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Sombre warning from the CLC: Claims and Disputes in Construction

Sombre warning from the CLC: Claims and Disputes in Construction

As the pandemic continues and a further lockdown in place, there remains a real concern that parties to construction contracts will become embroiled in costly and long-running disputes over the effects of COVID-19 on projects.  This is reflected in the latest report from the Construction Leadership Council (CLC).

The Contractual Practices Working Group of the CLC Business Models Workstream recently conducted a questionnaire and a series of interviews with a range of leading industry professionals in the field of construction claims and disputes and contracting parties in the supply chain. Many respondents represent a significant client base from within the construction supply chain and across many sub-sectors. The aim was to help improve the CLC’s understanding on the impact of COVID-19 on contracts and the possible nature and volume of potential claims and disputes now, and in the future.

Of concern is the increase in the number of claims under construction contracts being rejected because of COVID-19. Initial indications found that whilst parties may be inclined to settle an entitlement to additional time for completion, there is a reluctance to agree financial losses, costs and expenses (which is the greater source of contention).

It is too early to know what will happen with those rejected claims. However, there have been positive early signs of commercial settlement to avoid disputes, but at present lower value disputes were considered easier to pursue, leaving COVID-19 related disputes – being more complicated – to a later date in 2021.

The CLC continues to monitor the situation with respect to the potential for widespread disputes and urges all parties to act fairly and responsibly to preserve the competence, capability and capacity within industry to meet the challenges of 2021.

A snapshot of current thoughts and perceptions is published in the summary note here.

You can access the FIS COVID-19 Toolkit here

FIS Updates Guide to Taking on an Apprentice

FIS Updates Guide to Taking on an Apprentice

In light of latest changes and new support through the Government’s Plan for Jobs, FIS has updated the FIS Guide to Taking on an Apprentice.  This simple guide is designed to support businesses in taking that vital first step in taking on an apprentice.  It sets out to introduce companies to the raft of support that is available to them and to understand what their options are.

FIS Skills and Training Lead commented “Taking on an apprentice will ensure the succession of the current workforce.  This FIS guide is designed to help and support employers through the apprenticeship process, but the main message is that FIS are here to help at every stage.  With new restrictions on immigration and tightening in requirements to demonstrate competence in construction, it is more than ever vital that businesses in the finishes and interiors sector look to apprenticeships and traineeships to attack any emerging shortage of skilled workers.

There are encouraging signs with additional financial support from Government, growing interest from training providers in the new Interior Systems Installer Apprenticeship in England and activities like BuildBack and KickStart coming on stream to support recruitment and new entrant development.  But all of this will be in vain if companies and employers don’t rise to this challenge and invest in the home population.”

The guide is free to download from the FIS website here
More information on the CITB backed FIS BuildBack programme
More information on the Government backed FIS Kickstart programme
For all information on FIS Skills Support click here

 

Returning to the UK: New COVID new testing requirements

Returning to the UK: New COVID new testing requirements

With around 40% of workers in the Finishes and Interiors Sector migrating to the UK to work or for those who managed to escape for a Christmas holiday overseas, many will be set to return this week.  Here FIS provides a quick summary on advice for returning in a lockdown.

  • passengers will be subject to an immediate fine of £500 if they fail to comply with the new regulations on pre-departure testing
  • all passengers arriving from countries not on the government’s travel corridor list will still be required to self-isolate for 10 days, regardless of test result
  • passengers will still be required to fill in a passenger locator form and be subject to national lockdown restrictions
  • all international arrivals to England, including UK nationals, required to present a negative COVID-19 test taken up to 72 hours prior to departure (from Monday 18th January)

Completion of a Passenger Locator Form

Failing to complete the form is a criminal offence.  You must show proof of a completed passenger locator form at the UK border. You can complete it up to 48 hours before you enter the UK, and should do so before arrival.   To complete the form you need:

  • your passport details
  • your travel details, including times and dates
  • the address where you will stay in the UK (if applicable)
  • a booking reference number and the name of the test provider, if you’re using the Test to Release Scheme to find out if you can end self-isolation early

You can submit the Passenger Locator Form any time in the 48 hours before you arrive in the UK.  If you do not provide an accurate passenger locator form or breach self-isolation rules you can be fined (fines can be up to £10,000 with the potential of prosecution if you do not pay on time).

Self Isolation Requirements

If you’ve been somewhere that is not on the ‘travel corridors’ list in the 10 days before you arrive in England, you must self-isolate (for ten days) when you arrive.  You may, however, be able to end self-isolation early if you pay for a private coronavirus (COVID-19) test through the ‘Test to Release’ scheme.  Further guidance on self-isolation is available here for EnglandScotlandWales and Northern Ireland.

You can view the latest guidance and list of travel corridors for EnglandScotlandWales and Northern Ireland

Test to Release Scheme

The Test to Release for International Travel Scheme is for people who need to self-isolate on arrival in England.  Under the scheme you can choose to pay for a private COVID-19 test. If the result is negative, you can stop self-isolating.  The earliest you can take the test is 5 full days after you left a place not on the travel corridor list.

The scheme is voluntary and applies to those self-isolating in England only.

You can find out more about the Test to Release Scheme here.

Mandatory COVID-19 testing introduced to bolster border measures

From Monday 18th January International arrivals will be required to prove negative COVID-19 test result before departure for England.  Passengers arriving from all international destinations  (by boat, plane or train) will be required to present a negative COVID-19 test result taken up to 72 hours before departing for England to help protect against new strains of coronavirus circulating internationally.

The UK Border Force will conduct spot checks on arrival into England to ensure that passengers are fully compliant.  This will apply irrespective of whether a country is on the travel corridor list.  This will not alter the self-isolation requirements (see below).

There will be a limited number of exemptions, including for hauliers, children under 11, crews and for those who travelling from countries without the infrastructure available to deliver the tests.

Other information

Don’t forget to check with your airline to see if there are any particular requirements to support for safe travel and any protocol requirements for the airport that you intend to fly out of.

Remember from the 1st January 2021, the points based immigration system was implemented.  Overseas nationals working in the UK prior to the 1st January will need to apply for a right to remain via the UK settlement scheme and prospective new workers will be subjected to tighter immigration rules. 

Further details on the new points based immigration system are available here.

Full details on the revised rules for entering the UK are available here.

 You can access the FIS COVID-19 Hub here.

New Construction Minister Anne-Marie Trevelyan MP takes the helm in a reshuffle

New Construction Minister Anne-Marie Trevelyan MP takes the helm in a reshuffle

Anne-Marie Trevelyan MP has been appointed  Minister for Business, Energy and Clean Growth and her portfolio will include Construction, she replaces Kwasi Kwarteng MP who was standing in for Nadhim Zahawi MP (who is currently overseeing England’s vaccine roll-out).  Kwasi Kwarteng MP has moved to replace Alok Sharma MP as Secretary of State for Business, Energy and Industrial Strategy who has in turn moved on to the role of President of for COP 26, the 26th United Nations Climate Change Conference (scheduled to take place in Glasgow in November).

Anne-Marie Trevelyan is MP for Berwick-upon-Tweed, having held the seat since 2015, and  take responsibility for construction, but also has the wider remit for delivering the Government’s planned “green industrial revolution” – a plan to create and sustain 250,000 jobs in industries such as offshore wind farms, electric vehicles and public transport.

She is a chartered accountant by trade, Anne-Marie, during the 2015 Parliament, she sat on the House of Commons’ Public Accounts Committee where she focussed on ensuring taxpayers’ money is spent well in ways which are accountable to the public. In 2019, Anne-Marie was appointed Minister for Defence Procurement, and later Minister of State for the Armed Forces.

Until September 2020, Anne-Marie was Secretary of State for International Development, tasked with overseeing the UK’s contribution to international aid and development delivers the best results, transforming the lives of the world’s poorest and most vulnerable people, while promoting Britain’s economic and security interests. In November 2020 the Prime Minister appointed Anne-Marie the UK’s International Champion on Adaptation and Resilience for the COP26 Presidency. Her role is to engage the governments of the countries most affected by climate change and drive support from the international community and private sector.

Her other areas of interest and topics of campaigns include rural broadband, dualling the A1, continuing to bring investment to north Northumberland, and the armed forces covenant.

Duty to Report:  An employer must report an instance if 5 workers test positive

Duty to Report: An employer must report an instance if 5 workers test positive

Employers must review risk assessments to ensure they remain suitable and sufficient. Where COVID-19 is a risk in the workplace, it must form part of the risk assessment.  If there are 5 or more COVID-19 cases in 14 days in a workplace, employers should contact their local health protection team to report the suspected outbreak.

The heath protection team will:

  • undertake a risk assessment
  • provide public health advice
  • where necessary, establish a multi-agency incident management team to manage the outbreak

Find your local health protection team.

For a full update on NHS Test and Trace in the workplace click here
The Health and Safety Executive has published guidance to help you conduct a risk assessment.
Build UK has also updated its flowchart on the actions to take if a worker has COVID-19 or needs to self-isolate to reflect the latest Public Health England (PHE) guidance which requires employers to contact PHE if they identify five or more cases within 14 days.
To see the latest Construction Leadership Council Site Operating Procedures click here 

More information via the FIS COVID-19 Hub here.

Reassurance that Construction is to continue from the new Secretary of State

The new Business Secretary, Rt Hon Kwasi Kwarteng MP, has today written an open letter to the Construction Sector.  In the letter he has restated the Government position, which is that firms and tradespeople in the construction sector and its supply chain, including merchants, suppliers and product manufacturers, should continue to operate during this national lockdown.

The letter emphasises that where it is essential to travel or to stay in accommodation, whether to get to your work or for the purposes of carrying out your work, those in the industry are able to do so.

The new Secretary of State for Business (who replaces Alok Sharma who has been appointed President for COP 26, the 26th United Nations Climate Change Conference to be held in November in Glasgow) took to opportunity to thank you again to everyone operating in the UK construction sector for the hugely valued and critical contribution that is being made to our country.

A full copy of the letter from Rt Hon Kwasi Kwarteng is available here

Visit the FIS COVID-19 Hub for latest updates here