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FIS Supports launch of a major consultation on the future of construction in Scotland

by Iain McIlwee | 10 Jun, 2020 | Main News Feed

The CICV Forum has launched a major consultation among its members to discover what stakeholders want for the Scottish construction industry after COVID-19 – and how to achieve it.

With companies beginning a phased return to work, the wide-ranging questionnaire addresses multiple issues which have not gone away during the pandemic and suggests that the sector cannot realistically go back to the way it was.

The consultation is the latest in a series of initiatives from the Forum, which has been at the forefront of information dissemination to the sector throughout the COVID-19 crisis, and which has become for many enterprises the first port of call for clarity of advice.

Forum chair and SELECT Managing Director Alan Wilson, said: ”All too often we are told that a body or organisation is the ‘voice’ of a sector but to be the voice, first of all you must listen to what members are saying.

“Being the ‘ears of the industry’ is a concept often sadly forgotten and this piece of work aims do just that – listening to what the industry wants before suggesting options for change.”

Led by Consultant Len Bunton, the consultation was compiled with the input of four leading quantity surveying firms, as well as Ian Honeyman, Commercial Director of the Scottish Building Federation, and Ken Lewandowski, former local chairman of Clydesdale Bank.

Mr Bunton said that, for everyone involved in construction, the ultimate objective for the post-pandemic future must be an industry which is not only fair and transparent but allows contractors and the supply chain to operate profitable businesses.

He said: “The questions in the consultation will be put to the many trade and professional bodies in the Forum, as well as their members. The aim is to focus on the step changes which are necessary, the main problems and the potential solutions.

“We want to look at the endemic problems of low tendering, no margins and the lack of regard for competency and experience. Serious cashflow and payment issues, poor quality and health and safety probelems are also consistent concerns for the industry.

“We also need to consult with public and private sector clients who are the lifeblood of the industry, as their investment creates employment for the construction sector in Scotland.”

Mr Bunton added: “The consultation makes the point that the CICV Forum, which was quickly and efficiently assembled to deal with the ongoing effects of the shutdown, has demonstrated the desirability of disparate parties coming together to work for the mutual benefit of the sector.”

The Forum, made up of trade associations (including FIS), professional services bodies, companies and individuals, stepped into the fray immediately in March with advice on how to operate safely while carrying out emergency or essential work.

It has since been drawing on the collective expertise of its members to maintain a steady supply of information and practical advice to the sector as well as carrying out surveys, producing animations and posters, hosting webinars and speaking regularly with Government ministers.

The consultation was initially issued to members of the Forum only. If you would like to submit your thoughts about the future of the Scottish construction sector, please download the questionnaire here and send initially to iainmcilwee@thefis.org by 19 June to enable collation of responses.

Post Covid-19 Revival Funding

by Clair Mooney | 8 Jun, 2020 | Main News Feed

Launch of Edge Post Covid-19 Revival Fund – How to build back better

The Edge Foundation has announced the launch of the Edge Post Covid-19 Revival Fund. This is a one-off fund with up to £250,000 of grant funding available. Applications are welcomed for grants of between £10,000 and £50,000. The purpose of the fund is to address the educational challenges arising from the aftermath of the Covid-19 crisis. The fund will be a responsive programme of grant funding, open to institutions and not-for-profit organisations working in the educational sector to support the development of projects and initiatives to revive education and support the sector to build back better.

For full details visit https://www.edge.co.uk/projects/covid-revival-fund

Get Scotland Building – Unlocking the construction market with information

by Iain McIlwee | 5 Jun, 2020 | Main News Feed

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

To provide confidence that Phase 2 can begin evidence of the advance preparation of sites, in line with the new Site Operating Guidance and their own (or sector specific) procedures (see details in the FIS COVID-19 H&S Toolkit), it is critical now that industry share material through the Construction Leadership Forum in Scotland. Evidence shared with the Construction Leadership Forum will help them and, more importantly, government, gain confidence that the industry is preparing to start work safely.

Examples of the potential activities being sought, dependent upon the nature of the site, could include:

Installing new, or expanding existing, site welfare and toilet facilities
Installing hand washing/sanitiser stations
Alterations to form “one way” systems
Installation of Covid-19 signage
Marking 2m distancing on access routes throughout the site
Re-modelling office and meeting rooms for physical distancing
Cleaning of all site facilities and the workspace
“Road testing” all new systems prior to supply chain returning to site

The “evidence” that could include photographs, videos, written reports (examples of RAMS), site plan changes management plans, completed checklists and customer testimonials. The Construction Leadership Forum will be seeking sample evidence across a wide range of project types and situations.

Any information should be sent initially to CICV Forum member and FIS CEO iainmcilwee@thefie.org who will arrange for it to sent to the Construction Leadership Forum to collate and provide as evidence. Additionally, in the spirit of collaboration, if you are inclined to share more broadly as evidence of good practice through the Construction Leadership Forum members and/or included on the FIS Community H&S Best Practice Gallery please let us know when you submit the information.

Visit the FIS H&S COVID-19 Toolkit Here

Latest advice helps companies preparing to unfurlough staff

by Iain McIlwee | 5 Jun, 2020 | Main News Feed

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

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

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

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

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

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

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

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

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

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

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

by Iain McIlwee | 5 Jun, 2020 | Main News Feed

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

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

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

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

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

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

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

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

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

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

Cladding remediation fund opens

by Clair Mooney | 4 Jun, 2020 | Main News Feed

Building owners can now register their interest for the £1 billion Building Safety Fund for the remediation of unsafe non‐Aluminium Composite Material (ACM) cladding. The deadline for registering interest is 31 July 2020 and anyone that goes on to apply for funding would be expected to start construction work on site before 31 March 2021.

This fund, which is in addition to the £600 million fund for the remediation of ACM cladding, applies to residential buildings over 18 metres in both the private and social sectors and has been designed to address some of the financial obstacles to remediation being carried out quickly.

Information about the specific systems that are eligible for the fund can be found in Annex A to the fund prospectus. Funds will be allocated on a ‘first come, first served’ basis and there is no limit on the amount that individual building owners can apply for.