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Over 40% of construction companies in parts of the UK expecting “Significant Financial Difficulties”

Over 40% of construction companies in parts of the UK expecting “Significant Financial Difficulties”

Build UK has been working with Constructionline to measure the impact of coronavirus on the industry, and have published the results in a new infographic based on data submitted from almost 8,000 suppliers.

The infographic provides some encouraging news with respect to the impact of the CLC’s work on Site Operating Procedures with 99% of respondents making use of this document.  The numbers related to whether companies are expecting significant financial difficulties ahead are concerning with 29% of companies in England, 42% in Scotland, 32% in Wales and 47% in Northern Ireland . 

The Biggest challenges highlighted was continuity of work, however, the survey points also to the significant challenge the industry has in terms of productivity.  The three main things that would help suppliers are outstanding invoices to be paid (38%), a relaxation of project deadlines (28%), and shorter payment terms (24%).

Download the Constructionline-Build-UK Infographic here

Have your say on CITB announcement

Have your say on CITB announcement

Effectively CITB made three significant announcements today:

Your levy liability contribution is going to reduce

The CITB are cognisant of cash-flow challenges that industry faces, but by law they must collect the Levy.  The workaround is that they will continue the “Levy Holiday” until September (so you have nothing to pay until then).  In August you will get your full Levy Bill for 20/21 (remember the CITB tax year is April), but you will have a choice to pay up-front or over a 12 month period to August 2021.

Next year’s Levy bills (21/22) will be delayed and cut by 50%. This bill can also be paid in one go, or spread over 6 months, September 2021 – February 2022.

This means an overall Levy cut of 25% across two years. 

 It is anticipated that levy collection will then return to ‘normal’ rates and collection periods from March 2022, but this will be dependent on Government’s decisions around the Levy Order and feedback to CITB from the industry.

You will not get a consensus vote this year

In such an uncertain backdrop with so much in the air, CITB are responding to feedback that their focus needs to be on helping the industry meet the challenges posed by COVID.  The decision has therefore been taken to suspend the consensus process (that was due to run this summer), this has been agreed with the Department for Education.

To ensure CITB are in tune with industry needs they have been engaging with employers and industry groups to gather views on their plans going forward.  We are told this process will continue over the summer, when CITB will be seeking the industry’s views on a skills strategy for 2021-23 and the Levy required to fund it. New Levy Proposals will then be put to the Department for Education to enable it to present a new Levy Order to Parliament.

CITB have published a new Business Plan

This CITB Skills Stability Plan 2020-21 is effectively the CITB business plan for the current financial year (to March 2021). It outlines how, they intend to support construction with the skills it needs, including assistance to recover from the COVID-19 crisis. Emphasis is on reducing the financial call on employers, supporting apprenticeships and direct funding for employers’ skills needs through the Grants scheme and the Skills and Training Funds.  In the plan you can see the range financial commitments.  CITB is working on the assumption that the effect of the above levy cuts will see levy income fall by £166 million over the two-year period (this is a little over 40% of the roughly £400 million previously forecast).   Internal costs and expenditure have been reduced and these will be cut further.   CITB currently has around half of its employees furloughed.

Have your say

During the last consensus process FIS was one of the two organisations that did not support the levy proposals during the last round of consensus.  Without a formal consensus process, we need to ensure that CITB delivers for our sector and that your views are reflected in our ongoing discussions surrounding this with CITB, the Construction Leadership Council (CLC) and Government.

At this stage we would like to gather your initial views via this simple and short survey here.  The proposals will be looked at in more detail by the FIS Skills Board.  If you are interested in getting involved, find out more about the work of the FIS Skills Board here.

What next for the Construction Products Regulations?

What next for the Construction Products Regulations?

The Construction Products Regulation lays down EU-wide rules for marketing construction products.  The European Commission has opened a formal review to includes:

  • addressing the issues identified in the 2019 evaluation
  • improving how the single market for construction products functions.

The aim is to unlock the sector’s growth and jobs potential, promote environmental goals as part of the Green Deal and Circular Economy Action Plan, and possibly promote product safety.

While the UK is currently in the Transition Period which ends on 31st December 2020, we are obliged to follow EU legislation being passed. Even after the end of the Transition Period, the UK will more than likely continue to use the CPR as the governing legislation for the placing of construction products on the UK and EU markets.  It should also be remembered that this consultation is against a backdrop that MHCLG made clear its intention to review the current test and evidence methodology for construction products, possibly using a parallel system to the Construction Products Regulation, but independent and UK limited through the Construction Products Standards Committee.

As it stands, FIS will be responding to this consultation through the Construction Products Association and Construction Products Europe.

To support an informed consultation, The European Commission has issued invitations to two online Q&A sessions on:

A summary of concerns with the current iteration of the Construction Products Regulations are provided below:

Summary of the current CPR problem areas

This document provides an overview of the numerous problems surrounding the CPR and hopefully sheds some light on the issues concerned. It does not cover possible solutions at this stage.

  1. The current CPR acquis

By the CPR acquis we mean published and cited hENs, cited European Assessment Documents (EADs) and delegated and implemented acts published in the OJEU.

Within these documents, formal contradictions to the CPR exist and, therefore, they do not meet the current legal framework. According to the numerous European Court of Justice (ECJ) rulings e.g. James Elliott case, the European Commission is responsible for the correct content of the hENs.

The CPR acquis should be in line with the CPR itself (both the current Regulation and any future revision). The current CPR acquis must continue to be available as the basis for the European single market for construction products. Withdrawing most of the hENs is not viable as it would destroy the existing single market.

2. Backlog of blocked standards

According to the Commission, the vast majority of revised and newly developed hENs have been refused citation because they “formally contradict the CPR or they do not comply with the respective Mandate”. Behind this is the series of rulings by the ECJ making the Commission legally responsible for the content of hENs. This has brought to a standstill the technical progression of standard writing.

It is a necessity that the CPR acquis adapts to enable technical progression of hENs under the existing CPR and any future revision of the Regulation. It is imperative that the existing backlog of citations be successfully overcome ASAP, while still ensuring the hENS remain in line with the CPR.

  1. Adaptation to technical and regulatory progress

Although a hEN may be regarded as being exhaustive today, as national and European regulations adapt to meet market demands, gaps could well appear in the future. Thus, a procedure is required to adapt hENs to accommodate technical and regulatory progress without creating new barriers to trade. These changes to regulatory requirements need to be covered by harmonised technical specifications in a reasonably short time frame.

  1. Exhaustiveness and gaps in hENs

Member States have complained that the essential characteristics within a hEN do not always exist enabling compliance with national provisions. Current ECJ rulings prohibit Member States plugging these gaps with supplementary national provisions as this would be against the basic presumption of exhaustiveness.

Member States and the Commission expect hENs to contain all the relevant essential characteristics so that no gaps exist. Similarly, industry expects the hENs to have all the necessary information for the single market to function without any additional national requirements.

  1. Empowerment of the Commission for correcting errors in harmonised technical specifications.

CEN has been criticised by the Commission for submitting hENs for citation which do not meet the requirements of the respective Mandate or that they contradict the CPR. The Commission goes on to state that it does not have the power to correct such errors and, therefore, the backlog of standards for citation continues to rise.

It is imperative that hENs comply with their respective Mandate/Standardisation Request and the principles of the CPR. Practical procedures must be developed to correct these identified errors, however, the Commission wants to be able to act by itself and not depend on CEN.

While CEN/TCs do not deliberately submit standards that are not compliant with the mandate or the CPR, the remedy for this problem should entail complete and detailed Mandates/Standisation Requests as well as having binding criteria and corresponding guidance for the drafting of hENs.

  1. Product compliance with National requirements

The CE marking and DoP are not directly linked to the requirements in a certain Member State which gives rise to complaints from industry professionals about the difficulties they have to assess whether they can install a specific CE marked construction product in a building of a specific Member State.

Users of CE marked construction products expect clear and simple information enabling them to decide whether the declared performance complies with the general requirements for its use in a certain country.

With future CE/DoP information becoming available in a structured digital format it is possible to develop compliance tools to automatically compare this information with national requirements in different Member States.

  1. Implementation of BRCW7+

Basic requirements for construction works (BRCW) are defined in Annex I of the CPR. There are three BRCWs which contain life-cycle / environmental impact / sustainability relevant requirements: BRCWs 3, 6 and 7. Collectively these are known as BRCW7+.

There is an increasing need for the inclusion of life cycle information with harmonised technical specifications. However, BRCW7+ has not yet been implemented in Mandates/Standardisation Requests so harmonised life cycle product information remains non-harmonised.

The alignment of EN 15804 with the PEF methodology has not yet been taken by the Commission as the final decision about assessment according to EN 15804 Amendment 2 and its integration into the CPR or whether PEF construction products need to be developed for this purpose.

  1. Transitional arrangements

The Commission has estimated that it will take up to 10 years to revise the CPR and to adjust the CPR acquis. This is far too lengthy a period.

During this period it requires that technical progress continues and, therefore, it must be possible to revise/adapt hENs in the meantime.

The current backlog in the citation of hENS must be remedied ASAP so that they can be used under the current CPR.

  1. Market surveillance

As currently operated by National Authorities, this is not satisfactory. The resources needed are not available, consequently there is insufficient coordination between individual, national market surveillance authorities etc.

Market surveillance is required to work as an incentive to fulfil legal obligations and to act as a tool to protect the market from inadequate practices. The process needs to focus on the non-conformity of products rather than undertaking formal document checks.

  1. Avoidance of double regulation

There are still issues on the overlap between the CPR and other legislation which must be avoided as they cause the utmost confusion in the market place for manufacturers trying to comply with legislation.

  1. EOTA

The criteria for the activities of EOTA and the national Technical Assessment Bodies (TABs) are not clear and transparent enough. Currently, EOTA can produce an EAD without a corresponding Mandate from the Commission thus throwing doubt on whether the current activities of EOTA/TABs are still in accordance with the original intention.

A clear separation of the standardisation process and the work of EOTA is required and needs to consider both legal and technical issues.

  1. Information in DoP and CE marking

Duplication of information appearing in the DoP and the CE marking is an unnecessary obstacle which requires a remedy. With the future implementation of BRCW 3 and 7 the amount of information to be included will become impossible to include in the CE mark.

It must be possible to affix the legally required CE marking (including BRCW 3 and 7 information) to a construction product to ensure a link is provided to the relevant information in a digital format.

  1. Introduction of product inherent properties

Some in industry see the need to include product properties which are independent from the products intended use in addition to the current building related essential characteristics. These should not be linked to the performance of the product across the lifetime of the construction works.

These independent properties need to be assessed on a case by case basis and where possible integrated into Standardisation Requests when their declaration in the CPR framework is necessary to protect individuals and the environment.

To assist debate and start to gather consensus, Construction Products Europe have prepared a draft reply to the consultation, which can be viewed here if anyone members have differing views email joecilia@thefis.org and we will feed these into the CPA and consider a separate response accordingly. Please feed any information by the close of the first week of August 2020 to enable us to make appropriate representations.

DWP support for redundancies through its Rapid Response Service

DWP support for redundancies through its Rapid Response Service

If you have to make redundancies, Jobcentre Plus can give you and your employees support and advice through its Rapid Response Service.  Support could include:

  • helping people facing redundancy to write CVs and find jobs
  • providing general information about benefits
  • helping people to find the right training and learn new skills
  • helping with costs like travel to work expenses

Jobcentre Plus may also provide on-site support for large scale redundancies.

The Rapid Response Service provides local support and helps workers and employers by giving those facing redundancy access to the services of Jobcentre Plus and its partners before they lose their jobs. The support available through the Rapid Response Service is not just about Jobcentre Plus services – where appropriate other partners, such as the LSC, the devolved administrations, Local Authorities and Local Enterprise Partnerships will be involved to provide a package of support to those affected.

As the name suggests, early intervention is a priority objective, helping some workers into decent new jobs before they have lost their current ones. Through the RRS, Jobcentre Plus and its partners offer workers faced with redundancy a range of options to help them find alternative work. The service can be an important resource for union representatives in this situation.

There are two ways to access support;

Employer Help Website: To find out more about the help available visit the Employer Help site here

Employees via Jobhelp: Encourage staff to visit the Jobcentre Plus job help website. This provides a wide range of jobsearch help and advice, including information about working in critical sectors and the latest vacancies. It also includes information about benefit advice and how to claim, and redundancy support that Jobcentre Plus and partners can offer to employees facing redundancy or have been made redundant. Visit Job help here

Employees can also use the Jobcentre Plus ‘Find a job’ which is a free service (available  24 hours a day, 7 days a week). You can access the Jobcentre Find a Job website here.

In Scotland, redundancy support is provided through the Scottish Government’s Partnership Action for Continuing Employment (PACE) initiative. The PACE Redundancy Helpline 0800 917 8000 is operated by Skills Development Scotland or help is available at here.

In Wales, the service is delivered by the React Employers

Support and a specialist helpline is also available via the FIS Employment and Workforce Management Toolkit

 

Changes to CSCS Card Design

Changes to CSCS Card Design

Over recent years the CSCS card design has changed.

If you see a CSCS card that looks slightly different to what you expect, do not assume that it is fake. Instead, use one of these tools to check if the card is valid:

  • The free Go Smart app: All CSCS cards are Smart, they contain a chip which allows the card to be scanned electronically. Employers can read the information stored on the card using a smartphone or tablet device with the free Go Smart app installed.
  • The Go Smart online card checker.
  • The CITB card checker (for cards issued before 9th December 2019 only).
  • Access your CSCS Online account: If you already have an account, please login to view the status of your card.

There are three card designs in circulation:

CSCS cards issued before 9th December 2019

All cards issued before 9th December 2019 look like the image below.

CSCS cards issued between 9th December 2019 and end of May 2020

These cards have 2 key differences.

  1. The cardholder’s full name appears on the card, instead of just their initials and last name.
  2. The HS&E tested holofoil no longer appears on the card.

These changes are highlighted on the image below.

Cards issued since June 2020

A new card design was launched in June 2020.  The new design has the following design differences:

  1. The smart chip embedded in the card is no longer visible
  2. There is a contactless symbol next to the cardholder’s photograph

Check if you can claim back Statutory Sick Pay paid to employees due to coronavirus (COVID-19)

Check if you can claim back Statutory Sick Pay paid to employees due to coronavirus (COVID-19)

This scheme is for employers. You can claim back up to 2 weeks of SSP if:

  • you have already paid your employee’s sick pay (use the SSP calculator to work out how much to pay)
  • you’re claiming for an employee who’s eligible for sick pay due to coronavirus
  • you have a PAYE payroll scheme that was created and started on or before 28 February 2020
  • you had fewer than 250 employees on 28 February 2020 across all your PAYE payroll schemes

Employees do not have to give you a doctor’s fit note for you to make a claim. But you can ask them to give you either:

  • an isolation note from NHS 111 – if they are self-isolating and cannot work because of coronavirus (COVID-19)
  • the NHS or GP letter telling them to stay at home for at least 12 weeks because they’re at high risk of severe illness from coronavirus

The scheme covers all types of employment contracts, including:

  • full-time employees
  • part-time employees
  • employees on agency contracts
  • employees on flexible or zero-hour contracts
  • fixed term contracts (until the date their contract ends)

It has been confirmed that you can now claim for employees who are self-isolating because they’ve been notified by the NHS or public health bodies that they’ve come into contact with someone with coronavirus.

Find out how to make your claim here.

For detailed guidance from FIS on what to do if an employee reports sick or is required to self isolate click here