by Oscar Venus | Sep 4, 2023 | Main News Feed
Register for the Supply Chain Sustainability ‘Progressing Sustainable Procurement: Driving Sustainable Supply Chains and Businesses’ Virtual Conference.
This event will take place in just one week, on Thursday 7th September at 10:00-12:00 via Zoom.
By attending this session, you will have the chance to gain valuable insights into sustainable procurement strategies and processes. You will receive a first look at Action Sustainability’s ‘Sustainable Procurement Progression Report 2023’ and learn from cross-industry leaders in sustainable procurement about their experiences, the challenges they have faced and how they have overcome them. Additionally, you will have the opportunity to deep dive into three specific sectors – construction, utilities, and train operating companies – to benchmark against and learn from ISO 20400 evaluation insights.
Their Q&A session will give you the chance to have your questions answered by industry experts. This is a unique opportunity to learn from the best in the industry, so we encourage you to register now. Places are limited, with less than 100 spaces left, so don’t delay and register for free using the link provided. We also invite you to share the registration link with your colleagues and supply chain.
Learn more about the event and register here
by Oscar Venus | Aug 17, 2023 | Contractual and Legal, Main News Feed
The last few months have been hectic working for several construction organisations who are members of the various bodies that make up CICV.
I have seen an alarming increase in the number of organisations that are suffering from payment and cash flow issues, and these are probably putting a strain on the finances of the business and more strain on the mental health of those who run the businesses. What appears to be a regular feature is that organisations don’t respond to payment applications, don’t respond to emails requesting information and just put up a wall of silence, and then they start to reduce payment applications with some spurious excuses, and contracting organisations go round and round not knowing where they are going.
By inventing all sorts of excuses one can keep a subcontractor at arm’s length for weeks if not months, providing prevaricating excuses for not paying.
Members can see the full blog by clicking the button below
by Clair Mooney | Aug 8, 2023 | Main News Feed
This time of year brings open consultations on the changes the government may introduce next year. The next big thing coming in our direction from the Treasury is a raft of new proposals relating to the use of umbrella companies. If you use umbrella companies, we recommend having a look at the consultation document and adding your voice to the discussion.The consultation is open until 29 August.
In other tax news:
- HMRC has confirmed that the CIS helpline remains open
- There is an online guide to check if you can correct a mistake in your VAT return
- National Insurance numbers can now be saved to and downloaded from the iPhone Apple Wallet
- Ensure you have the correct classification for diesel cars
Lastly on 18 July, the government released draft legislation for next year’s Finance Bill and introduced consultations on future tax policy changes. These inlcude:
- Companies: Consultation on merging R&D Tax Reliefs into a single scheme.
- Plastic Packaging Tax: consultation on using a mass balance approach to determine the amount of chemically recycled plastic in packaging.
Full details on all of the above, plus more is available exclusively to FIS members, here.
by Iain McIlwee | Aug 1, 2023 | Main News Feed
It has been confirmed that the next edition of JCT (JCT 2024) is anticipated to be issued in the early part of next year. The final decision on the release date will be determined by when the secondary legislation necessary to implement many of the provisions of the Building Safety Act 2022 has been published (expected to be finalised by October 2023).
What are the key changes:
Modernising and streamlining: changes will include the adoption of gender-neutral language, provision for execution by electronic signature and the facility for notices to be sent electronically.
Fluctuation provisions: Price uncertainty is set to continue and the JCT has launched a new fluctuations hub to offer guidance on its Fluctuation Options and also plans to move the fluctuation provisions to an online document to increase prominence and accessibility. Currently, fluctuation Options B & C are available online while Option A features in the JCT contracts.
Extensions of Time: There will be new relevant events to cover epidemics, updates to how ‘statutory powers’ are dealt with and ‘Statutory Undertakers’ will be redefined to ‘Statutory Providers’. In addition, the period of time for the Employer to assess an interim extension of time will be reduced from 12 weeks to 8 weeks from receipt of the Contractor’s particulars. The relevant event dealing with antiquities will be extended to deal with UXB’s, contamination and asbestos.
Loss and expense: The Contract Particulars will provide for parties to include optional additional grounds for the contractor to claim loss and expense. These include epidemics and the exercise of statutory powers by the UK Government which directly affects the works. The relevant matter dealing with antiquities will be extended to deal with UXB’s, contamination and asbestos.
Liquidated damages: The JCT is also making amendments to reflect the Supreme Court’s decision in Triple Point Technology Inc (Respondent) v PTT Public Company Ltd (Appellant) (2021). The decision restores the orthodox position that liquidated damages clauses apply up to termination of a contract, but not thereafter. Clear wording must be used if parties want to agree a different approach. The planned updates to the JCT will provide that where works are not complete at termination, LDs can be levied up to termination and only general damages for delay can be claimed thereafter.
Resolving disputes, arbitration and adjudication: Parties will be able to choose a nominating body or appointer of their choice, as opposed to the original short list. However, it is anticipated that the particulars will still include a list of bodies, as the AICA is being removed (due to it now being defunct). The notification and negotiation of disputes, set out at Supplemental Provision 10, will no longer be an optional provision. Subject to the parties right to refer a dispute to adjudication, this provision deals with the avoidance or early resolution of disputes or differences by requiring each party to promptly notify the other of a matter that is likely to give rise to a dispute or difference. It also requires senior executives to meet “as soon as practicable, for direct, good faith negotiations to resolve the matter”.
Allocation of risk: There will be a new provision added to the contract to deal with unexploded ordnance, contaminated materials and asbestos.
Legislative changes: There will be updates to reflect recent legislation including the Building Safety Act and its secondary legislation (once this has been finalised) and the two new insolvency grounds that were introduced under the Corporate Insolvency and Governance Act 2020 will be added.
Construction Act: There will be revisions to termination accounting provisions to reflect the requirements of the Construction Act, in particular a due date for the final payment after termination will be added.
Future proofing: The contract has been drafted with consideration to the Construction Playbook, sustainable development, collaborative working and environmental considerations.
In addition, a new set of contracts will be added to the suite. The Target Cost Contract, the Target Cost Sub-Contract and the Target Cost guide will be published alongside the updated suite.
While the final amendments are not released yet, the above is understood to be a good guide for the changes that are being implemented.
Commenting on the changes, FIS CEO Iain McIlwee stated:
“Changes to JCT are long overdue, there has been a lot of water under the bridge since 2016! But, whilst the changes are welcome, recent research by Reading University points to the fact that the very concept of a standard form of contract is to all extent and purposes almost dead.
It is vital that these changes are heralded with some real leadership making it clear that the contracts are designed to be used in an unamended format. Where amends are deemed necessary the users should be cautioned against “risk dumping” and the contracts should be deemed invalid unless changes are clearly marked up in the body of the contract instead of included in an unwieldy schedule of amends.
The new Building Safety Regulations emphasise that risk should be dealt with by the person most able to manage it – there is a huge opportunity for JCT to get behind this principle and champion the import of standard and unamended contracts.”
This summary of the changes is based on content in the latest edition of JCT News
by Oscar Venus | Jul 27, 2023 | Main News Feed
The Building Safety Regulator (BSR) is set to oversee the building control approval process for all higher-risk buildings from 1st October 2023. In order to ensure the ongoing safety of residents, the BSR will also manage the safety of these buildings while they are occupied. To provide a clear overview of the new building control regime and the BSR’s role as the Building Control Authority, a free one-hour lunchtime webinar will be hosted on Wednesday 9th August from 12pm-1pm. The webinar will be hosted by Colin Blatchford-Brown, Operational Policy lead for Gateways and Building Control, and Jenny Hagan, Senior Policy Advisor for Gateways and Building Control.
The engaging and informative webinar is open to all those interested in the new building control regime, including designers, architects, local planning and building control authorities, building control professionals, private and public sector contractors, clients, principal accountable persons/accountable persons, developers, and industry organisations. Attendees will gain a deeper understanding of the new building control regime, the importance of duty holder roles, and the gateways. The webinar will also provide the opportunity to ask questions to the experts and receive a post-event copy of the presentation and a recording of the webinar.
Register for the webinar here
by Clair Mooney | Jul 24, 2023 | Main News Feed
Construction output is forecast to fall by 7.0% in 2023, primarily due to sharp falls in activity in the two largest construction sectors, private new housing and private housing repair, maintenance and improvement (rm&i). Output in the third largest construction sector, infrastructure, has also been revised down again due to government delays to roads and rail projects that will only add further cost to the projects when they return. Construction output is forecast to increase in 2024, by 0.7%, as wider economic growth boosts demand for both new build housing and rm&i activity.
FIS Members can download their copy of the CPA’s Summer Forecast here.
