and further damage the troubled sector.
Concerns about construction firms going under have accelerated during the pandemic, with more than 4,000 projects with a combined value of £68bn delayed or cancelled by Covid-19, according to research company Barbour ABI.
In a joint letter, more than a dozen trade bodies, including the Finishes and Interiors Sector, said that many firms no longer had the financial resources or man power required to prepare for upcoming changes, with many of the required staff – including in finance or IT – currently on furlough.
The new rules, which are being introduced to combat tax fraud, will see VAT charges on certain construction services paid directly to HMRC instead of the supplier.
The letter make it clear that changes to the way VAT payments were collected would pile on administrative burdens for those struggling with the economic impact of the pandemic.
The new measures are also likely to squeeze cash flow for businesses no longer receiving VAT payments, particularly smaller firms and those that have requested government-backed rescue loans. Services affected by the new reverse charge include construction work on larger structures, such as buildings, roads and bridges.
Industry groups have asked for the changes to be pushed back by at least one year as companies grapple with the effects of the crisis.
Britain’s building and construction industry employs nearly three million people across 315,000 firms, and represents 9pc of GDP. Industry chiefs said delaying VAT reverse charges would help support the wider economic recovery.
Phased return welcomed in Scotland – but safety and collaboration is key

Phased return welcomed in Scotland – but safety and collaboration is key

The CICV Forum, supported by FIS, has welcomed the first tentative steps announced to get the sector in Scotland back to work – but insists health and safety and collaboration must be at the heart of the phased return.  The collective – which includes FIS has been working towards restart with a number of bodies, including the Construction Leadership Forum – commented after First Minister Nicola Sturgeon said Scotland will begin a process to reopen construction sites from May 28, alongside other measures.

Under the phased return to work, businesses in Scotland will be allowed to resume work on sites, based on a six-point plan which the government has developed with the industry.  In her statement today, the First Minister said: “The construction industry will be able to carefully implement steps one and two of its six-step restart plan, which it has developed with us. However, let me be clear, that there must be genuine partnership with trade unions – this can only be done, if it is done safely.”

The six phases are:

  • Phase zero: Planning.  From 28th May (next Thursday)
  • Phase one: COVID-19 pre-start site prep
  • Phase two: “Soft start” to site works
  • Phase three: Steady state operation (only where physical distancing can be maintained)
  • Phase four: Steady state operation (where physical distancing can be maintained and/or with PPE use)
  • Phase five: Increasing density/productivity with experience

The overriding focus on safety has been welcomed by the Forum, which has successfully produced a range of industry advice about correct working during course of the crisis.  This is supplemented by the FIS’s own H&S Toolkit.

Commenting on the announcement from the First Minister, FIS CEO, Iain McIlwee stated “This will be welcome news to all of our members in Scotland, project restart can begin.  We look forward to working with them and colleagues from the CICV Forum in understanding the phases and helping to make the transition through as clear, smooth and safe as possible.  In doing this we can learn from lessons in other parts of the UK, certainly the safety first, people first approach sets the right precedent.  I very much hope the spirit of collaboration continues – we need to ensure that this carries into the working practices and that the supply chain continues to pull together, works through the productivity and safety challenges and ultimately practices the principles set down in the Conflict Avoidance Pledge.  We don’t just want to return we want to use the opportunity to reset the industry and leave some of the negative behaviours and practices behind us, to work together to make the Scottish Construction Industry better than it was before.”

Vaughan Hart, Managing Director of Forum member the Scottish Building Federation, said: “The shutdown in Scotland has been one of the biggest challenges the sector has ever faced and, while we wholeheartedly welcome the return to work, it must be carried out in the proper manner.

“This means that the health and safety of operatives is paramount, and the correct guidance and procedures must be adhered to at every phase of the proposed route map. The Forum has been at the forefront of helping the industry by clarifying advice and this effort will now come into its own.”

The Forum says it now plans to release more guidance to help business owners, contractors and apprentices through each stage of the phased return, including advice for construction sites, domestic work and colleges.

Alan Wilson, Chair of the CICV Forum and Managing Director of SELECT, the electrotechnical trade body for Scotland, said: “This is the news we have been waiting for and it has not come a moment too soon.

“We all understand the reasons why Scotland has been in virtual shutdown since March, and we all need to work together to assist the sector as it faces an uphill struggle to recover.”

Hew Edgar, Head of UK Government Relations and City Strategy, added “One of the most important lessons to come out of the crisis is the value of working together for mutual benefit.

“The Forum, was only created eight weeks ago, and is the perfect example of this principle, having brought together a huge range of organisations and individuals in a concerted effort to protect the industry.

“As we restart the sector, collaboration between everyone involved – clients, architects, surveyors, contractors, subcontractors and suppliers – will be of the utmost importance since many of the issues which beset the industry pre-COVID, such as late payments and retentions, will still need to be addressed.”

Download the Coronavirus (COVID-19): framework for decision making – Scotland’s route map through and out of the crisis

Construction Industry Coronavirus (CICV) Forum issues five-point plan to help contractors

Construction Industry Coronavirus (CICV) Forum issues five-point plan to help contractors

The CICV Forum has written to Holyrood urging the Government to adopt a five-point plan to assist contractors through the worst of the COVID-19 crisis.

The collection of 23 trade and professional bodies (including FIS) has addressed its appeal to Kevin Stewart MSP, Minister for Local Government, Housing and Planning.  The letter asks the Scottish Government to implement the following five key points, along with desired aims:

  • Agreement by public sector procurers on all project costs at March 31, including resolution of disputes, and payment within 14 days.
    Aim: Release cash to the industry and the supply chain.
  • Public sector procurers to consider release of all or part of retentions.
    Aim: As above.
  • Introduction of 14-day payment period when construction recommences.
    Aim: Improvement of cashflow.
  • Introduction of Project Bank Accounts (PBAs) when construction recommences.
    Aim: Ensuring rapid cashflow.
  • Lowering PBA threshold on public sector procurement to £250,000
    Aim: Ensuring rapid cashflow.

The urgency of the appeal was highlighted by the fate of the latest victim of the building industry shutdown – Central Building Contractors (Glasgow), which went into administration at the end of April, making 148 staff redundant and sending shivers down the supply chain.

Len Bunton, head of the CICV Forum Clients sub-group, said: “Even before the sudden shutdown of the construction industry in Scotland, the sector was experiencing extreme difficulties in relation to cashflow and payment. Urgent attention to payment cash flow and fairness is now needed by the public and private sector in Scotland.”

Iain McIlwee, CEO of Finishes and Interiors Sector (FIS) added, “Our industry faces an unprecedented challenge in Scotland and we need to to all we can to ensure that we protect it during this hibernation phase so that it is ready to scale back up and support growth again in Scotland.  Critical to this is protecting cash reserves and Government must lead by example.”

The CICV Forum, which was set up two months ago, now has 23 trade and professional body members. It has established a series of influential sub-groups dealing with mission-critical aspects such as Health and Safety, Skills, Communication and Future Planning.

Find out more about the CICV Forum here

Guidance from HMG on how to work safely during the coronavirus pandemic

Guidance from HMG on how to work safely during the coronavirus pandemic

New guidance on safer working has been published for a variety of sectors including “Construction and Other Outdoor Work” and also “Guidance for people who work in or run offices, contact centres and similar indoor environments” can be accessed here.  The Guidance does little to extend the work of the Construction Leadership Council.  On the construction specific elements there is a working group in place to review whether new guidance will result in changes to the Site Operating Procedures, but in the meantime it is worth referring to new Guidance on PPE and Face Masks to support existing risk management strategies (note this is not construction specific and repeated for all sectors).

Personal Protective Equipment

PPE protects the user against health or safety risks at work. It can include items such as safety helmets, gloves, eye protection, high-visibility clothing, safety footwear and safety harnesses. It also includes respiratory protective equipment, such as face masks.

Where you are already using PPE in your work activity to protect against non-COVID-19 risks, you should continue to do so.

At the start of this document we described the steps you need to take to manage COVID-19 risk in the workplace. This includes working from home and staying 2m away from each other in the workplace if at all possible. When managing the risk of COVID-19, additional PPE beyond what you usually wear is not beneficial. This is because COVID-19 is a different type of risk to the risks you normally face in a workplace, and needs to be managed through social distancing, hygiene and fixed teams or partnering, not through the use of PPE.

The exception is clinical settings, like a hospital, or a small handful of other roles for which Public Health England advises use of PPE, for example, first responders and immigration enforcement officers. If you are in one of these groups you should refer to the advice at:

Workplaces should not encourage the precautionary use of extra PPE to protect against COVID-19 outside clinical settings or when responding to a suspected or confirmed case of COVID-19.

Unless you are in a situation where the risk of COVID-19 transmission is very high, your risk assessment should reflect the fact that the role of PPE in providing additional protection is extremely limited. However, if your risk assessment does show that PPE is required, then you must provide this PPE free of charge to workers who need it. Any PPE provided must fit properly

Face coverings

There are some circumstances when wearing a face covering may be marginally beneficial as a precautionary measure. The evidence suggests that wearing a face covering does not protect you, but it may protect others if you are infected but have not developed symptoms.

A face covering can be very simple and may be worn in enclosed spaces where social distancing isn’t possible. It just needs to cover your mouth and nose. It is not the same as a face mask, such as the surgical masks or respirators used by health and care workers. Similarly, face coverings are not the same as the PPE used to manage risks like dust and spray in an industrial context. Supplies of PPE, including face masks, must continue to be reserved for those who need them to protect against risks in their workplace, such as health and care workers, and those in industrial settings like those exposed to dust hazards.

It is important to know that the evidence of the benefit of using a face covering to protect others is weak and the effect is likely to be small, therefore face coverings are not a replacement for the other ways of managing risk, including minimising time spent in contact, using fixed teams and partnering for close-up work, and increasing hand and surface washing. These other measures remain the best ways of managing risk in the workplace and government would therefore not expect to see employers relying on face coverings as risk management for the purpose of their health and safety assessments.

Wearing a face covering is optional and is not required by law, including in the workplace. If you choose to wear one, it is important to use face coverings properly and wash your hands before putting them on and taking them off.

Employers should support their workers in using face coverings safely if they choose to wear one. This means telling workers:

  • wash your hands thoroughly with soap and water for 20 seconds or use hand sanitiser before putting a face covering on, and after removing it
  • when wearing a face covering, avoid touching your face or face covering, as you could contaminate them with germs from your hands
  • change your face covering if it becomes damp or if you’ve touched it
  • continue to wash your hands regularly
  • change and wash your face covering daily
  • if the material is washable, wash in line with manufacturer’s instructions. If it’s not washable, dispose of it carefully in your usual waste
  • practise social distancing wherever possible

You can make face-coverings at home and can find guidance on how to do this and use them safely on GOV.UK

Further details of the recovery strategy and social distancing guidelines can be found below:

You can visit the FIS COVID-19 Hub here.
You can access the FIS COVID-19 H&S Toolkit here (this includes the FIS Guide to PPE)

Budget Highlights for FIS Members 2020

Budget Highlights for FIS Members 2020

Change and Coronavirus were the main themes of the Budget. It was a Budget warning of short term pain, but long term gain and the catchphrase was “Getting it Done”.  The good news for the construction sector was that this included “Getting Britain Building”. The Chancellor confirmed that Coronavirus will create some short term pain, but Government announced some practical methods to help businesses and individuals through it. Growth this year still predicted at 1.1%, accelerating to 1.8% next year.

A quick run down of key announcements (including measures to support people and businesses through a period of uncertainty created by the Coronavirus).

For the Sector:

The Construction sector as a whole will benefit from the £175 billion additional expenditure in infrastructure expenditure. The Chancellor advised that the Office of Budget Responsibility has greeted this positively predicting that it will boost growth by 0.5% pa. A big focus of this is devolution and the Budget included the announcement of a new Metro Mayoral authority in West Yorkshire and emphasised the importance of unlocking the potential of all of the UK through this investment.

Housing

  • Affordable Homes Settlement extended
  • Cutting Interest Rates on Social Housing by 1% should unlock investment from this sector
  • Confirming £1.1 bn towards the Housing Infrastructure Fund to build c 70,000 houses
  • Additional £400 m fund for mayoral authorities to build housing on brownfield sites
  • A “Building Safety Fund” worth £1 billion announced to extend the ACM Remediation Fund.

For the workers:

  • Confirmed Statutory Sick Pay starting from day one
  • NICS threshold raise to £9,500
  • The national living wage to increase to two-thirds of median earnings by 2024 (it will increase to £10.50 / hr)
  • Self Employed benefitting quicker an easier access to Universal Benefit (from day one) as a direct response to the Coronavirus.  Minimum income level will be removed.

For the employers:

  • Statutory Sick Pay – as a temporary measure, businesses with less than 250 employees will be eligible to claim this with up to 14 days refunded in full
  • New Temporary Business interruption loan scheme up to £1.2 million to support SMEs announced (underpinned by with 80% gov backed guarantees)
  • Fuel Duty Frozen
  • £130 million of new startup loans
  • £200 million British Business Bank to invest in scale up
  • Fair Tax – review and reform entrepreneurs tax relief, not to fully abolish, but reduce lifetime limit to £1 million
  • R&D Expenditure Credit to increase from 12% to 13%
  • Structured Building Fund increased from 2 to 3% to support investment
  • Cut taxes on employment
  • Whilst our members won’t benefit from the extension of the retail business rate relief to cover the hospitality sector, some may be eligible for the £3,000 cash grant available to companies who benefit from the small business rate relief.  You can check the ‘rateable value’ of your property – this is set by the Valuation Office Agency (VOA) and used by your local council to calculate your business rates bill. https://www.gov.uk/correct-your-business-rates.  FIS will be reinforcing our messages around Asset Management in the announced longer term Business Rate Review.

Sustainability

  • Introduce new plastic packaging tax, £200 per tonne tax on packaging made of <30% recycled
  • Red Diesel Relief Scheme abolished for most sectors delayed for two years (agriculture exempted and discussions with other industries over the summer).

Flood Defences

  • Doubling Expenditure

Education

  • £1.5 bn new funding to dramatically improve the Further Education College estate

A more detailed analysis for FIS Members has been prepared by the CPA and is available to download here.

FIS CEO, Iain McIlwee summed the speech up:

“I think we have to tip our hat at the Chancellor, he is getting things done – this was a Budget for business and the people, the tone was optimistic and inspired hope. The £175 billion investment in infrastructure is tangible and, at least in part, it has allayed some of the concerns that the Coronavirus creates. Particularly announcements on SSP are encouraging and ensure support is quantifiable and helpful.  Access to credit will no doubt help allay some fears too.

Having been calling for a Building Safety Fund for some 2 years now, it is encouraging to hear that the ACM Cladding fund is being extended to look more holistically at this. We look forward to learning more about how this will work. My concern is that on the surface it doesn’t go quite as far as ideally we’d like, but will respond more fully on this once the detail is available”.

Find out about the FIS Three Steps to Rebuilding Construction Campaign here.

 

FIS Launches 3 Steps to Rebuilding Construction Campaign

FIS Launches 3 Steps to Rebuilding Construction Campaign

Following our letter to the Chancellor, consultations with our membership and recent publication of the CBI State of Construction Report, FIS President, Helen Tapper, is recommending a three step approach to rebuilding construction:

Step 1:  Return to the principles of the JCT (and NEC contracts) and stop amending them

Step 2:  Rethink insurance through Integrated Project Insurance

Step 3: Draw a line under the past with a Building Safety Fund

Helen Tapper explains more here

Budget Highlights for FIS Members 2020

FIS writes to Chancellor ahead of Budget 2020

Ahead of the 2020 Budget, FIS, the representative body for the finishing and interiors sector has written to the new Chancellor, Rt hon Rishi Sunak MP.  In this letter FIS welcomes the new Government’s focus on the Constructor Sector Deal, but cautions that legacy and liquidity issues mean the sector needs support to effect real and profound change in a meaningful time frame.   The letter then looks at seven critical areas where intervention would be welcomed including the introduction of a Building Safety Fund (extending the current remediation fund), a review of insurance provision for the sector, more leadership on fair payment issues through public sector contracts, a review of business rates and how this encourages investment in buildings, consultation on resolving credit issues in construction, reconsidering Reverse Charge VAT and extension of the way that Apprentice Levy Vouchers can be invested in our training infrastructure.

FIS CEO, Iain McIlwee, stated, “The industry needs to look to the future, but this is difficult with the shadow of the past looming over us.  To step beyond this is about marginal gain and hence we have drawn out seven key areas where Government could intervene.  The simply fact is that the industry is evolving, but it is difficult to step beyond the past when many of the same behaviours are enduring and we are hampered by a lack of credit constraining investment and operating in an environment where risk has been parcelled up and pushed down the supply chain in contracts that are just unfair.  Construction is such a huge driver for the economy accounting for around 10% of employment, the housing crisis still looms large, we need to get on top of sustainability issues and we have buildings in urgent need of refurbishment to ensure that they are safe, these must be priorities for the Chancellor and we look forward to hearing how he is going to address the suggestions that we have raised sit at the very heart of our industry and society”.

You can read the full letter here:  Letter_to_Chancellor 2020

Astins Administration – Support through the FIS for the workforce

Astins Administration – Support through the FIS for the workforce

All at the FIS were shocked and saddened to read the news yesterday that Astins had entered administration.  Details of the events that led up to the news have been reported on SpecFinish here.

This is devastating news for all involved and our hearts go out to all of the families of the 209 employees and wider workforce that have been impacted.  The statement issued by Astins describes a perfect storm of all of the issues that are currently impacting the construction sector in the UK, with specialists left carrying an unacceptable level of risk both from a contractual and financial perspective.

We have already sent information to the Department of Business, Energy and Industrial Strategy as Intervention is required.  Something has to be done to look at the credit crunch that is undermining investment and deepening our risk exposure – we need a credit guarantee scheme dedicated to construction. We need to review again the inadequate policies that are making no meaningful difference to abhorrent payment and contractual cultures and to revisit the idea of a Construction Credit Guarantee Scheme and Building Safety Fund to address legacy issues that will undermine progress.

First things first though, we are encouraging all employees of Astins to send us their contact details and appealing to any companies interested in recruiting some of the excellent people that were working at Astins to get in touch.

Details of how to exchange details are included on our JobSpot here

Iain McIlwee, CEO FIS

FIS COVID-19 News Archive

26.6.20  New measures to help the construction industry boost building and return to work safely have been announced by MHCLG. Planning permission deadlines will be extended, planning appeals will be sped up and builders will be allowed more flexible working hours following agreement with their local council.

25.6.20 FIS updates guidance on PPE, Face Coverings and Surgical Face Masks based on new information from the HSE.

22.6.20 CICV Forum welcomes First Minister’s announcement of move to next phase of return to work. The Construction Industry Coronavirus (CICV) Forum has welcomed further easing of restrictions to help get the sector in Scotland back to work – but insists health and safety and collaboration must continue to be at the heart of an industry-wide approach.

22.6.20 The Cabinet Office has released a new Procurement Policy Note, PPN 04/20 ‐ Recovery and Transition from COVID‐19, which extends the relief available to public sector suppliers under PPN 02/20 ‐ Supplier Relief due to COVID‐19 until 31 October 2020. PPN 04/20 applies to all contracting authorities, including central Government departments, executive agencies, non‐departmental public bodies, local authorities, NHS bodies and the wider public sector, which must ‘continue to pay suppliers as quickly as possible, on receipt of invoices or in accordance with pre‐agreed milestone dates, to maintain cash flow and protect jobs’.

22.6.20 Public Procurement Review Service allows suppliers to anonymously raise concerns they have about public sector buying and prompt payment – Public Procurement Review Service (PPRS) allows suppliers to anonymously raise concerns they have about public sector buying and prompt payment and it’s free to use. It is one of a range of measures designed to make Government easier to work with, levelling the playing field for those who want to supply to Government. The work of PPRS can lead to live procurements being adjusted, outstanding payments made for work completed, with recommendations being made to Contracting Authorities leading to improvements in the way government sources goods and services in the future.

  • There has been over 1,800 referrals since 2011;
  • PPRS helped suppliers reclaim over £7.9 million from over 350 late payment cases reported to the service and had a 100% success rate of releasing payments on undisputed invoices.

19.6.20 The Mayor of London has confirmed that construction vehicles will have a six-month exemption from implementing the next stages (Stages IIIB and IV) of the Non‐Road Mobile Machinery (NRMM) Low Emission Zone  when it comes into effect on 1 September 2020. This means that all construction machinery will now have until 1 March 2021 to meet the requirements.

18.6.20 – Scottish First Minister Gives Green Light for Phase 3 of Construction Restart Model – A £230 million Return to Work package has been unveiled to help stimulate Scotland’s economy following the coronavirus (COVID-19) pandemic.

17.6.20 – FIS Associate and Employment Law Advisor Citation has developed a redundancy starter checklist covering the key things a company will need to think about before embarking on the process. Further advice is available in the FIS Employment and Workforce Management Toolkit.

17.6.20 CLC People Survey: New report warns of significant job losses in constructionA survey conducted by BuildUK predicts a 10% drop in the construction workforce by September with potentially more falls to come.

17.6.20 £78m Return to Work package launched for Construction in Scotland – A £230 million Return to Work package has been unveiled to help stimulate Scotland’s economy following the coronavirus (COVID-19) pandemic, this includes £78 million allocated for construction.

16.6.20 Scottish Government has published a further policy note SPPN 8/2020  Supplier relief payments are intended to allow public bodies to consider cash flows and payment scheduling, within existing budgets, to support the continuity and retention of suppliers to ensure critical service delivery is maintained as far as possible during this exceptional period. Suppliers to the public sector are not automatically entitled to payment or other relief under this SPPN or SPPN 5/2020, and when considering the case for providing supplier relief, public bodies should take account of, and ensure suppliers are sighted on, the other sources of government support that are available.  This note is supplementary to and extends SPPN 5/2020, it comes into effect on 1 July.

16.6.20 The Construction Leadership Council (CLC) and Finishes and Interiors Sector (FIS) welcomes the publication of the Infrastructure and Project Authority’s (IPA) Procurement Pipeline which identifies public sector procurement planned to go out to tender throughout the 2020-21 financial year.

16.6.20 Trade Credit Insurance Guidance during COVID-19 – The Construction Leadership Council COVID-19 Task Force has published trade credit insurance guidance to support construction businesses in the construction and maintenance supply chain, including building merchants and suppliers. The guidance aims to provide practical advice and considerations for discussions with brokers and insurers when seeking trade credit insurance.

15.6.20 The CICV Site Operating Procedures underpinning guidance for Scotland was recently updated and the revised copy is now available for download. Changes are minor and relate to updated guidance in the event of a CV case and return to work (pages 12 and 29) as well as clarification on (page 11) that

“Current guidelines from Health Protection Scotland do not recommend the wearing of face masks or the undertaking of temperature testing at work; the preferred approach is to ensure physical distancing and good hygiene measures.”

13.6.20 The Government has updated its guidance on the Coronavirus Job Retention Scheme, guidance confirms how the scheme will change from 1 July 2020 to provide for ‘flexible furloughing’ and how claims will be supported.

12.6.20  COVID-19: Travel Update from Build UK – From next Monday (15 June) face coverings will be mandatory on public transport in England to help reduce the risk of transmission of coronavirus when social distancing is not always possible. A face covering is a simple cloth that covers your nose and mouth, and the Government has published guidance on How to wear and make a cloth face covering. Anyone using public transport who does not wear a face covering could receive a fine.

12.6.20 What to do when an Employee has COVID-19 Symptoms or needs to Self-Isolate – Many business owners will in the coming weeks be confronted with a worker who is displaying symptoms of COVID-19 FIS has assembled guidance to ensure our members are ready to cope with this situation. 

11.6.20 The HSE has issued a safety alert regarding KN95 masks – According to the HSE a substantial number of face masks, claiming to be of KN95 standards, provide an inadequate level of protection and are likely to be poor quality products accompanied by fake or fraudulent paperwork. 

11.6.20 Parents returning to work after extended leave eligible for furlough – People on paternity and maternity leave who return to work in the coming months will be eligible for the government’s furlough scheme even after 10 June cut-off date. This will only apply where they work for an employer who has previously furloughed employees. This applies to people on adoption leave, shared parental leave, and parental bereavement leave.

10.6.20 Build UK Contractor members have reported this week that almost all of their sites in England and Wales are now open, with 97% of infrastructure and construction sites operating, up from 93% a fortnight ago. Output continues to rise slowly, with infrastructure sites achieving 89%, up from 85%, and construction sites improving from 74% to 78%.

Members that include housing in their portfolios have confirmed that 93% of housing sites in England and Wales are now open, up from 68% a month ago, with output rising from 53% to 78% during that period.

The situation in Scotland remains very different, with just 21% of projects running and output at 27%. The Scottish Government is currently implementing Phase 1 of its COVID‐19 route map through and out of the crisis, which aligns to Phases 0 and 1 of the Construction Re‐Start Plan developed to get the industry back to work safely.

8.6.20 New measures at the UK border to protect against a second wave of the pandemic will be introduced from 8 June 2020. These new measures may affect materials or products being imported for use in construction. Road haulage, freight workers and some manufacturing services engineers will be exempt from the 14 days of self-isolation.

6.6.20 BSI has published UK Safe Working Guidelines to help businesses manage a safe return to work and reoccupation of their facilities. The guidelines are intended to become a consensus of good practice and BSI encourages the business community and members of the public to have their say and share their learnings and insight on safe working to help protect public health.

5.6.20 Face coverings to become mandatory on public transport – From 15 June, face coverings will be required while using public transport in England. The UK Government asks transport operators in England to make wearing face coverings a requirement of using public transport from 15 June. Bus, coach, train, tram, ferry and aircraft passengers must wear a face covering on their journey to help reduce the risk of transmission when social distancing is not always possible. The safer travel guidance for passengers is available here.

5.6.20 Latest advice helps companies preparing to unfurlough staff – The complex question of how to bring workforce safely off furlough and back to work is examined in detail in the latest guidance to be issued by the CICV Forum in Scotland.

5.6.20 Get Scotland Building – Unlocking the construction market with information – As of last week, the Scottish Government has allowed the construction sector to start work on preparing its sites for a safe return to work – Phase 1 on the industry Re-Start Plan – and industry has been asked to “consult with government to ensure it is safe to do so in line with public health advice” before starting Phase 2 on that plan – the” Soft Start” return to work.

4.6.20 10 June deadline for furlough scheme – The final date by which an employer can furlough an employee for the first time will be 10 June 2020.

3.6.20 Trade Credit Insurance backed by £10 billion guarantee – Government to provide guarantees of up to £10 billion to Trade Credit Insurance schemes for business-to-business transactions

1.6.20 The Construction Leadership Council Publishes a Roadmap to Recovery – Roadmap to Recovery is a strategy to drive the recovery of the construction and built environment sectors, and through them the wider UK economy, following the Covid19 pandemic and economic downturn.

31.5.20 Temporary relaxation of the enforcement of the GB drivers’ hours rules: all sectors carriage of goods by road – Based on the current evidence, the relaxation of the GB domestic drivers’ hour rules will continue until 23:59 on Sunday 14 June 2020.

30.5.20 Chancellor unveils changes to the Furlough Scheme – From 1 July 2020, businesses will be given the flexibility to bring furloughed employees back to work part time. Wages will for days worked will be the responsibility of the employer, but the scheme will continue for days when work cannot be provided.

From August 2020, the level of UK Government grant provided through the job retention scheme will be slowly tapered to reflect that people will be returning to work. That means that for June and July the Government will continue to pay 80% of people’s salaries.  From August, Government will continue to make the 80% contribution, but responsiblity for paying employer National Insurance (ER NICS) and pension contributions for all furloughed employees will fall to the employer.  In September and October Government contributions will taper by 10% per month, but crucially, individuals will continue to receive 80% of salary covering the time they are unable to work (up to the cap of £2,500).

29.5.20 New Scottish Construction Policy Note (CPN 3/2020): Coronavirus (COVID-19): preparations for contracting authorities to restart the procurement and management of construction contracts. This policy note sets out matters for contracting authorities to consider when making preparations in readiness to implement procurement procedures for new projects and reopen public construction sites which are currently closed due to restrictions for mitigating COVID-19.

29.5.20 New Scottish Construction Policy Note (CPN 4/2020): Coronavirus (COVID-19): managing disputes and cashflow – This policy note sets out how contracting authorities can address the management of disputes held over from site suspension arising from COVID-19 and such matters emerging on any project upon restart.

29.5.20 New Welsh Workplace guidance for employers and employees: COVID19 – New Guidance for employers and employees to keep safe in the workplace during the coronavirus (COVID-19) pandemic from the Welsh Assembley.

29.5.20 Apply for the coronavirus Local Authority Discretionary Grants Fund – details of a new grant to support small and micro businesses with fixed property costs that are not eligible for the Small Business Grant Fund or the Retail, Hospitality and Leisure Grant Fund may be eligible for the Discretionary Grants Scheme.  To be eligible, a business must be based in England, have fewer than 50 employees, has fixed building costs such as rent and was trading on 11 March 2020 has been adversely impacted by the coronavirus.  You cannot apply if your business pays business rates.

28.5.20  The detailed Scottish Construction Restart Plan Published  – In Scotland the First Minister today announced that construction can now start the “Phase 1: Pre-start Prep” phase, as defined within the industry Re-Start Plan can commence.  Consultation with the Scottish Government about moving on to “Phase 2: the Soft Start” is ongoing.  To help accelerate this, the CICV have published Safe return and restart – EXPANDED GUIDELINES TO UNDERPIN CONSTRUCTION, which extends the  Scottish Site Operating Procedures published by Construction Scotland.

27.5. 20 Contractual Guidance From Government – Following publication of its guidance on COVID‐19 Contractual Best Practice, which supports Build UK’s Guidance on Contractual Issues Caused by Coronavirus, the Construction Leadership Council (CLC) is keen to receive feedback on its implementation in practice and any suggested amendments that would be useful. Please send your comments in to iainmcilwee@thefis.org.

27.5.20 Government significantly boosts UK PPE supply with more than 100 new deals – The government has signed deals with more than 100 new suppliers from around the world as well as ramping up domestic production to help meet demand for PPE.

26.5.20 The online service for the Statutory Sick Pay Rebate Scheme has launched today, enabling employers with fewer than 250 employees to apply to HMRC to recover the costs of paying coronavirus‐related SSP. Employers can claim for periods of sickness covering up to two weeks starting on or after:

  • 13 March 2020 ‐ if their employee(s) had coronavirus or the symptoms, or was self‐isolating because someone they live with had symptoms
  • 16 April 2020 ‐ if their employee(s) was shielding because of coronavirus.

22.5.20 Barbour ABI Weekly Covid BriefingThis week has seen a relatively small increase in open projects and a fall in delayed projects. Total open projects have increased in number by 120 and in value by £1.9bn. We now have identified 2,150 open projects with a value of £77bn (£54bn excluding Hinkley Point). Almost all the increase has been in the residential sector.

21.5.20 Phased return welcomed in Scotland – but safety and collaboration is key  – The CICV Forum, supported by FIS, has welcomed the first tentative steps announced to get the sector in Scotland back to work – but insists health and safety and collaboration must be at the heart of the phased return.  A clear six phase plan for contruction has been set down.

21.5.20 Coronavirus and the law: what has been done differently in Wales? The main differences between the legislation applicable in Wales and the legislation applicable in England.

20.5.20 FIS launches new Return to Work Risk Management Checklist – In uncertain times, identifying risk is critical to effective planning. This tool is being developed real-time by the FIS team ensuring that risks are identified and every effort has been made to find the very best sources to help you to manage these risks. The key areas covered are: Leadership | Safety | People | Commercial and Legal | Supply Chain | Cash Flow

20.50.20 Employers able to make claims to the Coronavirus Statutory Sick Pay Rebate Scheme through a new online service – From Tuesday 26 May 2020, small and medium-sized employers, with fewer than 250 employees, will be able to apply to recover the costs of paying coronavirus-related Statutory Sick Pay (SSP) payments they have made to their employees.  Employers will receive repayments at the relevant rate of SSP that they have paid to current or former employees for eligible periods of sickness starting on or after 13 March 2020.

 

19.5.20 New Guidance on Safely Returning to work after Lockdown, from FIS and Cobra Insurance The content of this document has been designed as a resource to assist in the return to work and to support you in planning and the protocols to prepare and safeguard your employees and business. It should be read in conjunction with the Government’s latest advice as well as any sector specific advice for your industry.

19.5.20 New CLC Site Operating Procedures released – As anticipated following new Government Guidance published last week, the CLC Site Operating Procedures have been updated to incorporate a number of technical changes as a result of the new Government guidance published last week.

19.5.20 Official Symptoms list for Employers updated to cover loss of taste and smell A loss or changed sense of taste or smell have been added to the NHS coronavirus symptoms list, alongside a cough and fever to ensure cases are not missed.

19.5.20 Everyone in Wales with symptoms can book a coronavirus test. Wales is joining a new UK-wide system for ordering home testing kits, in line with the Welsh Government’s Test Trace Protect strategy.

19.5.20 Government to accelerate Public Sector Works Build UK advised today that during latest industry conference call with Minister for Business and Industry Nadhim Zahawi last week, where he confirmed that the Government would be identifying public sector construction projects that could be brought forward or accelerated.

19.5.20 Isolation starts to ease in Northern Ireland new advice states Stay at home – only go outside for food, health reasons or work (but only if you cannot work from home)

18.5.20 Official Symptoms list for Employers updated to cover loss of taste and smell A loss or changed sense of taste or smell have been added to the NHS coronavirus symptoms list, alongside a cough and fever to ensure cases are not missed.

18.5.20 Government to accelerate Public Sector Works Build UK advised today that during latest industry conference call with Minister for Business and Industry Nadhim Zahawi last week, where he confirmed that the Government would be identifying public sector construction projects that could be brought forward or accelerated.

18.5.20 Build UK is helping TfL to manage capacity and map future requirements on public transport as more people return to work. Working with our members, we have provided detailed information on over 120 large projects in London, the majority of which are operating staggered start and finish times and do not expect to reach full capacity until July at the earliest.

15.5.20 How do I go about unfurloughing and returning staff to the workplace – Excellent guidance from the CIPD help you plan your organisation’s next steps following a period of furlough or once lockdown measures start easing is available here.

15.5.20 CITB is re-establishing Health, Safety and Environment Test operations in England.  All Pearson Professional Centres in England will be operational from Monday 18 May.  For those outside of England, there are a number of free products to help employers run their own in-house interim testing to give a level of local assurance that an employee is safe to work on their site.

15.5.20 Rapid scaling up of construction evident according to latest figures from Barbour ABIThis week has seen a further significant increase in open projects and a comparable decrease in delayed projects. Total open projects number 2,037 with a value of £75bn (£52bn excluding Hinkley Point). This is an increase of 493 projects and an increase value of £13.4bn.

Most of the increase has been in the residential sector.   Out of the open projects, restarted projects number 961 and have a value of 30.5bn. This is a weekly increase of 285 projects and £10.3bn.   The value of delayed projects has again reduced significantly over the week. We currently have identified 4,266 projects delayed with a value of with a value of £51.3bn.

15.5.20 The cavalry is coming on PPE with new UK Manufacture expected to start as soon as July – More than 70 million FFP2 and FFP3 face masks will be manufactured in Scotland and delivered to frontline health and care workers following an agreement with a global technology company, this should help to ease severe pressure in the construction sector.

14.5.20 New COVID-19 – Site safety checklists, risk assessment tool and toolbox talk available from the CITB – Information has been produced in collaboration with the Construction Leadership Council and supported by Build UK.  The checklist and forms aim to help ensure site operating procedures during COVID-19 are clear and accessible to employees.

COVID-19 – Site operating procedures compliance checklistCOVID-19 – Health safety and environment risk assessment template COVID-19 – A toolbox talk for construction workers | COVID-19 – Weekly site operating procedures checklist

14.5.20 Regulating occupational health and safety during the coronavirus outbreak – HSE is adjusting the focus of its activities, including visits to business premises and sites which will be conducted in line with social distancing regulations and guidelines. HSE will maintain regulatory oversight of how duty holders are meeting their responsibilities in the context of the current public health risk and regulatory approach will continue to take proportionate account of the risks and challenges arising from the pandemic.

14.5.20 Government gives green light to extend working hours for construction sites The Secretary of State for the Ministry of Housing, Communities and Local Government (Robert Jenrick) issued a written statement yesterday around the need for the construction industry to adapt its normal practices. As part of this, temporary extensions to working hours may be required on some sites to facilitate safe working and allow tasks to be completed where social distancing can be challenging. Longer working hours may also be needed to facilitate social distancing in the wider community, for instance by reducing pressure on public transport. It might be necessary to start work earlier in the day or work until later in the evenings.  To enable this he has requested that, with immediate effect, local planning authorities should take a swift and positive approach to requests from developers and site operators for greater flexibility around construction site working hours. This is to ensure that, where appropriate, planning conditions are not a barrier to allowing developers the flexibility necessary to facilitate the safe operation of construction sites during the response to the COVID-19 pandemic and to proceed at pace with work otherwise delayed as a result of COVID-19.  A Q&A to support this approach is available here.

13.5.20 New Charter for Home Builders to support Safe Working – In conjunction with the Ministry of Housing, Communities and Local Government (MHCLG), HBF has produced the below ‘Charter for Safe Working Practice’ to ensure that home building activity is carried out safely and in accordance with the advice of Government and Public Health England during the ongoing coronavirus pandemic.

13.5.20 RICS Disputes Resolutions Service Launches Summary Adjudication – As the economic effect of the Covid-19 impacts severely on the construction industry, there are many contractors in the smaller end of the market who are struggling to access dispute resolution even under the reduced cost of Low Value Adjudication (LVD MAP) process.

For a limited period initially until the end of July, as a specific response to the needs of the industry, RICS are now offering Summary Adjudication for claims below £20 000.

13.5.20 New HMG statistics show over £14 billion in loans  have been issued as part of the coronavirus crisis support. This includes 268,000 Bounce Back Loans worth £8.3 billion (approval rate 74%, average loan £31,241), 36,000 loans worth over £6 billion (50% approval, average loan £169,660) through the Coronavirus Business Interruption Loan Scheme, and £359 million through the Coronavirus Large Business Interruption Loan Scheme.  Experience from FIS is that to date only a third of firms who have applied for the CBILS loans from our sector have been approved to date.  There has been similar more positive (anechdotal) news on the  smaller Bounce Back Loans and there is further good news in that 14 new lenders have been added to the scheme, which will help to widen the reach.

13.5.20 Applications for Self-Employment Income Support Scheme open early – The government’s world-leading scheme to support the self-employed has today opened for claims.

13.5.20 Government to support businesses through Trade Credit Insurance guarantee Businesses with supply chains which rely on Trade Credit Insurance and who are experiencing difficulties maintaining cover due to Coronavirus will get support from the governmentThis should be positive news for cashflow in the construction sector.

13.5.20 Housing Secretary sets out plan to re-start housing market From today anyone in England can move home if they follow new guidance published by Housing Secretary Robert Jenrick.  This should help to unlock the housing market in England.

12.5.20 Chancellor extends furlough scheme until October 2020 – The Coronavirus Job Retention Scheme will remain open until the end of October, the Chancellor announced today. The scheme will continue to apply across all regions and sectors in the UK economy. Furloughed workers across the UK will continue to receive 80% of their current salary, up to £2,500.

From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff. The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.

The scheme will continue in its current form until the end of July. Changes to allow more flexibility will come in from the start of August. More specific details and information around implementation will be made available by the end of this month.

12.5.20 Construction Industry Coronavirus (CICV) Forum issues five-point plan to help contractors – The CICV Forum has written to Holyrood urging the Government to adopt a five-point plan to assist contractors through the worst of the COVID-19 crisis.

12.5.20 Contractual and Commercial Considerations for the Return to Site. New Guidance to support Scottish Contractors from the CICV Forum.

11.5.20 New guidance on safer working has been published by HMG covering eight key working environments.  The Construction Leadership Council will be reviewing Site Operating Procedures in conjunction with this, but in the meantime it is worth referring to new Guidance on PPE and Face Masks to support existing risk management strategies.

11.5.20 The Government is considering how to phase out the Coronavirus Job Retention Scheme, recognising the impact of a ‘cliff edge’ if it ends abruptly at the end of June 2020. A CLC working group has made a number of recommendations to the Treasury on how it could be extended as a ‘work support’ scheme.

11.5.20 In his address on Sunday, the PM said people who could not work from home – including those in the manufacturing and construction industries – should be “actively encouraged to go back to work” but avoid public transport. Mr Raab confirmed that this will apply from Wednesday.  New guidance is anticipated in the next 48 hours from Government to assist the H&S aspects here.  

7.5.20 Emergency loan fund for SME housebuilders in Scotland Housebuilders in Scotland will be able to apply for short-term loans of up to £1 million from the Scottish Government to support them through the coronavirus (COVID-19) outbreak.

Small and medium-sized enterprises (SMEs) with liquidity issues due to the temporary closure of the housebuilding sector will be able to apply to a £100 million Scottish Government emergency loan fund which aims to:

  • safeguard jobs and protect suppliers
  • support post-COVID-19 economic recovery and the continued supply of homes
  • retain diversity of the housebuilding sector

7.5.20 Government Backs New Industry Guidance to Avoid Disputes – The Construction Leadership Council COVID-19 Task Force has published practical guidance for all companies involved in the construction supply chain on how to minimise potential disputes.  This is supported by UK Government today outlining its expectations from businesses as they manage and enforce B2B contracts during the COVID-19 emergency.  The recognise a concern that the construction industry will become embroiled in costly and long-running disputes over the effects of the pandemic on projects if it does not look to engage in collaborative discussions to resolve these issues.

7.5.20 FIS Updates our H&S Toolkit with new guidance on PPE/RPE and Methodologies for Working the toolkit includes a range of supporting resources to help members return to work safely

6.5.20 Build UK partner Anderson Strathern has produced an addendum to Build UK’s Guidance on Contractual Issues Caused by Coronavirus, setting out the amendments required for use in Scotland with SBCC contracts.

6.5.20 Build UK Market Update: BuildUK reported today that this week 73% of sites are open in England and Wales, up from 69% last week. Over 80% of infrastructure and construction projects are running, this is lower in housing just over half of housing sites (55%) are now open for business, compared to 46% last week. Interestingly they are reporting productivity on infrastructure and construction sites is averaging 71%, up from 67% last week. Construction sites in London remain a challenge, although output has improved from 56% to 63% in the last week.

6.5.20 Local leaders pledge to continue vital building safety work – leaders from 25 councils have pledged their commitment to ensuring vital building safety work continues during the pandemic.

5.5.20 Update on the Self-Employment Income Support Scheme – It has been confirmed that the scheme will now be delivered ahead of the original June schedule – with individuals able to apply for the grant from 13 May. HMRC will begin contacting eligible self-employed individuals this week by email, text and letter to inform them that they are eligible and explain what they need to do to apply. Applications will open in tranches using the Unique Tax Reference (UTR) number given to all self-employed taxpayers.

5.5.20 Cast publishes new post Covid-19 Market Overview Mark Farmer, author of the now infamous “Modernise or Die”, has published thoughts on the likely commercial and practical delivery implications on the construction sector arising from the current Covid-19 crisis.  The excellent overview includes the likely impact on current projects still to be completed on site as well as a further look ahead at the considerations that will shape successful future projects being commissioned in what is likely to be a very different real estate market.

5.5.20 CITB has extended the application deadline for its Leadership and Management Development Fund from 12 June to 31 July 2020, in light of the fact that a number of organisations have furloughed staff who would usually prepare the bids for funding. The one-year fund enables CITB-registered businesses with more than 250 directly employed staff to bid for up to £100,000 to develop their leadership, management and supervisory skills.

5.5.20 A discretionary fund has been set up by the Government to support small businesses with less than 50 employees affected by coronavirus with their ongoing fixed property-related costs. Whilst local authorities are being asked to prioritise businesses, such as those in shared spaces and small charity properties, they may choose to pay grants of up to £25,000 to other businesses based on local economic need.

4.5.20 Build UK has teamed up with KPMG to provide excellent guidance on tax measures introduced by HMRC in response to coronavirus, including Time to Pay, business rates and property-related grants, income tax deferral, VAT, and corporate tax.

4.5.20 Alok Sharma, Secretary of State for Business, Energy & Industrial Strategy, has responded to the Construction Leadership Council’s recent letter to the Prime Minister. He confirms that guidance has been provided to public authorities on PPN 02/20, giving those that hold cash retentions the ability to release all or part of these monies in relation to projects and promoting the use of Project Bank Accounts to accelerate payment to firms within the supply chain.  If you have worked on a public sector contract and have retention outstanding, it is worth using this as leverage in trying to secure retention.

4.4.20 The Bounce Back Loan Scheme (BBLS) opens for applications today.

  • Businesses can borrow between £2,000 and £50,000, capped at 25% of turnover, with no fee to access the scheme
  • The Government will guarantee 100% of the loan and there will not be any fees or interest to pay for the first 12 months
  • Loan terms will be up to 6 years and no repayments will be due during the first 12 months
  • Interest rates will be capped at 2.5% per annum
  • Lenders are not permitted to take personal guarantees or recovery action over a borrower’s personal assets (such as their main home or personal vehicle).

To be eligible for the scheme, a business must be based in the UK, have been negatively affected by coronavirus, have been trading on 1 March 1 2020, and not have been an ‘undertaking in difficultly’ as of 31 December 2019.   Note this is different from the CBILS loans that are now kick in at £50,001.

1.5.20 To help contractors working away from home find local accommodation, Build UK has temporarily repurposed its Open Doors website. The website is live but still a work in progress and accommodation will continue to be added. We have teamed up with trade body UK Hospitality, which has confirmed that during the lockdown its members are able to provide accommodation for workers unable to return home. If your site requires accommodation and none is shown locally, please let us know and we’ll work with BuildUK to try and sort something

30.4.20 FIS ‘Four Step People First’ COVID-19 Safety Protocol approach to managing safety gets the Green Light from  experts at COBRA Insurance Brokers, the company we have been working with to develop new insurance products for FIS Members.

30.4.20 Allocation looms again – BG to introduce the allocation system from week commencing Monday 18th May 2020. From 1st to 15th May, we will aim to fulfil all existing accepted and confirmed orders, subject to product availability. New orders may be placed from Monday 11th May for delivery w/c 18th May onwards in line with advised allocation quantities.

30.4.20 Treasury cut taxes to reduce PPE costs – From 1 May 2020, PPE purchased by care homes, businesses, charities and individuals to protect against Covid-19 will be free from VAT for a three-month period.  FIS has raised concerns about this increasing competition for construction works that require use of RPE e.g. to continue working in dusty environments.

30.4.20 Construction Leadership Council Endorses the Conflict Avoidance Pledge – The Conflict Avoidance Pledge has been developed by the Royal Institution of Chartered Surveyors (RICS). Under the pledge, clients and contractors commit to implementing conflict avoidance measures in their contracts and on site. The pledge will reduce the financial cost of disputes and help projects be delivered on time and in budget.

30.4.20 Research by the Construction Leadership Council’s Covid-19 Taskforce on financial support to the sector has said that Government-backed loans to construction businesses must be streamlined.  Note, the Institute of Chartered Accountants in England and Wales (ICAEW) has published guidance on preparing a strong loan application.

29.4.20 FIS and a number of Trade Associations from a number of key sectors members  met with Paul Scully, Minister for Small Business, Consumers and Labour Markets, today to discuss regulatory changes and other issues that would support SMEs during and after the coronavirus (COVID‐19) crisis. The Minister recognised the value of SMEs, stating that “people will look back on this time and ask businesses what did you do to support your supply chain and community during the coronavirus pandemic”.

Build UK Chief Executive Suzannah Nichol was one of five representative organisations invited to speak on behalf of small businesses and requested the Minister’s support for the following:

  • Permission to Work
    • Reiterate the message that construction companies of all sizes are being asked to continue their operations alongside the Government’s ‘stay at home’ policy
    • Provide clarity on the work that tradesmen are able to carry out in people’s homes
    • Increase capacity on public transport, providing a safe way to travel to work.
  • Liquidity and Cash Flow
    • Ensure banks are efficiently processing Government‐backed loans
    • Delay or stop the introduction of Reverse Charge VAT in October 2020
    • Stop the withholding of retention monies by the public sector and release retention monies currently withheldo Effectively and consistently implement PPN 02/20 across all public authorities.
  • Maintaining Productivity
    • Confirm and accelerate public sector construction work in the pipeline
    • Ensure planning departments remain operational
    • Agree extended working hours for construction projects
    • Introduce flexibility into the furlough scheme.

29.4.20  The Government has announced that coronavirus (COVID‐19) testing has been extended to anyone who goes into work because they cannot work from home and is showing symptoms of coronavirus. This includes construction workers, as well as people they live with who have symptoms, and there are two ways to arrange a test:

  • Self‐referral ‐ enables workers and members of their households who have symptoms to book a test directly using the online system
  • Employer referral ‐ allows employers to refer workers for a test via a secure portal. Employers will need to obtain a login by emailing portalservicedesk@dhsc.gov.uk with their organisation name, nature of their business, region, and names and email addresses for two users. Contractors may find it more efficient for clients already registered for their essential workers to request the test on their behalf.

29.4.20 Build UK Contractor members are reporting that almost 70% of their sites are open in England and Wales. The majority are construction (81%) and infrastructure (78%) sites, with members that include housing in their portfolios confirming that less than half of their housing sites (46%) are open for business. Productivity on construction and infrastructure sites is averaging 67%, with London construction sites proving to be a particular challenge at just 56% output being achieved.

28.4.20 The Construction Leadership Council has launched a new website to showcase the industry’s role in fighting the pandemic.  If you would like to include information on this site email yasminkauser@thefis.org

28.4.20 FIS Four Step Protocol to Develop Safe Systems of Work and the COVID-19 Pandemic 2020  has been developed to ensure that there is a COVID-19 risk assessment in place for the management of health and safety upon each project that prioritises safety, reducing the risk to workers and liability for individual companies.  This supports the work our COVID-19 H&S Workgroup have already completed including our H&S Task Assessment Tool (updated 27.4.20).

28.4.20 FIS Survey Results reveal around 2/3rds still working, 75% of respondents fear Material Supply will hold up recovery and less than 20% have bothered with COVID Business Interruption Loans (CBILS).

27.4.20 The Chancellor today Bounce Back Loans scheme will allow businesses to borrow between £2,000 and £50,000 and access the cash within days. Loans will be interest free for the first 12 months, and from Monday 4 May, businesses can apply online through a short and simple form.  The Government, which has been consulting extensively with business representatives about the design of the new scheme, will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months. No repayments will be due during the first 12 months.  The loans will be easy to apply for through a short, standardised online application. Loans should reach businesses within days – providing immediate support to those that need it as easily as possible.

The scheme will launch for applications on Monday 4 May. Firms will be able to access these loans through a network of accredited lenders. The government will work with lenders to ensure loans delivered through this scheme are advanced as quickly as possible and agree a low standardised level of interest for the remaining period of the loan.

The new scheme will run alongside the existing Coronavirus Business Interruption Loan Scheme (CBILS) and Coronavirus Large Business Interruption Loan Scheme (CLBILS).  As well as adding four new providers to the lender list (taking it now to 52 eligible providers).  The Government is also taking additional steps on the Coronavirus Business Interruption Loan Scheme (CBILS) to ensure that lenders have the confidence they need to process finance applications quickly, including removing the per lender portfolio cap for the government guarantee, and changing the viability tests that so that all banks will need to assess is whether a business was viable pre COVID-19.

27.4.20 To help open up the supply chain, Build UK is working with members of trade bodies from across the sector to demonstrate the levels of demand and members are asked to complete this short Materials & Accommodation Survey to provide the following information as soon as possible and by 5:00pm on Wednesday 29 April at the latest.

25.4.20 Health Secretary Matt Hancock comfortable with Construction scaling back up.  Mr Hancock has told Sky News that while the daily number of UK deaths due to coronavirus meant the country was not yet ready to start easing some social-distancing rules, he was not opposed to building sites and hardware stores resuming work.

“The things that are restarting are things that we never required to close in the first place, but what the companies have been doing is working out how they can have safe working following the social distancing rules whilst people are at work.  Throughout we’ve allowed hardware stores to stay open, and the construction industry, but what businesses have been doing is taking the last couple of weeks to work out ‘ok how do you stay open and stay within the social-distancing rules at work?’. So it’s absolutely fine for those businesses to stay open because they were never required to close by the social-distancing rules. I’m comfortable with what they’re doing.”

24.4.20 The Government has confirmed that coronavirus (COVID‐19) testing is now available for essential workers and members of their households who are showing symptoms of coronavirus. Some construction workers working on projects or infrastructure critical to the response to coronavirus may be categorised as essential workers.  Companies and individuals wishing to access the service can register via the link above.

24.4.20 Construction Industry Survey – Coronavirus Job Retention Scheme. Along with other construction industry bodies, we are keen to understand your experience with the government’s Coronavirus Job Retention Scheme. Please complete this short survey.

21.4.20 New Irish Site Operating Procedures – The Construction Industry Federation in Ireland has now published their equivalent site operating procedures.  There are clear parallels with those produced by the Construction Leadership Council in the UK, however, greater clarity is provided to support close working and transport.

21.4.20 FIS Updates Task Assessment Tool – Based on feedback FIS has now released an updated of our H&S Task Assessment Tool, changes include minor modifications to the main assessment list and the addition of a new checklist to support return to work inspections.

21.4.20 Latest statement from Build UK identifies that the Construction Leadership Council (CLC) is looking at a recovery plan for the industry and how to release workers from furlough in a phased manner. Following its Statement on Payment and Contracts earlier this month, the CLC also continues to call for collaborative ways of working to avoid costly contractual disputes which are more than likely to result in insolvencies.

Whilst construction clients have responded in different ways, the Government has been very clear on the response expected from public sector clients. Earlier this month the Cabinet Office published supplementary Guidance Notes for Construction Contracts to support contracting authorities in implementing PPN 02/20 – Supplier Relief due to COVID-19.

21.4.20 FIS are starting to hear concerns around the probity of PPE that is being purchased to support a return to site.  Working with the British Safety Industry Federation, we are recommending using the BSIF checklist before investing in kit, this has been added to our FIS H&S Toolkit.  FIS has established a working group to review concerns over sourcing and managing PPE related issues, for more information email, georgeswann@thefis.org

20.4.20 Government launches new coronavirus business support finder tool – A new ‘support finder’ tool will help businesses and self-employed people across the UK to quickly and easily determine what financial support is available to them during the coronavirus pandemic.

20.4.20 The Coronavirus Job Retention Scheme is open, you can claim for your employees’ wages through the Coronavirus Job Retention Scheme (CJRS).  A step by step guide for employers has been prepared by HMRC.  So far feedback from FIS members is mixed, mostly positive, but complexity of calculation and issues if periods are not consistent between staff have been flagged.

20.4.20 Northern Irish Assembley publishes list of essential works, the list restricts construction work to:

  • Any new builds/conversions/maintenance supporting, health service and related activities, other emergency and security services, food manufacture, supply & logistics and utilities
  • Any new builds/conversions/maintenance supporting priority sectors identified by either local ornational governments
  • Emergency services to businesses and homes on an emergency call-out basis in areas such as electrical, heating, plumbing, glazing and roofing or emergency repair related to fire, theft and burglary
  • Supply of construction materials and builders’ merchants for the above.

18.4.20 Clarification on The Coronavirus Job Retention Scheme which officially launches on Monday 20 April. Yesterday evening (Friday 17 April) there was a flurry of new guidance on the operation of the scheme.  From clarification on holidays, the revised duration of the scheme and information on how to submit your claim, our experts have summarised the main changes that your business needs to know ahead of Monday.

17.4.20 FIS Launch new COVID-19 Task assessment tool to support companies in making vital H&S decisions.  The tool is a first draft and will evolve over the coming weeks.

17.4.20 The UK Government have advised that the current lockdown procedures will continue for a further three weeks which means that construction sites must continue to implement the Site Operating Procedures ‐ Version 3 for the foreseeable future. Projects are adapting site facilities and introducing extended working hours, and Build UK members Highways England, Wates and VolkerWessels UK have all shared examples of how social distancing is being achieved In-line with advice from Damian James in the recent FIS webinar and the advice on ‘what to do in suspensions‘, it is now important that members issue a further notice advising of the potential impacts on their subcontracts.  The notice should consider any further impacts in the period since the first notice and should advise of the future impacts anticipated. Members should give due consideration to the availability of materials and labour resources along with the expected effects of productivity levels due to distancing between operatives on projects when drafting their notice.

17.4.20 New data from Barbour ABI on State of the Market – Barbour are reporting a further small increase in the volume of delayed projects with the total value currently standing at £71bn. The report includes some interesting survey evidence, a report of projects staying open and further findings of delays at the sub-sector level.

17.4.20 The Minister for Business and Industry Nadhim Zahawi, held a conference call with representatives of BuildUK who gave a first‐hand update on the current challenges faced by the supply chain. Read further details of the Ministerial discussion here.

17.4.20 FIS Members who applied early for the Coronavirus Business Interruption Loan Scheme urged to re-check eligibility  Following this contact from a member yesterday: “I’m indebted to you for the survey this morning as it made me realise that although initially I was not eligible for CBILS as I could get normal commercial borrowing, I am in fact now eligible as they have updated the scheme, thank you for prompting me.  I have just spoken to my Relationship Manager and she will support our application and she says it’s a no brainer in terms of comparison to overdraft.”

On the 3rd April 2020 The Chancellor announced reforms to the loans, which will likely have taken a few days to filter through.  These included:

  • The removal of the need for businesses to show that they can’t get a loan on normal commercial terms before they qualify for the loan scheme.
  • Banning the requirement of personal guarantees for loans of up to £250,000.
  • Although personal guarantees can be sought for loans over £250,000, they will be limited to 20% of any amount outstanding on the lending after other recoveries from business assets.
  • Making operational changes to speed up lending approval

The new rules about security will extend to loans already made to ensure all businesses are treated equally under the scheme. Although the government had previously banned the taking of security against principal private residences, many business owners were not prepared to offer any personal security at a time of such uncertainty.

17.4.20  Chancellor expands loan scheme for large businesses -A government-backed loan scheme for large businesses affected by coronavirus has been expanded to cover all viable firms, the Chancellor announced today.  Outlining further details of the Coronavirus Large Business Interruption Loans Scheme (CLBILS) ahead of its launch on Monday, Rishi Sunak said all firms with a turnover of more than £45 million will now be able to apply for up to £25 million of finance, and up to £50 million for firms with a turnover of more than £250 million.  Business with turnovers of more than £500 million were originally not eligible for the scheme, which is being set up to help firms who do not qualify for the existing Coronavirus Business Interruption Loan Scheme – for small and medium sized businesses – and the Bank of England Covid Corporate Financing Facility – for investment grade companies

16.4.20 Covid-19 Delay Clauses – It is sensible for companies to be proactive and try to ensure that there is protection in their contracts against the effects of Covid-19. This factsheet incluses a suggested example clause, for inclusion in tender packages.

16.4.20 Preparing your Furlough Claim – HMRC has confirmed that the claims portal will open on 20 April. They have in communicating this updated what a claimant will need to know/have before starting. Access a simple checklist here.

You can access the latest Tax Update from the Joint Taxation Council here

16.4.20 Thousands more employees will able to receive support through the Coronavirus Job Retention Scheme (CJRS) after the eligibility date was extended to 19 March 2020, the government announced today.

16.4.20 It has been confirmed that The Health and Safety Executive (HSE) is the enforcing authority for PHE guidelines and will consider a range of actions for non‐compliance, from providing advice to issuing enforcement and prohibition notices. It has also set up a website for workers to report concerns about health and safety where they cannot be resolved by speaking with their employer or trade union.

15.4.20 The impact of COVID-19 across the Construction Industry [Infographic] – following consultation with main contractors, Constructionline introduced a new question set to understand how COVID-19 is affecting members, their businesses, and their staff. Over 3,400 businesses have completed the new question set so far, giving us a great insight into how the industry is coping during this pandemic.

15.4.20 Version 3 Site Operating Procedures Published – click here to download

14.4.20 The Competition and Markets Authority (CMA) has issued guidance outlining temporary measures to relax competition between businesses, in order to ensure that essential supplies are available and key workers can travel safely to their place of work. The CMA has stated that this “does not give a ‘free pass’ to businesses to engage in conduct that could lead to harm to consumers in other ways” and it “will not tolerate unscrupulous businesses exploiting the crisis as a ‘cover’ for non-essential collusion”.

14.4.20 Coronavirus (COVID-19): personal protective equipment (PPE) hub:  A new hub containing guidance on personal protective equipment (PPE), and infection prevention and control (IPC) is now available, containing information for both health and social care settings and other workers and sectors.

14.4.20 Latest Statement from Build UK – Includes confirmation that New Site Operating Procedures to be published later today.

14.4.20 New page to replace Understanding Universal Credit Coronavirus and claiming benefits page –  These pages have additional information and will help answer lots of the questions.  Please promote this new site to employees or members as appropriate.  People making new claims for Universal Credit will no longer need to call the Department as part of the process.

14.4.20 Right to Work – Covid-19: Temporary changes to the Statutory Residence Test – it might be useful for employers/members  who are currently recruiting – some changes to Right to Work checks.

13.4.20 Update from Spain: People in manufacturing, construction and some services are being allowed to return to work following a two-week pause, but must stick to strict safety guidelines. More here.

9.4.20 Launch date announced for Coronavirus Job Retention Scheme. The Chief Executive of HMRC, Jim Harra, appeared before the Treasury Select Committee and announced that their online system for making claims under the Coronavirus Job Retention Scheme has been developed and will be launched on 20 April.

9.4.20 The Construction Leadership Council (CLC) has issued a statement calling for construction businesses to pay in accordance with agreed contractual terms. It is vital that all parties understand the implications of the current situation on their contracts and work together to find solutions.

The CLC is increasingly concerned about the management of payment in the supply chain, and the risk that clients and firms will seek to invoke contractual clauses to the detriment of other firms. We are clear that all construction businesses should continue to pay in accordance with agreed contractual terms. Similarly, firms should not be threatening to invoke penalty or other contractual clauses, when it should be the priority of all clients and firms to sustain the industry. Our actions at this time will be remembered. All firms should think hard about how their reputation could be damaged by not doing the right thing

8.4.20 BuildUK have published an updated version of our Guidance on Contractual Issues which includes an appendix setting out the corresponding sub-contract clause numbers for both JCT and NEC standard forms of contract to make it even easier for your members to use.

8.4.20 CPA – UK Economic and Construction Impacts from COVID-19 (Coronavirus) It is expected that the UK economy will contract sharply in 2020 H1. As the negative effects have occurred since the start of March and will only increase in the next few weeks, economic activity in 2020 Q2 is likely to suffer the largest impacts.

8.4.20 In an open Letter to the Manufacturing Sector Secretary of State for Business, Alok Sharma notes “the Government’s priority is saving lives and we have advised that where possible, people should stay at home and work from home. However, our country needs your support to keep supply chains moving and key workers mobile, as well as to protect the economy as much as possible. Every business has a role to play in helping the country defeat coronavirus.  Manufacturing is a critical part of our economy and I would like to be clear that there is no restriction on manufacturing continuing under the current rules.  Whilst he the then goes on to talk about supplies for essential services, this is the clearest statement yet that the reason Government requires certain industries to carry on is related to longer term economic considerations than just to address immediate health issues from the pandemic.

8.4.20 Barbour ABI Covid-19 Economic Briefing April 2020 – Over the last week we have seen a large increase in the number of projects that have been identified as delayed from the Coronavirus pandemic, with construction sectors other than residential starting to see more widespread shutdowns.   Research identifies that:

  • around half of firms have closed all sites
  • circa 10% are restricting activity to essential work only, and
  • the remainder are taking a mixed approach, from:
    ▪ continuing ongoing activity but not starting new work,
    ▪ cutting working hours,
    ▪ shutting smaller sites, or
    ▪ taking a site by site approach considering worker safety among other factors.

8.4.20 The Welsh Government has provided Guidance on Taking all reasonable measures to maintain physical distancing in the workplace Guidance is designed to support 7A of the Health Protection (Coronavirus Restrictions) (Wales) Regulations 2020, which is aimed at any person who required by the Coronavirus Regulations to take all reasonable measures to ensure that a distance of 2 metres is maintained on particular premises.  Guidance recognises that there will be circumstances in which it is not possible to take reasonable measures (e.g. Tasks that require two or more people to undertake them safely, including heavy lifting or carrying dangerous chemicals, although there may be measures that can be adopted elsewhere in the workplace). But employers will be expected to undertake an assessment before concluding there are no reasonable measures that they can take, and there are no blanket exemptions form this legislation. It is an important principle that employers undertake an assessment of what reasonable measures can be taken and to keep this under periodic review.

8.4.20  Public Health England have updated guidance for construction and we have been advised that the new Standard Operating Procedures are due this afternoon.  Key points to note that within the PHE guidance there is no significant tightening of 2m requirements, just “you should still advise staff to keep 2 metres apart as much as possible” it advices “Where face-to-face contact is essential, this should be kept to 15 minutes or less wherever possible”.  There is no reference to appropriate PPE.  It also again gives the rationale that Construction work plays an important role in ensuring public safety and the provision of public services which points to what is essential without defining it.  There is also updated guidance for those working in a domestic setting.

The new manufacturing advice follows a similar thread and reminds “Manufacturing plays an important role in the economy. It can continue if done in accordance with the social distancing guidelines wherever possible. Where it is not possible to follow the social distancing guidelines in full in relation to a particular activity, you should consider whether that activity needs to continue for the business to continue to operate, and, if so, take all the mitigating actions possible to reduce the risk of transmission between staff.”

Advice for retail operations and logistics companies such as builders merchants is also available.

All advice emphasises that to protect your staff, you should remind colleagues daily to only come into work if they are well and no one in their household is self-isolating.

8.4.20 How do you treat the Bank Holidays and annual leave for furloughed employees? New guidance for your business from our partner, Citation

7.4.20 The Cabinet Office has published Guidance Notes for Construction Contracts, providing detailed information for public authorities on how to implement Procurement Policy Note 02/20. New guidance makes it clear that suppliers and contractors must be supported although they should be prevented from claiming separate relief from another source of government financial support on Covid-19 – “to the effect that the supplier gains an undue advantage by claiming relief twice for the same hardship”.

7.4.20 RIDDOR reporting of COVID-19, HSE now determines that you must only make a report under RIDDOR (The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013) when:

  • an unintended incident at work has led to someone’s possible or actual exposure to coronavirus. This must be reported as a dangerous occurrence.
    or
  • a worker has been diagnosed as having COVID 19 and there is reasonable evidence that it was caused by exposure at work. This must be reported as a case of disease.

7.4.20 Two-metre rule will protect all workers in Wales from coronavirus – The regulations will mean the 2 metre social distancing rule will apply to any workplace, including homes, where work and repairs are being undertaken and outdoor spaces. The new rules apply to those workplaces not already covered by the original stay-at-home rules introduced almost 2 weeks ago.  The regulation does not state contruction works must stop, but can continue if the 2m rule can be upheld.  A further challenge in Wales for construction workers is the advice from Transport for Wales that states:

Roads should only be used:

  • by key workers (such as health professionals)
  • for travelling to provide support in local communities
  • to get to shops for essential food and medical supplies.

It is currently unclear how this will be interpreted in realtion to construction workers, where there is still no definition for essential works, but for those travelling to site it is advisable that they carry a letter of authorisation (see template resources section on this page).  It is important to note in Wales, this 2m working rule is a Regulatory requirement.

7.4.20 Scottish Government issues Guidance that non -essential construction works should cease– Work on construction sites, unless it is for essential projects (as defined in the new Critical National Infrastructure List), should stop immediately, as confirmed in new guidance for the construction industry.  The guidance makes clear that work on non-essential construction projects should cease unless it is supporting crucial work during the coronavirus (COVID-19) pandemic.  Any project deemed essential can only continue operating if it can comply with guidance on social distancing, safety and welfare during the COVID-19 outbreak. Any site unable to meet these requirements should close.  This guidance will be reviewed again in 3 weeks, but the position is work should not begin again until we can all be clear how operations can be undertaken safely and in a way that is fully compliant with social distancing.

6.4.20 The government has finally confirmed that apprentices can continue with funded training when employers use the job retention scheme, subject to being paid the apprenticeship minimum wage “for all the time they spend training”.

6.4.20 New Guidance published on use of Face Masks in non-Clinical settings

6.4.20 Update from BuildUK – We are entering the third week of lockdown and liquidity is now the critical issue for construction. This point was made loud and clear to the Construction and HS2 Ministers last week by representatives from across the supply chain.

5.4.20 Business Secretary appeals to everyone to stay calm and carry on the good work.  Business Secretary, Alok Sharma, writes for The Sun on Sunday thanking workers and businesses for their support during the coronavirus pandemic.  FIS responds, pointing again to confusion still being perpitrated in the statement around essential works and the practicality of 2m safe distancing rules.

3.4.20 Coronavirus Business Interruption Loan Scheme revamped  in light of increasing calls from business owners that financial support is not getting through sufficiently quickly, or at all,  to those who need it most. Only £145 million of the £330 billion finance made available by the government has been lent to date.

The Chancellor’s reforms included:

  • The removal of the need for businesses to show that they can’t get a loan on normal commercial terms before they qualify for the loan scheme.
  • Banning the requirement of personal guarantees for loans of up to £250,000.
  • Although personal guarantees can be sought for loans over £250,000, they will be limited to 20% of any amount outstanding on the lending after other recoveries from business assets.
  • Making operational changes to speed up lending approval

The new rules about security will extend to loans already made to ensure all businesses are treated equally under the scheme. Although the government had previously banned the taking of security against principal private residences, many business owners were not prepared to offer any personal security at a time of such uncertainty.

3.4.20 A new Coronavirus Large Business Interruption Loan Scheme will offer 80% government guarantees on loans of up to £25 million to businesses with an annual turnover of between £45 million and £500million  (the ‘squeezed middle’ who fell between the previously announced schemes of support for SMEs and larger businesses). These loans will be offered at commercial lending rates and further details will be announced shortly.

3.4.20 Construction Leadership Council held a conference call yesterday afternoon with Nadhim Zahawi, Minister for Business and Industry with responsibility for Construction, and Andrew Stephenson, Minister of State at the Department for Transport with responsibility for HS2 and the Northern Powerhouse Rail, where they heard from industry representatives, including Suzannah Nichol, Build UK Chief Executive, and Leo Quinn, Chief Executive of Balfour Beatty, on the issues affecting the whole supply chain.  The Ministers reaffirmed that construction is a cornerstone of the economy and the vital work it is performing now, and in the future, will be crucial to the economy’s recovery.

The Ministers reaffirmed that construction is a cornerstone of the economy and the vital work it is performing now, and in the future, will be crucial to the economy’s recovery.

2.4.20 FIS to establish COVID-19 H&S Taskforce.  There are a number of instances that are being identified in the Finishes and Interiors Sector where it may not be possible to comply with the 2m individual proximity rule.  FIS is establishing a structured process to look at individual tasks and situations and is forming a taskforce to review the list, create appropriate risk assessments and identify options, that will ensure, where possible, works can continue safely.  Through this process we aim to produce clear unambiguous guidance and a more agile approach to review innovative solutions and support the sharing of best practice.  We are asking companies in our community to complete the this questionnaire to help initiate this work.

2.4.20 URGENT New CLC Site Operating Procedures (v2) have been withdrawn. Note version 2 had included more explicit advice around safe working distances, a request from Transport for London (TfL) to avoid using the tube network during peak times and updates from PHE to reference those living with someone who has shown signs of COVID‐19 infection, those living with someone who is shielding, 60%+ alcohol‐based hand sanitiser and advice pm keeping groups of workers together to minimise transfer of infection across the workforce.  We await clarification on the particular issues that led to withdrawal, but in the meantime companies are advised to refer back to CLC Site Operating Procedures Version 1.

2.4.20 New Guidance Issued through the Construction Leadership Council on Furlough.  This includes a comprehensive FAQs list on construction specific queries.  I know from discussions with many of you that this is a hot-button issue at the moment, so I trust it can prove useful.  Updates are likely, and this document will be updated accordingly.

2.4.20 New Guidance for FIS and Cobra Insurance Issues Related to COVID-19

1.4.20 CLC letter to PM 01 April 2020:  In response to the letter from Secretary of State Alok Sharma MP, The Construction Leadership Council writes to the Prime Minister to ask him to look again at support for construction businesses and clarity over a Minimum Essential Works list

31.3.20 FIS Employment Law Advisors Citation are hosting a webinar for members specifically on Coronavirus and HR and Employment Law on Wednesday 1 April at 1:00pm. You will need to register to book your place.

31.3.20 To help protect health on construction sites and maintain social distancing during COVID-19, CITB has produced a toolbox talk for construction workers. Topics covered include: travelling to work and what to do if someone thinks they are unwell. More details, including posters for supervisors to display in the workplace, can be found here. Further safety guidance from the Construction Leadership Council can be found here.

31.3.20 CITB A three area support package focusing on cash flow explained in a video, levy collection delayed until August, 20 week claiming rule suspended giving longer time for employers to grant and early payment of apprenticeship grants. FIS is offering free skills clinics to help companies review their existing claims to ensure that they are optimising grant claim.   To access email: info@thefis.org

31.3.20 Trade bodies in Scotland have set up the Construction Industry Coronavirus Forum to lead the industry response to the pandemic. The position on construction work in Scotland is not clear, with First Minister Nicola Sturgeon advising that “sites should close unless the building being worked on is essential – such as a hospital” without then specifying what else is considered essential. The Scottish Cabinet Secretary for Economy Fair Work and Culture has written to representatives in the industry, stating: “We are considering whether guidance could be issued to determine if a construction site can be safely operated in line with social distancing”.

31.3.20 Secretary of State Alok Sharma writes an open letter to the construction industry to thank for their service.  It is the view of the FIS that this letter does little to clarify matters around essential works and concerns over site safety.

31.3.20 Right to Work checks have been temporarily adjusted to make it easier for employers to carry them out during the coronavirus outbreak. Until further notice, employers do not need to see original documents and can complete Right to Work checks over video calls.

31.3.20 HMRC is running a series of webinars to provide an overview of the support available to help employers and your employees deal with the economic impacts of COVID-19.  You can book a spot on one of these here.

31.3.20 The Construction Leadership Council welcomes the launch today of the Construction Industry Council Low Value Disputes Model Adjudication Procedure (LVD MAP). This adjudication procedure will help SMEs in the construction industry to resolve disputes simply, quickly and cost-effectively. More here

31.3.20 Noble and the economics team at the Construction Products Association have also been producing a regularly updated Covid-19 Market Impact Report and we hope that the detailed insight and scenario planning are of help to all of you trying to navigate the business impact that we are currently experiencing.

 

31.3.20 The Construction Leadership Council, working with the Construction Coronavirus Taskforce, has developed new guidance – Advice on temporary suspension of sites – to ensure that any closures can be achieved as safely as possible, avoiding potential issues while the site is not active.  This guidance is available here.  Members who are leaving offices vacant during this time are reminded to consult with their insurers regarding the extent of cover for an unoccupied building.

30.3.20 No change for construction on the daily briefing.   The UK’s chief scientific adviser Sir Patrick Vallance says there has been a “dramatic fall-off” in the use of the London Underground, as well as a decrease in the use of buses, national rail, and motor vehicles.  He highlights half of all hospital admissions are in London.

30.3.20   A Letter of Authorisation template for the use of companies operating as critical workers or in accordance with Public Health England’s Social Distancing Guidance.   Concerns have been that people have been stopped by the police whilst travelling to construction sites.  We have received an update from BEIS as of the 3th March that all chief constables have be sent the pro forma letter and Government policy clarification.

30.3.20 The Construction Minister, Nadhim Zahawi finally spoke up in The Telegraph on Sunday: “These businesses need to be defended, because we need to minimise the damage to our economy where possible, and be ready to spring back into action as soon as this lockdown is over. There will always be some work that cannot be done from home, whether it is construction or packing boxes in an Amazon warehouse – but we still need houses built and for deliveries to be made”.   FIS is calling for consistency of message, and is disappointed that this tone is not reflected in the Daily briefings.

30.3.20 Coronavirus (COVID-19): an update on the Grenfell Tower site – In response to government advice on the Covid-19 pandemic, the re-wrapping of the Tower has been paused to avoid staff going on-site or using public transport. The re-wrapping progressed well in March, and the remaining ‘older’ wrapping on the lower floors is in good condition. We do not believe pausing the re-wrapping is a cause for concern, but the team is happy to take any questions you might have.

30.3.20 Latest Statement from Build UK – Over the weekend, Alok Sharma, Secretary of State for Business, was questioned on the issue of individuals going to work and not feeling safe to do so. He was very clear that, where work cannot be undertaken from home, people should go to work and employers must follow Public Health England (PHE) guidance. Build UK on behalf of the Construction Leadership Council (CLC) has developed Site Operating Procedures specifically for construction sites to ensure they are compliant. Read the full statement here.

29.3.20 Government amends insolvency law to help companies keep trading while they explore options for rescue – Under the plans, the UK’s Insolvency Framework will add new restructuring tools that mirror the USA’s Chapter 11 procedure, a well-established model adopted by countries around the world.  This includes:

• A moratorium for companies giving them breathing space for from creditors enforcing their debts for a period of time whilst they seek a rescue or restructure;

• Protection of their supplies to enable them to continue trading during the moratorium; and;

• A new restructuring plan, binding creditors to that planThe proposals will also include key safeguards for creditors and suppliers to ensure they are paid, while existing laws against fraudulent trading and the threat of director disqualification will continue to act as an effective deterrent against reckless misuse of these new measures.

The Government will also temporarily suspend the wrongful trading provisions to give company directors greater confidence to use their best endeavours to continue to trade during this pandemic emergency, without the threat of personal liability, should the company ultimately fall into insolvency.

28.3.20 No change for construction – In daily update Business Secretary was questioned on the point on individuals going to work and not feeling safe to do so. He responded that there are workforces where you can’t work from home- in those areas, individuals should go to work but it was incumbent on employers that they follow PHE guidance.  In his speech he identified that companies would have more flexibility on holding these meetings, (e.g. virtually) and that the Business Loan Scheme would be open on Monday.

27.3.20 Good uptake for CITB advance apprenticeship attendance grants for second and third year apprentices in advance (full story here). Already over 600 employers apply for this additional support. We would encourage anyone who is eligible to receive this grant to fill in the form here.

27.3.20 Guidance for employers on the coronavirus (COVID-19) Job Retention Scheme has now been published. The Coronavirus Job Retention Scheme is a temporary scheme open to all UK employers for at least three months starting from 1 March 2020. We expect the scheme to be up and running by the end of April. It is designed to support employers whose operations have been severely affected by coronavirus (COVID-19). (see excellent Q&A resource pulled together by FIS Association Citation that gives more insight.)

26.3.20 CITB Suspends Levy – CITB’s board met yesterday (March 25) and gave final approval to suspend the issue of its levy bills, due for payment in 2020, for an initial period of three months.

26.3.20 CCF have made the decision to only open 13 branches from  Monday 30th March, these branches will remain open on a reduced delivery only service and will be providing products to key essential projects, critical to the increased needs  of the national healthcare efforts.

26.3.20 British Gypsum call a halt on Manufacturing – whilst we continue to support NHS and other essential infrastructure, building and maintenance projects in the UK, in balancing the now reduced needs of our valued customers, with the needs of our suppliers and colleagues, we will temporarily cease production in the majority of our UK based manufacturing facilities from tomorrow, Friday 27th March 2020.

26.3.20 Build UK Clarify Site Operating Procedures – No‐one will be required to travel or work if the social distancing requirements cannot be met and members will be working closely with their supply chains during this time.

26.3.20 New package of support for the self employed announced by the chancellor – further details available in the relevant section on this page below

26.3.20 Request for Information from FIS – if you are trying to access through your bank a COVID-19 continuity loan, please email janeknight@thefis.org your experience.  Critical information is how accessible, what guarantees are you being asked for, how is it being delivered (as a loan product or overdraft), what are the likely timescales.

26.3.20 New Guidance from BuildUK on Contractual Issues this comprehensive guidance for has been produced for all parties in the supply chain on contractual issues caused by coronavirus. The guidance offers practical advice on what to do in each situation.

26.3.20 Ban on evictions for commercial tenants – Commercial tenants who cannot pay their rent because of coronavirus will be protected from eviction.

26.3.20 TfL suspends all road user charging schemes to help critical workers

 

26.3.20 What to do if you do not feel the conditions you are working in are safe – If any FIS Members are being expected to work in an unsafe way, the HSE operates a whistle blowing service.  Please feed your concerns in to the FIS via

25.3.20 –It was this morning confirmed that yesterday there was a telephone conference of the Build UK Major Contractors who discussed a collective decision for sites to shut. Following that call, a number of members went back to their Boards and have now confirmed that they are closing their sites. Read the full statement from Build UK here

25.3.20 What to do if you do not feel the conditions you are working in are safe – If any FIS Members are being expected to work in an unsafe way, the HSE operates a whistle blowing service

25.3.20 Companies to receive 3-month extension period to file accounts during COVID-19 – From today (25 March 2020), businesses will be able to apply for a 3-month extension for filing their accounts.

25.3.20 Government clarifies rules that confirm work can continue on people’s homes – Work carried out in people’s homes, for example by tradespeople carrying out repairs and maintenance, can continue, provided that the tradesperson is well and has no symptoms. Again, it will be important to ensure that Public Health England guidelines, including maintaining a two metre distance from any household occupants, are followed to ensure everyone’s safety.

No work should be carried out in any household which is isolating or where an individual is being shielded, unless it is to remedy a direct risk to the safety of the household, such as emergency plumbing or repairs, and where the tradesperson is willing to do so. In such cases, Public Health England can provide advice to tradespeople and households.

No work should be carried out by a tradesperson who has coronavirus symptoms, however mild.

24.3.20 BMF clarifies Builders’ Merchants’ role during COVID-19 Restrictions

24.3.20 The Chancellor says help is coming for the self employed – You can read the House of Commons Public Committee Amendments: Coronavirus Bill pages 14-18 here.  Alternatively download the amendments PDF here.

24.3. 20 Support for Apprentices – CITB is paying, in advance, apprenticeship attendance grants for second and third year apprentices to help keep skills in the construction industry amid the Coronavirus outbreak.

The payments will be made from 6 April for apprentices already subject to CITB grant support and who are currently in the second or third year of their apprenticeship for the remainder of the year. The payments are expected to be able to support 7,500 apprentices, and will advance up to £2,500 in attendance grant at a time when retaining apprentices is critical. To read the press release on this please click here.

CITB has worked with the Education and Skills Funding Agency (ESFA) to discuss funding rules on breaks in learning for apprentices. ESFA have issued guidance for apprentices, employers and training providers, you can read the guidance here.

CITB has helped apprentices return home from National Construction Colleges in Bircham Newton, Erith, Kings Norton and Inchinnan; every CITB apprentice is being contacted by their Apprenticeships Officer this week. Online learning tools (functional skills videos) have also been made available to help apprentices continue their studies from home. These videos are available to all apprentices, not just CITB’s. Information on how to register and access the videos can be found here.

A dedicated email helpline for all apprentices and their employers providing advice and signposting during COVID-19 has been set-up by CITB. Please e-mail CITB at Apprenticeships.COVID19@citb.co.uk for assistance.

24.3.20 New guidance for employees, employers and businesses about protection from eviction for commercial tenants and extension of BID arrangements.

24.3.20 Reports that  there have been several instances today of police officers visiting construction sites and requesting the closure of these.  BEIS have emphasised that this action is “not consistent with the Government guidance, which is clear that construction sites should continue to operate if they can do so in a manner consistent with PHE guidance, recognising that the vast majority of construction work cannot be undertaken from home.

We are working with the IPA and the Home Office to ensure that accurate information is provided to the police, to prevent this from happening in future. If you receive questions from your members, please do explain the position as set out above.”

24.3.20 The Coronavirus Business Interruption Loan Scheme (CBILS), specifically for SMEs and provided by the British Business Bank via your usual bank or lender, is now available. There is no maximum cap set for lending supported through the scheme, so there is no immediate need to approach your lender if your business does not need finance at the moment

24.3.20 Through BuildUK, as part of their response to the Covid-19 pandemic, FIS is asking members to complete this survey on the support that The UK Government has put in place a number of actions to support UK businesses through the Covid-19 pandemic. All individual responses will remain confidential.

24.3.20 FIS has written to the Construction Minister, BEIS and thc CLC for urgent clarification to be issued.  Current position from COBR, sites should continue to operate if they can do so in a manner consistent with PHE guidance (see CLC Operating Procedures), recognising that the vast majority of construction work cannot be undertaken from home.

24.3.20 Major merchant groups announce they will pause distrubution whilst they await clarity from the Government, CCF and Minster have both put out statements on social media to advise the sector.  All Saint Gobain businesses, manufacturing and distribution are closing for 24 hours from this morning whilst they seek clarification from government on how they can operate within the new government guidelines.

23-3-20 Prime Minister’s speech further tightens guidance – The speech included new guidance on staying at home and away from others.  Advice states you should only leave the house for one of four reasons:

● Shopping for basic necessities​, for example food and medicine, which must be as infrequent as possible.
● One form of exercise a day, for example a run, walk, or cycle – alone or with members of your household.
● Any medical need​, or to provide care or to help a vulnerable person.
● Travelling to and from work​, but only where this absolutely cannot be done from home.

You can read the full advice here.

23-3-20 Update Guidance from the Construction Leadership Council Issued:

We are in exceptional circumstances, and are doing our utmost to keep construction sites operational wherever it is practical and safe to do so. Whilst the guidance from Public Health England may change in future, for the time being construction sites of any size that are operating during the Coronavirus Covid-19 pandemic need to ensure they are protecting their workforce and minimising the risk of spread of infection.

To implement the Government’s social distancing recommendation the Construction Leadership Council has now published Site Operating Procedures. I would strongly recommend that these procedures are implemented by every operational construction site, with the aim of us having a standard approach across the industry that all firms and workers can adopt.

It is also vital that the health and safety requirements of any construction activity must not be compromised at this time. If an activity cannot be undertaken safely due to a lack of suitably qualified personnel being available, or social distancing being implemented, it should not take place. We are aware that emergency services are also under great pressure and may not be in a position to respond as quickly as usual.

Andy Mitchell

CLC COVID-19_Site Operating Procedures – 23 March 2020

23.3.20 – Updated eligibility criteria for COVID-19 Corporate Financing Facility to include the Bank of England’s eligibility criteria  here – it has been confirmed that this will be available to all.  Full details still to be announced through the Bank of England, but outline details now available.

23.3.20 – Support for businesses through the Coronavirus Business Interruption Loan Scheme – The scheme is now open for applications. To apply, you should talk to your bank or one of the 40 accredited finance providers (not the British Business Bank) as soon as possible, to discuss your business plan. You can find out the latest on the best ways to contact them via their websites.

All major banks are offering this scheme. If you have an existing loan with monthly repayments you may want to ask for a repayment holiday to help with cash flow.

The full rules of the scheme and the list of accredited lenders are available on the British Business Bank website.

21.3.20 – Guidance on critical workers has now been published – Construction workers are not explicitly referenced in the definition, however the document refers to flexibility and FIS has confirmed with BEIS that this will cover construction workers who are doing jobs that are essential to support public services and consequently workers falling in this category will be able to access school places should they not be able to make alternative provision.

It is important to note that the definition of critical workers is solely for the purposes of allocating places in schools. Everyone else in the industry can continue to work as normal, subject to following advice re: their health and risks of infection.

21.3.20 – Temporary relaxation of the enforcement of the EU and GB drivers’ hours rules: all sectors carriage of goods by road

20.3.20 – Chancellor announces new package of support including VAT holiday, extensions of the interest free period for Coronavirus Business Interruption Loan Scheme and more support for the self employed.

20.3.20 – CITB announces apprenticeship support package the message is please please hold onto your apprentices for the moment help is coming

20.3.20 – New Public Procurement Notice advises public sector to look at how supply chain can be supported includes Government Procurers encouraged to pay suppliers even if work is suspended.

  1. Urgently review their contract portfolio and inform suppliers who they believe are at  risk that they will continue to be paid as normal (even if service delivery is disrupted or temporarily suspended) until at least the end of June.
  2. Put in place the most appropriate payment measures to support supplier cash flow; this might include a range of approaches such as forward ordering, payment in advance/prepayment, interim payments and payment on order (not receipt).
  3. If the contract involves payment by results then payment should be on the basis of previous invoices, for example the average monthly payment over the previous three months.
  4. To qualify, suppliers should agree to act on an open book basis and make cost data available to the contracting authority during this period. They should continue to pay employees and flow down funding to their subcontractors.
  5. Ensure invoices submitted by suppliers are paid immediately on receipt (reconciliation can take place in slower time) in order to maintain cash flow in the supply chain and protect jobs.

We have asked the question as to whether paying any withheld retentions would be possible too.

New guidance for UK businesses trading internationally – including how the DIT is looking to help businesses whose supply chain has been affected by coronavirus (COVID-19) find alternative suppliers.

20.3.20 – Advice on how to access evidence for work absence has now been included in guidance for employees, employers and businesses details here and on online isolation note on providing proof of coronavirus absence from work that can be accessed here.

20.3.20 – New advice from HM Treasury on to access financial support from the Government if you or your business has been affected by COVID-19, this covers SSP (including self-isolation), Universal Credit, mortgage repayment, loans and the new temporary Coronavirus Business Interruption Loan Scheme, more details here

20.3.20 – Potential COVID-19 (Coronavirus) Economic and Construction Impacts report has been pulled together by the Construction Products Association, available to download here

19.3.20 – Fresh concerns over the return of plasterboard allocation following announcement from BG – more information here

19.3.20 – New advice from HM Treasury How to access government financial support if you or your business has been affected by COVID-19, this covers SSP (including self-isolation), Universal Credit, mortgage repayment, loans and the new new temporary Coronavirus Business Interruption Loan Scheme  – download the factsheet here

19.3.20 – CITB Revise Support to Employers to ease cash flow: the 20 week grant claim processing rule is frozen, CITB are urging employers to check their Grant Online accounts for claims which need authorising, and to sign and return any paper Grant Claim forms we have issued as quickly as possible.  FIS can offer free virtual skills clinics to help you to optimise your returns. To book your slot, email: amandascott@thefis.org

19.3.20 – Heath and Safety test centre from Friday 20 March 2020 are temporarily closed they are working on alternative ways to test.  CITB have asked all all Site Safety Plus centres to relax cancellation and refund policies, additionally, any delegate whose SMSTS/SSSTS achievement has expired since 15 March 2020 and who hasn’t been able to renew in time due to COVID-19, will be allowed to take the refresher rather than the full course.  Quality Assurance activities are reduced to electronic responses.  Investigations will be risk assessed case by case as CITB’s compliance teams are committed to continuing their important work of identifying and protecting the construction industry from fraud risks relating to training delivery.

19.3.20 – Guidance from Midas sets the right tone and underpins the position of the Construction Leadership Council, the construction industry is resilient and do all we can to keep sites open.  Read the statement here

19.3.20 – New Public Health Poster – developed to support employers in sharing best practice click here to access the poster

19.3.20 CSCS latest:  CSCS are asking the industry to support the following temporary measures:

  • Requesting employers and those responsible for site access and card checking procedures to use their discretion towards workers whose cards have expired since mid-March onward and who can provide evidence that they have been unable to sit their test or undertake the required training as a result of the closure of Test and Training centres.  This is at the employer’s discretion until the situation has stabilised.
  • CSCS has extended the grace period for card renewals from six months after the card expires to 12 months.  This means that the card can be renewed, once the CITB Health, Safety and Environmental test has been passed, up to one year from the card’s expiry date.

For more details please click here

18.3.20 – Business rates: expanded retail discount – guidance.  Members with “showrooms may be able to benefit” – more advice here

18.3.20 – BLOG: COVID-19: The vaccine that is needed to save construction firms, FIS CEO Iain McIlwee looks at planning for worst case scenario and what measures would be needed to save construction companies should sites close

18.3.20 – FIS updates guidance and provides template resources on home working (thanks to Mansell Finishes for sharing) and on Lay-off procedures, Short-time working and Redundancy (courtesy of Citation) – more here

18.3.20 – Schools in England, Wales and Scotland to close from Friday, Northern Ireland from Monday (for all but vulnerable and children of essential workers).

18.3.20 – CITB taking action, developing training materials to keep sites working, time bound qualifications and cards, closure of National Construction Colleges, all spring Roadshows cancelled to be moved on-line, electronic apprentice reviews, support for CITB Approved training providers, extensions on renewal periods for Site Managers (SMSTS) and Site Supervisors Safety Training Schemes (SSSTS) and postponement of Construction Ambassador events.  For more information click here

18.3.20 – CSCS Ask Industry to Support temporary Measures, Pearson’s Health and Safety test Centres capacity reduced by 50% to allow for additional spacing between candidates.  Card renewal grace period extended from six months to 12 months.  For more information click here.

18.3.20 – Statement from Courts during coronavirus pandemic: Robert Buckland statement.  “Our Crown and Magistrates courts provide a vital public service and until instructed otherwise, we expect all lawyers, magistrates, jurors, witnesses, defendants and court staff to continue to attend court as required, so the interests of justice can be served” More here.

17.3.20 – Extending announcements in last week’s Budget (see below), the Chancellor today announced he would take further action including:

  • support for liquidity amongst large firms, with a major new scheme being launched by the Bank of England to help them bridge Coronavirus disruption to their cash flows through loans
  • increasing the amount businesses can borrow through the Coronavirus Business Interruption Loan Scheme from £1.2 million to £5 million, and ensuring businesses can access the first 6 months of that finance interest free, as Government will cover the first 6 months of interest payments
  • including new legal powers in the Covid Bill enabling us to offer whatever further financial support we think necessary to businesses
  • He also confirmed Mortgage lenders have agreed they will support customers that are experiencing issues with their finances as a result of Covid-19, including through payment holidays of up to 3 months. This will give people the necessary time to recover and ensure they do not have to pay a penny towards their mortgage in the interim.
  • Finally he confirmed that implementation of ir35 reforms would be delayed for 12 months.

Full details are available here

17.3.20 – The Construction Leadership Council with the support of the Construction Products Association and Build UK have written to the Prime Minister to affirm that it is vital that our construction sites are able to remain open. Read the full letter here.

17.3.20 – FIS COVID-19 Risk Management Toolkit updated to include latest advice on what to do if there is a suspected case on site and communicating with your team it has also been simplified Click here to access the Toolkit

17.3.20 – FIS develops new template corresponence to support communicatino with LOSCs covering welfare and hygiene advice, reaction to symptoms and information on how to claim Universal Credit if they are not able to report to site.  This resource can be downloaded here.

17.3.20 – Foreign Secretary advises against all non essential overseas travel. British people who decide that they still need to travel abroad should be fully aware of the increased risks of doing so. That includes the risk that they may not be able to get home, if travel restrictions are put in place. Anyone still considering travel to be realistic about the level of disruption they are willing and able to endure, and to make decisions in light of the unprecedented conditions we face. More here.

16.3.20 – PM announces that now is the time for everyone to stop non-essential contact with others and to stop all unnecessary travel.  People are advised to start working from home where they possibly can.  If you live alone and you have symptoms of coronavirus illness (COVID-19), however mild, stay at home for 7 days from when your symptoms started. if you live with others and you or one of them have symptoms of coronavirus, then all household members must stay at home and not leave the house for 14 days. The 14-day period starts from the day when the first person in the house became ill.

  • For advice for individuals in terms of recognising symptoms and taking action – click here
  • For advice related to travel internationally – click here
  • For advice for employers and businesses – click here
  • Many businesses will be impacted by childcare issues, the latest advice for educational establishments is available here
Brexit Update:  Demystifying Product Marking post Brexit

Brexit Update: Demystifying Product Marking post Brexit

From 1st January 2021 the Construction Products Regulations in the UK have changed.  Whilst the technical requirements for goods historically traded under Construction Products Regulation (CPR) will remain broadly the same on 1 January 2021, a transition on product marking has begun and two new product marks, the UKCA and UKNI marks have been introduced to replace the CE Mark for products placed on the market in the UK (the CE mark will no longer be valid on imports or domestically manufactured products sold in the UK the 1st January 2022).  Products sold in to Europe will still be subject to produce regulations in the EU and carry the CE Mark.

UK Approved Bodies / EU Notified Bodies

These UKCA and UKNI marks will be managed by UK-recognised approved bodies, in place of the current EU system of notified bodies.  Within this change, the recognition of assessment and test reports for the purposes of CE marking where UK bodies are no longer eligible to operate as notified bodies (and visa versa EU bodies who will not be eligible to award the UKCA mark).  This has created some challenges and is yet to be fully resolved.

UK Market Conformity Assessment Bodies database
EU Notified Bodies database

Designated standards

All existing harmonised European standards became UK ‘designated standards’. This means that immediately after the end of the transition period, harmonised European standards and UK designated standards will be identical.

The government has published, and will maintain, a list of these designated standards on GOV.UK.

Designated standards

To assist manufacturers and contractors in understanding their requirements, FIS has produced two simple tables that show requirements for 2021 and how this is likely to change in 2022.  With some fluidity still expected and issues with European Technical Assessments Issued by UK Notified Bodies and test reports issued by UK Notified Laboratories (it is now understood that these can no longer be used for the purposes of CE Marking and you will need to transition to an EU Notified Body for the purposes of CE Marking when placing your products in the European market from the 1st January and to switch to UKCA Marking in the UK via a UK Approved Body).  The situation is different in Northern Ireland, based on the Northern Ireland Protocol and it is vital that you are in conversation with the Notified Body/Test laboratory to ensure that that you are working towards compliance asap in readiness for the New Year.

Product Marking Requirements from January 2021-December 2021

Manufacture in Great Britain Manufacture in
Northern Ireland
Manufacture in EU / Internationally
Place in GB

UKCA

CE

UK (NI) & CE

CE

CE

UKCA

Place in NI

UK (NI) & CE

CE

UK (NI) & CE

CE

CE

UK(NI) &CE

Place in EU CE CE CE
  • You can place the UKCA and CE marking on the same product if it is destined for both the GB and EU markets so long as the product meets the rules for both markets.
  • UK Notified bodies will no longer be able to provide CE marking from 1st Jan 2021, vital to check with your notified body how the transition is being handled
  • The UKCA mark alone cannot be used for goods placed on the market in Northern Ireland

Product Marking Requirements from January 2022

Manufacture in Great Britain Manufacture in
Northern Ireland
Manufacture in EU / Internationally
Place in GB UKCA

UK (NI) & CE

CE

UKCA
Place in NI

UK (NI) & CE

CE

UK (NI) & CE

CE

CE

UK (NI) & CE

Place in EU CE CE CE
  • So long as you have the correct approval from an EU Notified and UK Approved body, there is nothing to stop you using all three marks in accordance with marking requirements,
  • Further clarity anticipated on how the Construction Products Regulations will be applied in Northern Ireland is available here.

It is important to consider whether you are placing or purchasing a system or assembly – if the latter, you will need to consider any marking requirements of the component parts. This will also have implications on any tariff requirements

FIS is keeping our Preparing for Brexit Toolkit up to date here, the risk assessment tool includes links to support preparing for import and export, the EORI process and tariff expectations.

FIS is grateful to the Construction Products Association for support in helping to target and develop guidance for our community.

Additional instructions for use of UKCA and the UKNI images – The rules for using the UKCA and the UKNI images have added additional instructions regarding the height of the markings.

Questions and Answers

Could a manufacturer in GB apply the UKNI & CE to sell across the UK (that is both in NI and GB) thus avoiding the need to use UKCA mark as well?  

From the 1 January 2021, this depends on where the product has been conformity assessed.

If a UK body has assessed the product it will need to have UKNI+CE marking (to allow it on the NI market) in combination with the UKCA mark (for the GB market).

If it has been tested by an EU body it can be CE marked (will allow it on the NI market) and a UK body will need to test it to apply the UKCA mark (for the GB market).

To be clear, UK bodies are able to apply the CE marking only where it is accompanied by the UKNI marking, to indicate that the product is valid for placing on the NI market, but not the EU market. UK bodies are not recognised as competent to apply the CE marking alone, since this would mean the product is valid for the EU market. Without an MRA, UK bodies will not be recognised as competent to test for the EU market.

If I have traditionally relied on ACVP System 4 to manage CE Marking, can I self accredit for the purposes of UKCA Marking?

Where the has been no involvement of an EU Notified Body for the purposes of CE Marking, as is the case with ACVP System 4 then you will not be required to look to a UK Approved Body to support the UKCA marking of a product, it will be up to the supplier to assemble the evidence required to demonstrate they meet ALL relevant parts of the UK regulations.

Under AVCP System 3 and above, where a manufacture must have an Initial Type Test (ITT) report issued by an EU Notified Test Laboratory.  UK Test reports are no longer recognised by the EU thus unilaterally invalidating all existing AVCP System 3 testing carried out in the UK and those for the future for the purposes of CE Marking.  UK manufacturers looking to adopt the UKCA mark in this instance will need to do so by working with a UK Approved Body. 

Additional recommended articles:

Brexit: The Big Three Issues for the Finishes and Interiors Sector

CLC Guide: Conformity Marking of Construction Products Guidance

UK Government: Details of the 12-month transition for CE Marking

UK Government: Construction Products Regulation in Great Britain

Further guidance on how the Construction Products Regulations will be applied in Northern Ireland is available here.

CPA: Concerns if you CE Mark using a European Technical Assessment Issued by a UK Notified Body

 

FIS Preparing for Brexit Toolkit

You can visit the FIS Preparing for Brexit Toolkit here

Please do check back on this page, whilst FIS is making every effort to provide clear information, all advice is provided in good faith, but in an environment where Government are publishing new guidance and hence details subject to review – any deal secured may result in further clarification or change.

Construction Industry Coronavirus (CICV) Forum issues five-point plan to help contractors

Scottish Contractors Forum – Looking ahead to 2020 Building Regs, Product Safety, Contract and Employment Law

The FIS Scottish Contractors Forum took place in Hamilton on the 29th January 2020 and the Construction Scotland Innovation Hub. The group had an excellent informative presentation from three experts from legal firm Addleshaw Goddard who looked at the backdrop in Scotland, changes to the Scottish Building Standards and the impact of Grenfell, changing employment regulation and IR35, Reverse VAT, case law around Smash and Grab Adjudications and the responsibility of contractors under Product Safety Regulations and the impact of Project Bank Accounts.  Iain McIlwee, FIS CEO followed with an update from FIS and a review of the tools and resources available to support members in managing the changes.

Copies of their presentations and supporting materials are available below.

Presentations: FIS_Update_Scotland_29_1_2020

FIS Reverse Charge VAT Toolkit

JTC Newsline January 2020 – advice on ir35

The Academy for Construction People

Enter the Scottish Awards Here

Feedback from attendees

As ever, the subject matter was interesting and I came away having picked up some new information.

Hugh Black

Contracts Manager, Brian Hendry Interiors Limited

North West Regional Contractors Forum – Building Regs, Training and Clean Air

North West Regional Contractors Forum – Building Regs, Training and Clean Air

The FIS North West Regional Contractors Forum took place in Central Manchester on the 22nd January 2020. Our group was hosted by Transport for Greater Manchester and we were treated to presentations by Wayne Timperley, Head of Building Control for Greater Manchester and Megan Black, Head of Freight and Logistics at TfGM and Project Sponsor for the Clean Air Plan. Copies of their presentations and supporting materials are available below.

We also covered the new Interior Systems Apprenticeship Standard and regional training funds that support this, assessment and our ongoing competence work. Details of additional support for NVQ Assessment in the Region are available here.

A specialist support package for apprenticeships has been introduced in the Greater Manchester Combined Authority. 186 small businesses have received grants of £3,000 to help create new apprenticeship opportunities.

If you are concerned or have a strong view on the Clean Air Plan, which will likely start to impact on commercial vehicles from 2021:

Wayne Timperley, FIS CPD event 22Jan2020
GM CAP Proposals Jan 2020
GM_Clean_Air_Plan_Overview_Dec_2019_FINAL

Some feedback from attendees on the day:

“It was good to meet up and I hope there will be more events like this.”
“I found the event worthwhile, very informative and has definitely got the cogs turning.”
“Great meeting”

FIS is in sound shape, making a difference and continuing to grow

The FIS AGM was held on the 19th November 2019 at St Georges Park, Staffordshire (read the minutes here)

In the Outgoing President’s address, Andrew Smith of OWA highlighted that the FIS was in sound financial shape with a little over £25,000 surplus generated in the year 2018.

In his speech Andrew remarked on the continued growth of the FIS, both in terms of membership and influence, particularly highlighting the FIS Product Process People approach to Quality and the FIS Competency SAKE Framework that are both being used to support the development of practical tools for members and starting to influence the wider market. He also used the new FIS Acoustic Verification Scheme as an example of how FIS works through the members to raise standards in the marketplace and actively help members to win work. He concluded by noting that healthy competition for Board places underpinned the growing levels of engagement that FIS was enjoying.

At the AGM, FIS Richard Grimes Grimes Finishings, was elected as a new contractor representative and both Jim Nania of Stortford Interiors and Philip Brown of Meronden were elected to return to the board for another two years. Lydia Sharples, Nevill Long and Stuart Roberts, CCF were also elected as new representatives for the supplier members.

Helen Tapper, Tapper Interiors was confirmed as incoming President at the event and in her opening speech set out the stall for her two year term. Helen intends to focus on continuing to grow the FIS whilst intensifying the fight for SME contractors and striving for greater inclusivity in our workforce. Helen also used the opportunity to announce the new FIS digital presence in the form of a new core FIS website and interiors platform linked to a new partnership with Barbour ABI and relaunch the revamped Fit out Futures Project, which has been extended now to June 2021.

At the meeting, Richard Jones of Paramount Interiors was confirmed as Vice President.