CLC submits industry-wide response ahead of the Budget

CLC submits industry-wide response ahead of the Budget

The Construction Leadership Council has submitted an industry wide response ahead the Chancellor’s Budget Statement on 3 March 2021.

The submission outlined how the construction sector could most effectively support the UK’s recovery in line with the Government’s key policy priorities to achieve Net Zero, Building Safety, Levelling Up, stimulating economic activity and protecting jobs.

We focussed on a small number of key interventions to drive immediate economic growth and market confidence. These included: Committing to a National Retrofit Strategy; Offering Incentives for the commercial property sector; Expanding the Building Safety Fund; Making the Infrastructure Bank an effective vehicle for regeneration; Securing Local authority funding; Extending the Stamp Duty Holiday and Duty review; Withdrawing Reverse Charge VAT; and Extending employer apprenticeship incentives and Apprenticeship Levy flexibility.

Read the letter here.

Government plans to press ahead with Domestic Reverse Charge

Government plans to press ahead with Domestic Reverse Charge

In a letter received today, the Government has set out that it remains committed to introducing the VAT domestic reverse charge for building and construction on the  1 March 2021.  The letter from the Rt Hon Jesse Norman MP, Financial Secretary to the Treasury states:

“The Government is determined to tackle VAT fraud in all its forms, and therefore remains committed to introducing the VAT domestic reverse charge for building and construction services on 1 March 2021. As you know, the reverse charge aims to remove the ability of fraudulent operators to collect VAT and then disappear without remitting the VAT to HMRC. The Government still believes it is necessary to bring in the reverse charge now to combat criminal attacks on the VAT system; another delay or cancellation at this stage would create further uncertainty and cost to businesses which have already spent a great deal of time preparing for the change.
The Government acknowledged in its response to the industry.”

FIS President Helen Tapper summed up the concerns from industry well in here recent statement as part of the #StopReverseVAT campaign:

“We are a £6m specialist fit-out business who works both for main contractors and directly for clients.  Setting aside admin, we anticipate the overall cash cost to the business will be around £175k, a scary number, but for some working exclusively as a sub-contractor, the impact will be far, far worse.  After the most harrowing 12 months we have known in our 35 year history where we have lost work, lost money on work, continue to get drawn into difficult contractual issues but have done all we can to carry on and do our bit, this will be a very difficult pill and not one all will be able to swallow.”

FIS CEO Iain McIlwee responded to the letter: “I am frankly appalled by the small thinking from Government, it just seems to me that good hard working businesses, that have carried the economy through the recent pandemic, risking health and having to draw on all reserves of resilience (not to mention cash reserves!) are being hammered because of HMRC’s inability to get on top of alleged VAT fraud.  The letter points to Government advice on reducing cashflow impacts, but it will not be enough for many – the numbers are eye watering.  It made sense to delay it last year, but there has been no meaningful review and the conditions in the market are wholly different to when the original consultation took place, not least because of the damage of the pandemic and Brexit slamming the door on immigration (which has in part addressed the issue of fraudulent operators to disappear).  If it made sense to delay last year, the case is even stronger, Government want us to build build build, but with what?  Construction relies on cash in the supply chain and they are taking vital cash out of the system and in the process will crippling businesses and constraining others from investing in innovation and growth.”

 

Technology Impact on the Means and Methods of Wall and Ceiling Construction

Technology Impact on the Means and Methods of Wall and Ceiling Construction

This excellent report (published by the Foundation of the Wall and Ceiling Industry and made available to FIS Members via the Association of the Wall and Ceiling Industry -AWCI) explores how construction technology is impacting the means and methods of wall and ceiling construction and draws on original interviews with industry thought leaders working in this sector in the US to provide insight into how technology is transforming the sector.

Background

The need for wall and ceiling contractors to work more productively and safely in today’s labour-constrained construction environment is driving investment in
project management software, tracking and tagging systems and prefabrication machinery at wall and ceiling firms.

“The big drivers for me are productivity, quality and safety,” says Stephen Eckstrom, president, California Drywall Company. “I’m going to adopt more technology
if these [drivers] improve.”

Technology Investment Is Increasing

While many in the commercial construction industry have been slow to adapt to new technologies, according to various sources, technology investment is increasingly being seen as important.

“[Technology] will ensure that your company is positioned to offer new levels of service that may set you apart from competitors,” says Nancy Brinkerhoff, president and CEO of Ironwood Commercial Builders in Northern California and 2019–2020 president of AWCI.

“Companies not on board the automation revolution will be left behind,” says S.S. Saucerman in the AWCI’s Construction Dimensions article, “The Weakest Link? Us.”

How Is Technology Defined?

Technology is “the science or study of the practical or industrial arts,” says Webster’s New World College Dictionary. This definition1 suits the objective of this paper,
which is to discuss “practical” applications that affect the wall and ceiling industry’s workflows. Technology includes software, tools, collaboration methods, ways to
gather and analyse data and more.

What Is Meant by Means and Methods of Construction?

The means and methods of construction is a central principle of construction contracts in which the contractor controls the processes and materials used to build
structures falling within his or her scope of work. Often, contractors must provide their own incidental design input, value engineering or minor plan modifications to resolve on-the-spot difficulties during construction. The goal of contract fulfilment is to complete a project efficiently, profitably and within specifications. This is where investment in technology can have an impact.

A full copy can be downloaded here (FIS Members Only)

Foundation of the Wall and Ceiling Industry

FIS is grateful to the Association of the Wall and Ceiling Industry (AWCI), our sister organisation in the US who has given us permission to share this report with our membership. It is published by The Foundation of the Wall and Ceiling Industry.  The Foundation’s mission is to be an active, unbiased source of information and education to support the wall and ceiling industry.

Build UK members improve payment terms again

Build UK members improve payment terms again

The latest results published under the Duty to Report on Payment Practices and Performance show that the payment performance of Build UK members has continued to improve over the last six months despite the significant challenges presented by the coronavirus pandemic. Contractor members are now reporting an average of 35 days to pay invoices, down from 36 days last July and 45 days when the Build UK table was first published in July 2018. On average, they now pay 93% of invoices within 60 days, up from 82% two years ago, and 79% of their invoices are paid within terms, compared to 61% in 2018.

The Build UK table features more than 100 of the industry’s largest companies, including contractors, clients and housebuilders, to provide a comprehensive picture of payment practices across the construction industry.

Virtual CSCS Cards

Virtual CSCS Cards

CSCS has launched virtual CSCS cards providing instant access to an individual’s training and qualification records. Virtual cards carry all the same information as physical cards but are stored within the My CSCS app, which is free to download via Google Play and Apple Store.

 Virtual cards benefit the card holder and their employer by providing both with instant access to the individual’s training and qualification records and eliminating the need to carry a physical card on site.

Alan O’Neile, Head of Communications at CSCS said: “This is a game changer for CSCS cards. The technology will improve safety and efficiency on construction sites by making it easier for the employer to check that workers hold the appropriate qualifications and training for the job they do on site.”

The virtual card is generated automatically and can be downloaded to the My CSCS app as soon as an application is approved, and payment is taken.  The virtual card can then be used immediately on site before the traditional plastic card has arrived in the post.  CSCS is keen to highlight to employers that virtual cards are safe and secure but, just like the traditional plastic card, they should always be electronically checked using the free Go Smart software.  This is to ensure the card is valid and to confirm that the holder has the appropriate training and qualifications for the job they do on site.

 

Alan O’Neile continued: “As well as storing the virtual card the app has many other benefits. Card holders can view the status of their applications, manage their personal details and get in touch with our Customer Service team via the app.”

The My CSCS app is available 24 hours a day, 7 days a week, providing card holders with access to the information they need when they need it.

Visit www.cscs.uk.com/mycscs to find out more about virtual cards and the My CSCS app

Covid19 testing: expansion to firms with over 50 employees

Covid19 testing: expansion to firms with over 50 employees

The Department of Health & Social Care (DHSC) is widening the scope of the support they provide for asymptomatic Lateral Flow Device testing to include businesses in construction and other priority sectors with over 50 employees.

If FIS emmbers would like to be part of DHSC’s testing scheme then please attend one of the webinars noted below, and email Covid19.WorkforceTesting@defra.gov.uk or employee.testing@beis.gov.uk. You should outline interest in commencing LFD testing in your workplace, and request an invite to a follow up LFD Operational Overview Session.

BEIS has advised that you should state if you have more than one site that would like to join the scheme. If you sign up to the scheme please notify Build UK via emai on Communications@BuildUK.org

Smaller sites and businesses can access employee testing via their Local Authority’s Community Testing scheme. For more details on this please email communitytesting.centralops@dhsc.gov.uk.

An ‘Introduction to Mass Testing’ webinar – Monday 1 February – Friday 5 February between 14:00 – 14:45
(The link to join is below, and is the same for each meeting)
These introductory overview sessions will last 45 minutes, provide an overview of testing and answer any initial questions you may have. They will cover:

  • High level overview of Mass Testing for surveillance and Daily Contact Testing to provide understanding of the processes and what is required
  • Lateral Flow Technology and reason for using
  • Frequency of testing
  • Resources required
  • Test Site requirement

DHSC Introductory webinar – Monday 1 February – Friday 5 Feb, 14:00-14:45 – Click here to join the meeting

Join with a video conferencing device
892762625@t.plcm.vc
Video Conference ID: 125 385 330 9
Alternate VTC dialing instructions

Or call in (audio only)
+44 20 3443 8728,,273694178# United Kingdom, London
Phone Conference ID: 273 694 178#
Find a local number | Reset PIN

If you have any further questions, please contact Employee.Testing@beis.gov.uk