Concerns over negative impact of new immigration system from 62.5% FIS members

Concerns over negative impact of new immigration system from 62.5% FIS members

New data from the FIS indicates that 30% of members are already experiencing labour shortages and 62.5% are concerned for what the New Year brings.  FIS is hosting a workshop on 1st December at Midday with experts to review and advise on how members need to prepare for the new points based system.

In a recent survey FIS asked members a number of key questions around the new points based system.  Concerns are amplified in the larger specialist employers, where 40% were currently experiencing shortages and 74% believe the new system will have a negative impact on their business.  Other interesting data revealed that respondents relied on labour gangs/agencies for an average 11% of the workforce, this again rises for the larger businesses.

FIS CEO, Iain McIlwee stated “The figures presented by Noble Francis at our AGM show that we have already seen an exodus of EU workers and this snap survey has not allayed our concern that we could be facing a real challenge in the New Year.  Clearly the difficulty is that these are unprecedented times and making sense of any data is difficult.  Will COVID restriction soften and ease travel concerns? How hard will Brexit be? What will the impact on currency be here and across Europe? How will this impact rates here and abroad and how attractive will that make UK versus other possible work locations?

We need a crystal ball to know for certain what people, who do not necessarily have deep roots in the UK, might decide to do.  But, when we need the UK to be primed to Build Build Build, the Government have taken an unnecessarily hard line on construction workers, which could come back to bite us by shortening labour supply, impacting programme and driving wage inflation.  More of a staged approach would be better for industry, particularly given the huge dent in training and recruitment activities we have seen in 2020 due to COVID.”

FIS is attending a roundtable on the 4th December with the Home Office and colleagues across construction.  We are still gathering information to feed in, if you wish to feed your views in, please contact iainmcilwee@thefis.org or phone 07792 959481 or you can still add you results to the final survey here.

 

FIS launch new Business Risk Management Tool

FIS launch new Business Risk Management Tool

The Finishes and Interiors Sector (FIS) has launched a new Business Risk Management Tool to support contractors and help them adopt a structured approach to understanding risk and reducing uncertainty.

Launched at the FIS Virtual AGM and Conference on the 24 November, the Business Risk Management Tool identifies over 120 common risk areas for contractors against the categories including Business Management, Contractual, Financial, Quality, H&S and Procurement,  providing a mechanism to score and rank risk and advice on mitigation and management.

A risk management matrix ranks risk in term of probability of an event occurring and the severity of the impact should the event occur. It can be used to identify and prioritise activity so that a contractor can then make informed business decisions and improve their resilience.

In her AGM speech, FIS President and Operations Director at Tapper Interiors, Helen Tapper stated: “I know what it’s like to not be able to afford expensive consultants or accountants to give me regulatory or financial advice. I know what it’s like to sometimes make decisions that I don’t feel qualified to make and bear the responsibility for that. Here’s an amazing statistic for you, nearly 60% of our contractor members turn over less than £5m and in fact only 17% turnover more than £10m and we never forget that statistic. You, like me, need the advice, technical guidance and moral support more than anyone and once again FIS membership pays dividends. It is these companies that we are targeting our new Business Risk Management Tool that is now available to download from our website.”

Commenting on the launch of the risk management tool, FIS CEO Iain McIlwee said: “We have learned in the past few years that basic risk management in construction needs to improve. Beyond the obvious, the worst thing for any business is getting smacked in the side of the head by something they didn’t see coming on a busy Tuesday afternoon. Our hope is that this risk management tool at least helps protect people from the unknown unknowns.  It is built on the collective wisdom of our community and a tried and tested framework. It isn’t a static thing and we can develop and evolve it as we help members front up to daily problems in the 21st Century.  We don’t have to learn from our mistakes, we can communicate and collaborate and learn as a community from each other – this way the sector gets better”.

The Risk Management Tool is available to download free for members of the FIS community here – FIS Business Risk Management Tool.

 

Changes to COVID Guidance on Showrooms in England

Changes to COVID Guidance on Showrooms in England

The Government has added further guidance on the closure of non‐essential businesses. The list now includes showrooms for products used in homes, including bathrooms, kitchens and glazing, which should be closed to the public, including where they are located as distinct sections within hardware stores and builders’ merchants. Delivery and click and collect services may continue to be offered. Each business should assess whether they are required to close having considered the regulations as well as the guidance, and Build UK has made the point that changing guidance midway through a lockdown is unhelpful and will have a major impact on businesses and their supply chains.

The updated guidance does not affect construction sites, manufacturers, storage and distribution facilities, or builders’ merchants without showrooms. Tradespeople may also continue to work in people’s homes following the the Safer Working guidance.

You can access the FIS COVID-19 hub here

Changes to COVID Guidance on Showrooms in England

Level 4 Lockdown in Scotland tightens for tradespeople entering homes

Following a discussion with Sharon Miller of Scottish Government, she has advised that Scottish Government has issued further guidance for Level 4 restrictions on construction work in homes. The guidance states:

 Tradespeople should only go into a house in a level 4 area to carry out or deliver essential work or services, for example:
to carry out utility (electricity, gas, water, telephone, broadband) safety checks, repairs, maintenance and installations

  • to carry out repairs and maintenance that would otherwise threaten the household’s health and safety
  • to deliver goods or shopping
  • to deliver, install or repair key household furniture and appliances such as washing machines, fridges and cookers
  • to support a home move, for example furniture removal

When working in someone’s house tradespeople should stay 2 metres apart from the people who live there, wear a face covering and follow good hand and respiratory hygiene.

Visit the FIS COVID-19 hub for the latest updates and information

Brexit: Urgent Message from the Secretary of State

Brexit: Urgent Message from the Secretary of State

The Secretary of State has written to a number of sectors with the top asks that businesses within those respective sectors should take, as part of their preparation for EU transition. These letters have been issued through Companies House. I attach the construction letter which has started to permeate through the sector.

The full text is provided below:

 Urgent message from the Business Secretary

Are you ready for new rules for business with the EU?

There is just over a month to go until the end of the transition period and there will be new rules to follow from 1 January 2021 onwards. As Business Secretary, I urge you to ACT NOW to avoid your business operations being interrupted when the transition period ends.

As a business in the construction sector, you can find out what you need to do by going to gov.uk/construction-2021. The top actions you can take now to prepare are:

  1. Check the new rules on importing and exporting goods between the EU and Great Britain from 1 January 2021. Different rules will apply in Northern Ireland.

Your business could face delays, disruption or administrative costs if you do not comply with new customs procedures from 1 January 2021.

  1. Use GOV.UK to identify changes affecting manufactured goods, such as new marking requirements or approvals needed, to ensure your business is ready to sell them in the UK and EU.

You may not be able to sell your goods in the UK and the EU from January 2021.

  1. If you are planning to recruit from overseas from 1 January 2021, you will need to register as a licensed visa sponsor.

You may not be able to legally hire people from outside the UK if you do not have a licence. New employees from outside the UK will also need to meet new job, salary and language requirements. Irish citizens and those eligible under the EU Settlement Scheme are not affected.

  1. If you are moving goods into, out of, or through Northern Ireland, check the latest guidance.

At the end of the transition period, the Northern Ireland Protocol comes into force. There will be special provisions which only apply in Northern Ireland so if you move goods into, out of, or through Northern Ireland make sure you check the latest guidance at: gov.uk/northern-ireland-trade

THE CHANGES CAN TAKE LONGER THAN YOU THINK, SO START TODAY

The Government is providing a range of support, including webinars to walk you through the changes. These are available to watch on demand at: gov.uk / transition-webinars. You should also check with your suppliers and customers that they are taking action.

These are challenging times, but the transition period is ending on 31 December 2020 and there will be NO EXTENSION . Unless you take action, there is a risk your business operations will be interrupted. The Government will be there to help you to take advantage of the many new opportunities that being an independent trading nation will bring.

Yours sincerely,

The Rt Hon Alok Sharma MP
Secretary of State for Business, Energy & Industrial Strategy

The transition website can be accessed here

You can access the FIS Brexit Toolkit here

Public Showrooms – Further Government Guidance

Public Showrooms – Further Government Guidance

The Government has added further guidance on the closure of non-essential businesses to include showrooms open to the public for products used in homes, including bathrooms, kitchens and glazing.

The updated guidance does not affect construction sites, manufacturers, storage & distribution facilities or builders merchants without showrooms.

We are fully aware that changing guidance midway through a lockdown, particularly after clarification was sought on this specific issue, is not helpful and have specifically requested that this does not happen in future.

The full guidance is here and key points from the guidance which may be useful are:

  • It is for each business to assess whether they are a business required to close having considered the guidance and Regulations.
  • Hardware stores and builders merchants (such as tools, timber, paint, plumbing and glass) can remain open. Where these stores contain showrooms in distinct sections, the showroom area should be closed to the public.
  • Showrooms for products used in homes, including bathrooms, kitchens and glazing should be closed to the public.
  • All businesses may continue to offer delivery and click and collect services (where items are pre-ordered and collected without entering the premises). People can also leave home to collect or return orders from these businesses.
  • Premises are not closed to staff or other authorised personnel needed to maintain them, secure them, or to prepare them to reopen.
  • Tradespersons who need to visit other people’s homes for their work can continue to do so and should follow the safer working guidance.

For all your COVID updates, visit the FIS COVID-19 Hub

Concerns over negative impact of new immigration system from 62.5% FIS members

Brexit: New Guidance Published on Bringing Goods into the UK

New guidance has been published on declarations required if you bring or receive goods into Great Britain or Northern Ireland after 31st December 2020.

Bringing goods into Great Britain

From Northern Ireland

For most goods no declarations will need to be made. Guidance on this will be published at a later date.

Check if you need to make a declaration when the goods leave Northern Ireland.

From the EU

Check if the goods are controlled.

For controlled goods a declaration will need to be made when the goods arrive.

If you use roll on roll off ports a declaration will need to be made before the goods arrive.

If the goods are not controlled find out the rules for declaring goods brought in from the EU from 1 January 2021.

From outside the EU

For all goods:

  • an entry summary (safety and security) declaration must be submitted before the goods arrive
  • a declaration will need to be made when the goods arrive

Bringing goods into Northern Ireland

From Great Britain

For all goods:

  • an entry summary (safety and security) declaration must be submitted before the goods arrive
  • a declaration will need to be made when the goods arrive

From the EU

Declarations are not needed for any goods.

From outside the EU

For all goods:

  • an entry summary (safety and security) declaration must be submitted before the goods arrive
  • a declaration will need to be made when the goods arrive

Moving goods through Great Britain and Northern Ireland

Common Transit may affect the declarations that need to be made.

Tariffs on goods

Guidance about any tariffs on goods moving between the UK and EU will be published at a later date.

This advice is taken from the Government website Brexit Transition

FIS is trying to consolidate and prioritise information via the FIS Brexit Hub.  To access the FIS Brexit Hub click here.

Grenfell Inquiry: The Products Under Scrutiny

Grenfell Inquiry: The Products Under Scrutiny

The latest phase of the Grenfell inquiry has seen the material supply and specification process under close scrutiny.  The suppliers faced claims of “clever marketing” being used to exploit confusion within the regulatory framework and mask product shortcomings to mislead specifications

The three main companies in focus were Arconic, which made the cladding panels, and Celotex and Kingspan, which made the insulation used.

A particularly concerning revelation raised was that Kingspan’s have now confirmed that tests, carried out in 2005, and again in 2014, were “not representative of the K15 product that had been sold”.  Kingspan have been heavily criticised through the Inquiry and subsequently through the National Media that, despite requests through the Inquiry made in 2019 to withdraw the test certification for the K15 product used in Grenfell, the company have only formally informed fire engineers in recent weeks that its test certification for the K15 product used at Grenfell should be withdrawn.

Arconic were also accused of having manipulated testing.  In this case the accusation was that they had tested a riveted panel, rather than the cassette panel used on Grenfell – to gain a higher ‘class B’ fire rating than the ‘class E’ the cassette was rated.  Internal emails from Celotex disclosed to the Inquiry also appeared to confirm that the product should not be used behind most cladding panels because it would burn.

Fingers of blame through the Inquiry and statements saw the manufacturers turning on one another with the intense competition between Kingspan and Celotex being used to drive the sales teams.  The product manager for Celotex was tasked to lead a rebrand and development of a Celotex insulation product range that would enable the firm to compete against Kingspan in the market for high-rise buildings was a 23 year old Business Studies Graduate.  Concerns were levelled at individuals about whether they understood the scope of the product with the Sales Manager at Celotex admitting at the time he did not realise that he did not appreciate “at the time” that the greater depth of insulation required for the Grenfell project moved outside the scope of the Celotex test evidence.

As a result of these findings, the Inquiry has been asked to give consideration to whether an urgent recommendation should be made to the government before the end of the inquiry’s second phase to review the premise of its building safety programme.

Full transcripts of the Grenfell Inquiry Hearings are available here. 

The excellent BBC Sounds Summaries of the Grenfell Inquiry are available here. 

Details of the FIS PPP (Product Process People) Quality Framework are available here

Concerns over negative impact of new immigration system from 62.5% FIS members

Important Brexit Updates for Manufacturers and Suppliers of Product

Urgent update for members using European Technical assessments

FIS is working with colleagues from across the sector, via the Construction Leadership Council (CLC) Product Standards and Regulatory Alignment Group, to formulate a clear position on matters pertaining to Brexit.  One area we have been discussing and has raised a particular concern has been CE marking using European Technical Assessments (ETA’s), specifically how they can be applied to products sold in the European Union when we exit the EU on January 1 2021.

Contrary to what the European Organisation for Technical Assessment (EOTA) has been stating for some time, the European Commission has ‘decreed’ that ETAs originating from UK TABs will not be valid in the EU after 31/12/20.  These ETAs are to be removed from the EOTA website on 1/1/21. This means, as it currently stands, manufacturers using Technical Assessment Bodies (TAB’s) in the UK will no longer be able to CE mark products when placing them on the market in the European Union and Northern Ireland from January 1 2021.

EOTA is raising their concerns about this approach with the Commission and at the same time the issue has been raised in the UK with the Department of Business Energy and Industrial Strategy (BEIS).   At this stage it is unlikely that we will get a clear response or any movement until there is clarity on the details of any deal with the EU .

It is important to note that in the reverse scenario there is a transitional year agreed i.e. manufacturers using TAB’s based in the European Union will be able to continue CE marking products and selling these into the UK, but will have to use a UK TAB in order to apply a UKCA mark by the end of December 2021.

If you are currently CE marking products based on an ETA, it is advised that you contact the TAB that you are currently working with to check that they are aware and have a process in place for supporting you in transitioning Assessments to an appropriate authority, if necessary.

We are still trying to understand if this will have an impact if you are currently placing your product on the UK market using a CE Mark.

HMRC urges traders to act now to prepare for 1 January 2021

With 53 days to go until the end of the transition period, HMRC has written to VAT-registered traders who trade with the EU, to encourage them to act now in order to avoid business disruption.  The Border Operating Model and tax rules will come into effect at the end of the transition period regardless of whether or not a Free Trade Agreement is negotiated.  

To continue trading with Europe from 1 January 2021, businesses should take some key actions: 

  • Appoint a specialist to deal with import and export declarations. This is important regardless of the amount or value of trade your business does with Europe. Most businesses use a third party such as a freight forwarder or fast parcel operator to deal with this, and do not do their customs declarations themselves. 
  • Check to see if you will be able to delay your declarations or duty payments. 
  • Register for the free-to-use Trader Support Service if you plan on moving goods into Northern Ireland from 1 January 2021. 
  • For more help and advice on preparing for the end of the transition period, please visit www.gov.uk/transition

Selling goods into the EU (including Ireland) post Brexit

From 16th July 2021 UK manufacturers will need to appoint an authorised representative base in the EU or EEA if selling products without using an importer or a fulfilment service provider e.g. if you sell online and ship directly to the end user.

This information is set out in Regulation (EU) 2019/1020 on market surveillance and compliance of products which amends the CPR and Regulation (EC) No 765/2008. Article 4(1) of Regulation (EU) 2019/1020 states that products subject to the legislation referred to in Article 4(5) can only be placed on the market if there is a person established within the Union who is responsible for the regulatory compliance tasks set out in Article 4(3).

Article 4(2) of the Regulation requires the authorised representative must have their name, registered trade name or trademark and contact details indicated on the product or its packaging, the parcel or accompanying documentation.

Below is an extract of Article 4 from Regulation (EU) 2019/1020. A copy of the full Regulation can be viewed here.

CHAPTER II

TASKS OF ECONOMIC OPERATORS

Article 4

Tasks of economic operators regarding products subject to certain Union harmonisation legislation

Notwithstanding any obligations set out in applicable Union harmonisation legislation, a product subject to legislation referred to in paragraph 5 may be placed on the market only if there is an economic operator established in the Union who is responsible for the tasks set out in paragraph 3 in respect of that product.

For the purposes of this Article, the economic operator referred to in paragraph 1 means any of the following:

(a) a manufacturer established in the Union;
(b) an importer, where the manufacturer is not established in the Union;
(c) an authorised representative who has a written mandate from the manufacturer designating the authorised representative to perform the tasks set out in paragraph 3 on the manufacturer’s behalf;
(d) a fulfilment service provider established in the Union with respect to the products it handles, where no other economic operator as mentioned in points (a), (b) and (c) is established in the Union.

Without prejudice to any obligations of economic operators under the applicable Union harmonisation legislation, the economic operator referred to in paragraph 1 shall perform the following tasks:

(a) if the Union harmonisation legislation applicable to the product provides for an EU declaration of conformity or declaration of performance and technical documentation, verifying that the EU declaration of conformity or declaration of performance and technical documentation have been drawn up, keeping the declaration of conformity or declaration of performance at the disposal of market surveillance authorities for the period required by that legislation and ensuring that the technical documentation can be made available to those authorities upon request;
(b) further to a reasoned request from a market surveillance authority, providing that authority with all information and documentation necessary to demonstrate the conformity of the product in a language which can be easily understood by that authority;
(c) when having reason to believe that a product in question presents a risk, informing the market surveillance authorities thereof;
(d) cooperating with the market surveillance authorities, including following a reasoned request making sure that the immediate, necessary, corrective action is taken to remedy any case of non-compliance with the requirements set out in Union harmonisation legislation applicable to the product in question, or, if that is not possible, to mitigate the risks presented by that product, when required to do so by the market surveillance authorities or on its own initiative, where the economic operator referred to in paragraph 1 considers or has reason to believe that the product in question presents a risk.

Without prejudice to the respective obligations of economic operators under the applicable Union harmonisation legislation, the name, registered trade name or registered trade mark, and contact details, including the postal address, of the economic operator referred to in paragraph 1 shall be indicated on the product or on its packaging, the parcel or an accompanying document.

This Article only applies in relation to products that are subject to Regulations (EU) No 305/2011 (34), (EU) 2016/425 (35)and (EU) 2016/426 (36) of the European Parliament and of the Council, and Directives 2000/14/EC (37), 2006/42/EC (38), 2009/48/EC (39), 2009/125/EC (40), 2011/65/EU (41), 2013/29/EU (42), 2013/53/EU (43), 2014/29/EU (44), 2014/30/EU (45), 2014/31/EU (46), 2014/32/EU (47), 2014/34/EU (48), 2014/35/EU (49), 2014/53/EU (50) and 2014/68/EU (51) of the European Parliament and of the Council.

Visit the FIS Brexit Toolkit for latest updates and guidance

Government extends Furlough to March and increases self-employed support

Government extends Furlough to March and increases self-employed support

Workers across the United Kingdom will benefit from increased support with a five-month extension of the furlough scheme into Spring 2021, the Chancellor announced today, 5 November.

The Coronavirus Job Retention Scheme (CJRS) will now run until the end of March with employees receiving 80% of their current salary for hours not worked.

Similarly, support for millions more workers through the Self-Employment Income Support Scheme (SEISS) will be increased, with the third grant covering November to January calculated at 80% of average trading profits, up to a maximum of £7,500.

The Chancellor of the Exchequer Rishi Sunak said:

I’ve always said I would do whatever it takes to protect jobs and livelihoods across the UK – and that has meant adapting our support as the path of the virus has changed.

It’s clear the economic effects are much longer lasting for businesses than the duration of any restrictions, which is why we have decided to go further with our support.

Extending furlough and increasing our support for the self-employed will protect millions of jobs and give people and businesses the certainty they need over what will be a difficult winter.

The Chancellor also announced today an increase in the upfront guarantee of funding for the devolved administrations from £14 billion to £16 billion. This uplift will continue to support workers, business and individuals in Scotland, Wales and Northern Ireland.

The furlough scheme was initially extended until 2 December. But the government is now going further so that support can be put in place for long enough to help businesses recover and get back on their feet – as well as giving them the certainty they need in coming months. Evidence from the first lockdown showed that the economic effects are much longer lasting for businesses than the duration of restrictions.

There are currently no employer contribution to wages for hours not worked. Employers will only be asked to cover National Insurance and employer pension contributions for hours not worked. For an average claim, this accounts for just 5% of total employment costs or £70 per employee per month. The CJRS extension will be reviewed in January to examine whether the economic circumstances are improving enough for employers to be asked to increase contributions.

Throughout the pandemic, the government has acted with speed to protect lives and safeguard jobs with an unprecedented £200 billion support package. The furlough scheme has protected over nine million jobs across the UK, and self-employed people have already received over £13 billion in support. This is in addition to billions of pounds in tax deferrals and grants for businesses.

On top of this, the government has announced:

  • cash grants of up to £3,000 per month for businesses which are closed worth more than £1 billion every month
  • £1.1 billion is being given to Local Authorities, distributed on the basis of £20 per head, for one-off payments to enable them to support businesses more broadly
  • plans to extend existing government-backed loan schemes and the Future Fund to the end of January, and an ability to top-up Bounce Back Loans
  • an extension to the mortgage payment holiday for homeowners
  • up to £500 million of funding for councils to support the local public health response.

The full speech from the Chancellor is available here.
Visit the FIS COVID-19 Hub here.

Furlough extended in light of new National Lockdown

Furlough extended in light of new National Lockdown

The PM has announced that, in line with the new National Lockdown announced on the 31st October, Furlough arrangements through the Coronavirus Job Retention Scheme will be extended “until December”.  Under the extended scheme, workers in any part of the UK who will be paid at least 80% of their salary up to £2,500 a month.  The flexibility of the current CJRS will be retained to allow employees to continue to work where they can.

Employers small or large, charitable or non-profit are eligible and because more businesses will need to close, they will now be asked to pay just National Insurance and Pensions contributions for their staff during the month of November – making this more generous than support currently on offer.

The proposed Job Support Scheme will not be introduced until after Coronavirus Job Retention Scheme ends.

Access the FIS COVID-19 Hub here.

National Lockdown, but Construction to carry on

National Lockdown, but Construction to carry on

The Prime Minister today, 31st October, announced that from Thursday the country would return to National Lockdown in England for a period of 4 weeks.  The lockdown rules announced are less strict than those announced earlier in the year, but will see restrictions in place on non-essential travel and parts of retail and many hospitality and leisure businesses being forced to close.  However, in his speech the Prime Minister confirmed that the Construction and Manufacturing Sector would not be expected to stop working.   He also announced that the Furlough scheme would be extended into December, the Government will once more put in the full 80% of salary (up to the maximum of £2,500), with the employer only covering pension and national insurance contributions..

Lockdown plans will be set before Parliament this week with the intention of commencement on Thursday.

Commenting on the lockdown FIS CEO, Iain McIlwee stated “This is clearly a blow to National morale and will impact the economic recovery that we had started to see, however, at least the Prime Minister name checked construction and manufacturing so we have clarity as a sector about how to proceed and will not return to the uncertainty and chaos that the industry experienced at the outset of the first lockdown.”

You can access resources in the FIS COVID-19 H&S Hub to support social distancing at work and the FIS COVID-19 Hub should you require letters of authorisation to support hotel stays or travel requirements related to construction activities.

A full transcript of the Prime Minister’s speech and accompanying slides are available here.

Devolved Nations

Scotland now has five COVID protection levels in place, ranging from ‘Level 0 ‐ Nearly Normal’ to ‘Level 4 ‐ Lockdown’, and you can check the level for an area by entering the postcode.  

Wales is under its own ‘firebreak’ lockdown until Monday 9 November 00:01am.  Under this “firebreak” that was implemented from Friday 23 October:

  • Construction and manufacturing can continue, provided employers take all reasonable measures to mitigate the spread of coronavirus. This includes builders’ merchants, which can remain open.
  • In a last minute change to the guidance, work in people’s homes can continue, as long as both the worker and household members have no symptoms of coronavirus. If a member of the household is self‐isolating, works are not recommended except to repair faults posing a direct safety risk.
  • All accommodation providers are required to close, unless they are providing ‘specific services’ at the request of the Welsh Government or a local authority. This includes providing emergency accommodation for key workers, which include those responsible for the construction or maintenance of public service buildings.

Northern Ireland In Northern Ireland, a tighter lockdown has been implemented for four weeks, increasing restrictions on travel and gatherings.  Again construction sites are allowed to continue to operate in compliance with social-distancing measures. Border counties in the south such as Donegal, Monaghan and Cavan have seen their level of restrictions increase, meaning only essential workers should go to work; construction has been deemed as ‘essential’ and will be allowed to continue.  These restrictions are in place until Friday 13 November.

Concerns over negative impact of new immigration system from 62.5% FIS members

Guidance on the Movement of Goods and Materials into and Between GB and NI Published

The Construction Leadership Council has published guidance on the movement of goods and materials into and between GB and NI in respect of the expiration of the transition period with the European Union at the end of the year.

The guidance offers an overview of the new customs regime, specific information concerning the trade of goods and materials between Great Britain and Northern Ireland as well as between Northern Ireland and the Republic of Ireland. The guide also includes an introduction to the new UK Global Tariff, touches on the interplay between movement of goods and materials and standards and alignment (which will be covered in a separate CLC publication), information on preparedness of the border as well information on shortage materials and other useful resources.

The guidance has been issued by the Movement of Goods and Materials Workstream (Product Availability Group) of the CLC BREXIT Working Group and comprises the third publication in a suite of business readiness advice that the group intends to publish ahead of 31 December 2020.

Access the guidance here.

Brexit:  Urgent message from the Business Secretary. It’s time to take action now

Brexit: Urgent message from the Business Secretary. It’s time to take action now

In just 71 days there will be guaranteed changes to doing business and there are many actions you can take now to prepare.

Regardless of whether we reach a trade agreement with the EU, from 1 January there will definitely be changes to:

  • the way businesses import and export goods
  • the process for hiring people from the EU
  • the way businesses provide services in EU markets

This week the government is launching a major public information campaign to help firms prepare and keep business moving. It has one simple message: Time is running out, so you need to act now.

Support is available, including sector-specific webinars to walk you through the changes. If you missed our webinars for the Services and Investment, Retail, Automotive, Materials and Metals, Electronics Machinery and Consumer Goods sectors, they are available to watch on demand now.

As Business Secretary I encourage you to:

  1. Check what actions you need to take by visiting uk/transition.
  2. Sign up for updates.
  3. Attend government webinars for additional support, sign up here.

Unless you take action, there is a risk your business operations will be interrupted. You should also check with your suppliers and customers that they are taking action.

I know these are challenging times, but the transition period is ending on 1 January and there will be no extension. It is vital your business prepares for our new relationship with the EU, outside of the single market and customs union. The Government will be there to support and help you to take advantage of the many new opportunities that being an independent trading nation will bring.

Yours sincerely,

Rt Hon Alok Sharma MP

Secretary of State for Business, Energy and Industrial Strategy

Yours sincerely,

Rt Hon Alok Sharma MP
Secretary of State for Business, Energy and Industrial Strategy

Additional Brexit Updates from the Department of Business Energy and Industrial Strategy

The updated Border Operating Model provides further detail on how the GB-EU border will work and the actions that traders, hauliers and passengers need to take. These steps will be needed regardless of whether we reach a trade agreement with the EU. The updated GB-EU Border Operating Model:

  • Maps out the intended locations of inland border infrastructure. The sites will provide the necessary additional capacity to carry out checks on freight.
  • Announces that passports will be required for entry into the UK from October 2021 as the Government phases out the use of EU, EEA and Swiss national identity cards as a valid travel document for entry to the UK.
  • Confirms that a Kent Access Permit will be mandatory for HGVs using the short strait channel crossings in Kent. The easy-to-use ‘Check an HGV’ service will allow hauliers to check if they have the correct customs documentation and obtain a Kent Access Permit. A preview demo of the Check and HGV service is available now.

Government launches plans to keep trade flowing after 1 January 2021: The government has announced a series of measures to help keep trade flowing by minimising the risk of disruption at the end of the transition period.

Exporters: sign up for the EU dual-use OGEL: Check now whether your business will need to register for the Open General Export Licence (OGEL), for export of dual-use items to EU member states from 1 January 2021. A full listing of sectors covered, and how to register for the licence with the Export Control Joint Unit is contained in this Notice to Exporters.

HMRC has written to VAT-registered businesses highlighting actions they need to take to prepare for new processes for moving goods between Great Britain and the EU from 1 January 2021.

 

Scotland, Wales and Northern Ireland – Lockdown tightens, but construction sites to continue

Scotland, Wales and Northern Ireland – Lockdown tightens, but construction sites to continue

Restrictions are being increased across the four nations to tackle the second wave of coronavirus, and First Minister Mark Drakeford has announced a national lockdown in Wales from Friday 23 October until Monday 9 November.

  • Construction and manufacturing can continue, provided employers take all reasonable measures to mitigate the spread of coronavirus. This includes builders’ merchants, which can remain open.
  • In a last minute change to the guidance, work in people’s homes can continue, as long as both the worker and household members have no symptoms of coronavirus. If a member of the household is self‐isolating, works are not recommended except to repair faults posing a direct safety risk.
  • All accommodation providers are required to close, unless they are providing ‘specific services’ at the request of the Welsh Government or a local authority. This includes providing emergency accommodation for key workers, which include those responsible for the construction or maintenance of public service buildings.

A concern for the sector is that in Wales Centres that have been hosting the H&S Tests will be closing.

In Northern Ireland, a tighter lockdown has been implemented for four weeks, increasing restrictions on travel and gatherings.  Again construction sites are allowed to continue to operate in compliance with social-distancing measures. Border counties in the south such as Donegal, Monaghan and Cavan have seen their level of restrictions increase, meaning only essential workers should go to work; construction has been deemed as ‘essential’ and will be allowed to continue.

In Scotland it was announced today (23rd October) that a 5 tier system is to be introduced. ‘Level 0’ is effectively the same level of protection as the Route Map Phase 3 measures Scotland reached in August and will act as a baseline, with four levels above that designed to apply increasing protection from the virus in areas according to prevalence, the risk to communities and the need to protect the NHS.  Levels 1, 2 and 3 will be broadly equivalent to the UK Government levels to offer some uniformity with measures south of the border. Levels will be reviewed on a regular basis.

Ongoing financial support is set out in the framework and will be available to businesses which are required to close or which can remain open but will be directly affected by restrictions. The Scottish Government will work with local authorities to ensure grants are made available quickly and efficiently.

In the coming days the Scottish Government will engage with local government, stakeholders, economic groups and other partners, prior to a final version of the strategic framework being debated in parliament next Tuesday (27 October).

With some detail to be confirmed in Scotland, at the time of writing, Construction work can continue across the UK (subject to complying with the necessary social distancing and COVID safety measures) – in the event of workers being stopped on journeys to and from sites, Build UK has produced an authorisation letter template for employers which may be helpful.

You can access the FIS COVID Hub for all the latest news here

 

Changes to COVID Guidance on Showrooms in England

Site Operating Procedures ‐ Version 6

The Site Operating Procedures have been updated to reflect recent changes in Government guidance. Whilst there are no significant changes to social distancing requirements on sites, the Construction Leadership Council (CLC) has taken the opportunity to streamline the Site Operating Procedures whilst maintaining the familiar format.

Changes to the Site Operating Procedures ‐ Version 6 include:

• Current requirements such as social distancing are referenced on page 1 making it easier to update in future
• The CLC statement on The Use of Face Coverings is included
• Updated guidance on shielding, self‐isolation, testing and what to do if a worker develops COVID‐19 symptoms or has to self‐isolate, including a link to Build UK’s flowchart
• Confirmation that canteens serving food must display an NHS QR Code
• The wording has been reviewed throughout to reflect the fact that social distancing is no longer exceptional, and that in some key areas Government has published more detailed guidance or updated terminology.

Cases of coronavirus are increasing across all four nations, and sites are urged to remind the workforce of the importance of social distancing outside of work, in order to protect themselves and others and help keep construction sites open.

You can access the updated Site Operating Procedures here

CLC Co-Chair Andy Mitchell’s Blog on the Industry Recovery Plan

CLC Co-Chair Andy Mitchell’s Blog on the Industry Recovery Plan

Last week was UK Construction Week, which is a great opportunity to step back and reflect on what has been achieved by the CLC in the past year.  One thing that is very clear to me, is that as a result of the Covid19 pandemic, the profile of both construction and the CLC has increased significantly.  I was particularly pleased to hear the Construction Minister, Nadhim Zahawi, highlighting examples of our work including the Talent Retention Scheme during his keynote speech at the conference.

The CLC has of course been transformed as a result of our response to Covid-19.  We have reformed our structure and organisation; we have increased the tempo of our work in response to the crisis and we are working hard to deliver an Industry Recovery Plan agreed jointly between government and industry last summer.

Yesterday we published a progress review of work on the Recovery Plan.  As co-chair, I think that it is useful for me to share my thoughts on the key milestones.  Before I do that, I also want to highlight why the plan is so important.  Firstly, it is a really positive reflection of a joined-up industry that is thinking collaboratively and strategically about our role in the Covid-19 recovery.  Secondly, its content reflects the effective relationship that we have developed with government over the past five years, supporting key objectives that are as diverse as net-zero carbon, skills, and productivity.  Thirdly, and most importantly, the plan is being implemented successfully in partnership, and it is making a difference.

Turning to the review itself, I find it a really useful summary of a plan that has many moving parts, all of which play a role in driving the wider recovery.  Most of the focus is rightly on our ‘reset’ activities that are supporting the industry to get back on track.  Many of these measures, including the Site Operating Procedures, the extension of Right to Buy and flexibility on site working hours are all pragmatic measures that have enabled firms in the sector to work as productively as possible in difficult circumstances.  Collaborative work on payment terms and contractual best practice also appears to have made a practical difference to the way in which money flows around the sector.  However, I am clear that the biggest achievement of the CLC during the reset phase has been the establishment of the Talent Retention Scheme.  As Covid-19 has an inevitable impact on both firms and the people working in our industry, I have a feeling that the TRS will prove to be a real asset as we look to retain our skills base.

Whilst our focus necessarily needs to be on the here and now, I am also really encouraged to see progress on the longer-term Reset and Re-invent phases of the plan which aim to support  the longer-term transformation of the sector.  Probably the highest profile initiative at the moment is the forthcoming Government Construction Playbook, which will support a stronger and more sustainable relationship between our sector and our government clients.   However, there is also great progress being made on initiatives associated with innovation in collaboration with the Construction Innovation Hub, and with building safety, net-zero carbon, and skills.

I am immensely proud of the work that has been achieved by my colleagues on the CLC over the past year.  Through a common purpose and tremendous collaboration, I believe that we have taken decisive steps towards our wider transformation to becoming more productive, efficient, sustainable, and safer sector.  By taking these steps we will be in a position to consistently deliver value to our clients.  I encourage you to read our status report and our plan and to reflect on how you can engage with our programme to not only embed our recovery, but to accelerate our transformation as well.

Blog from Andy Mitchell CBE, Co-Chair of the Construction Leadership Council
CEO Thames Tideway Tunnel

You can read the Building Winter Resilience – New Guidance from the CLC here

The Role of Building Control and Interiors Contractor takes the stand – Grenfell Update

The Role of Building Control and Interiors Contractor takes the stand – Grenfell Update

The main reminder from the Grenfell Inquiry last week was that Building Control should be used be a safety net, not a fundamental part of the design process.  We also learned more about potential communication failings between interior and exterior contractors.

It was frankly heart breaking to hear the testimony of John Hoban, the Building Control Officer for the Grenfell construction works.  The catalogue of issues points to clear systemic failings and, whilst the sign off process raises an eyebrow, you have to question how Building Control could ever be resourced to make up for shortfalls in the design process.  Too often in construction it has been “we’ve got a certificate, so it is compliant” not that “we engaged the supply chain early, overcame issues and made it easy for Building Control to do their job.  The need through the Building Safety Bill to establish clear STOP / GO gateways is very clear.

In other testimony, another problem emerging was an apparent lack of communication between trades leaving siloed and inconsistent decisions around vital interfaces.  Externally confusion over horizontal and vertical cavity closers and the role of intumescent seemed to point to a lack of knowledge from experienced fitters.  Vital cavity closers were fitted the wrong way round, horizontal closers where vertical should be and poor workmanship were all cited and contributed to the situation where intumescent strips could not provide the necessary protection.  A point made was that the speed at which these would have been covered up and a lack of allowance in the programme for adequate inspection made detailed inspection impossible.

The lack of joined up approach between external works was clear when Mark Dixon of SD Plastering took the stand.  SD Plastering were contracted to install the window trim inside the tower.  The package was under pressure to remove cost, material was switched from wood to PVC seemingly without consideration for the differening performances. Insulation Board was again added, in part to provide support related to the movement of the windows.  In selecting the material, whilst Rockwool was recommended, the material selected was not of limited combustibility.  Mark Dixon confirmed in testimony that he did not consider the fire performance, and assumed that strategy was in place to deal with external issues.

If you are not following the Inquiry, I do recommend setting aside 40 mins each week, to download the podcast from BBC Sounds, it without doubt creates pause for thought about how the culture and established processes in construction must change and context for the introduction of the new Building Safety Bill.

You can listen to the latest Grenfell Podcast on BBC Sounds here

You can access full transcripts and videos of the Inquiry here

Join the FIS / ASFP Debate on the incoming Building Safety Bill on the 8th October here.

Health and Safety Executive cracks down on dust

Health and Safety Executive cracks down on dust

Health and safety inspectors across Great Britain will be targeting construction firms to check that their health standards are up to scratch during a month-long inspection initiative, starting on Monday 5 October 2020.

This is the fourth health-focused initiative of its kind. As in previous years, inspections will focus on respiratory risks and occupational lung disease; looking at the measures businesses have in place to protect their workers’ lungs from the likes of asbestos, silica and wood dust. This is part of HSE’s longer term health and work strategy to improve health within the construction industry.

While the primary focus will be on health during this programme of inspections, if a HSE inspector identifies any other areas of concern, they will take the necessary enforcement action to deal with them. This will include making sure that businesses are doing all they can to protect their workers from the risk of coronavirus and make workplaces COVID-secure.

Inspectors will also be looking for evidence of employers and workers knowing the risks, planning their work and using the right controls. If necessary, they will use enforcement to make sure people are protected.

The construction initiative will be supported by HSE’s ‘Dustbuster’ campaign, aimed to influence employer behaviour by encouraging builders to download free guidance and advice, increasing knowledge and capability to protect workers’ health.

More than 3,500 builders die each year from cancers related to their work, with thousands more cases of ill-health and working days lost.

HSE’s chief inspector of construction, Sarah Jardine, said: “Around 100 times as many workers die from diseases caused or made worse by their work than are actually killed in construction accidents.

“Our inspection initiatives ensure that inspectors are able to speak to dutyholders and visit sites to look at the kind of action businesses in the construction industry are taking right now to protect their workers’ health, particularly when it comes to exposure to dust and damage to lungs.

“There are a few simple things that everyone can do to make sure they are protecting their health and their future. Be aware of the risks associated with activities you do every day, recognise the dangers of hazardous dust and consider how it can affect your health. We want businesses and their workers to think of the job from start to finish and avoid creating dust by working in different ways to keep dust down and wear the right mask and clothing.”

For more information click here

No help from the MAC in latest review of the shortage occupation list

No help from the MAC in latest review of the shortage occupation list

In a disappointing report from the Migration Advisory Committee, there appears to be little hope of seeing the Shortage Occupations List (used within the new  proposed Points Based Immigration System) of large parts of the construction industry being able to rely on any new immigration.  Only shortages in Bricklayers and Welders were deemed significant enough for medium-skill occupations to be included in the shortage occupation list ahead of the introduction of a points-based immigration system on 1 January 2021.

FIS has raised concerns with officials from The Department of Business Energy and Industrial Strategy (BEIS) that interior systems installers have not been included as an eligible occupation for the skilled worker route in the outline plans for a UK Points Based Immigration System post Brexit and continues to lobby through the Construction Leadership Council that urgent review is required.

A new points‐based immigration system which will apply to EU and non‐EU citizens and require those that want to work in the UK to meet a specific set of requirements. In addition to passing the relevant UK criminality checks, the job must have a salary of at least £20,480, and 50 points are ‘earned’ by meeting the following mandatory criteria:

  • The applicant must have an offer of a job from a licensed sponsor
  • The job must be at or above the minimum skill level: RQF3 level or equivalent (A level or equivalent qualification). Workers will not need to hold a formal qualification; it is the skill level of the job they will be doing which is important
  • The applicant must speak English to an acceptable standard.

The report notes in key areas that a high proportion of self-employed workers within key trades means that there would be limited benefits even if it were added to the SOL.

The MAC provides independent advice on which medium-skill occupations should be included in the shortage occupation lists ahead of the introduction of a points-based immigration system on 1 January 2021.

Commenting on the report FIS CEO, Iain McIlwee stated: “We are being hit by a double whammy here, the nature of construction means how we engage labour is not akin to other parts of the economy and this simply hasn’t been reflected in Government thinking, added to this, the incentives to push through to Level 3 qualifications have not been strong enough and they have withered on the vine in some key trades.  I also think that the impact of COVID adds to the problem, rather than alleviates as this report seems to suggest and if we are going to Build Build Build as the Prime Minister is suggesting, we need the bodies to do this.  I think few would disagree that we do need to invest more in training as a sector, but the timing here means that we are expecting things to be tight in the New Year, this will impact programme and potentially quality.  We are already getting reports from members that the availability of skilled workers in parts of the country is tight as workers from parts of Europe went home to ride out the pandemic and have decided not to return.  We are recommending all members as a matter of urgency talk to their workers about applying for settled and pre-settled status under the EU Settlement Scheme.”

You can read the full report here.

For information on the EU Settlement Scheme click here

FIS has prepared an overview paper based on concerns with the proposed UK Points Based Immigration System here.