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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.

VAT deferral

VAT deferral

Companies that deferred VAT between 20 March and 30 June 2020 can either make payment in full by 31 March 2021 or opt in to the VAT deferral payment scheme when it launches shortly. The new scheme will allow companies to repay their VAT in up to 11 interest‐free monthly instalments until March 2022, rather than in one lump sum.

Vocational Qualification offer from North West Skills Academy

Vocational Qualification offer from North West Skills Academy

North West Skills Academy, an FIS Approved Training Provider Member, has secured funding to support FIS members that are looking to get the existing workforce qualified.

This is a unique opportunity to show investment in employees and beat the ‘starting gun’ that will see a rush of organisations and independent operatives looking to achieve qualifications when the Building Safety Bill is implemented.  Proof of competence in an occupation is going to become a ‘must have’ and a qualified workforce will prepare your organisation for future work.  In addition, for those registered with CITB the GET Code fund and FIS Training Group Supplementary fund makes these qualifications cost zero.

If you are interested, you can find out more by visiting https://www.nwskillsacademy.co.uk/commercial-application

100% Funded One Day Assessment NVQ Assessments

Experienced Worker Practical Assessment (EWPA)

  • NVQ Level 2 in Dry Lining Fixing
  • NVQ Level 2 in Dry Lining Finishing
  • NVQ Level 2 in Joinery
  • NVQ Level 2 in Wall & Floor Tiling
  • NVQ Level 2 in Painting & Decorating

Registration proces:

  • Register and pay North West Skills Academy
  • Provide work history (5 years) and witness testimonies
  • Attend and complete one day assessment
  • Claim CITB GET code
  • Present the invoice and claim FIS Training Group Supplementary Fund. This funding is limited and will not be available forever for details contact FIS.

Preston Assessment Centre, Units 3,4 & 33, Momentum Place, Preston, PR5 6EF

Stoke Assessment Centre, Unit 46, Marcus House, Longton, Stoke-on-Trent, ST3 5XA

For more details please call: 0161 442 4344 and press option 1 or email nvq@nwskills.academy.co.uk

Growing concerns for mental health

Growing concerns for mental health

We are receiving reports regarding the mental health of colleagues during this lockdown and are often asked to provide information to assist employer members, here is some of the information available.  The FIS Approved Training Provider members offer discounts, and a number of courses are free of charge.

For all training provided by FIS Approved Training Providers please see:  https://www.thefis.org/skills-hub/training-and-qualification/provisions/ then open the tabs at the top of the table.

Mental Health First Aid – HSS – https://www.hsstraining.com/search?search=Mental+health

eLearning Courses:

The FIS #BuildersBrew Health Campaign is still running, please see: https://www.thefis.org/about-us/builders-brew/

New eLearning course being provided by Independent Fire Inspections

New eLearning course being provided by Independent Fire Inspections

Independent Fire Inspections is launching its new online course, Preparing for IFE Level 3 Exam Passive Fire Protection, on 1 February 2021.  The course has been developed for eLearning, to provide training and the necessary preparation for those looking to sit their Level 2 and Level 3 Passive Fire Protection Exams with the Institute of Fire Engineers.  All materials and tests are online, leading to a final exam that can be carried out with the IFE directly in March or October each year.

The Institute of Fire Engineers has provided their recognition for this course and it has also been Accredited by the Institute of Fire Safety Managers.  What does this mean?  Two respected industry institutions have reviewed this training course and the quality of Independent Fire Inspections Ltd as a training provider, have deemed them acceptable and are willing to recommend them.

Independent Fire Inspections Ltd.’s Director, Ben Freeman has said “We are really pleased to be launching this comprehensive course to the industry, the first of its kind in E-Learning format, having evolved our current courses and added a lot more content, we are excited to begin delivering this online. All of our own inspectors and team members have been instrumental in pulling the course together along with industry experts.”

The course is being offered at an introductory discounted cost, please contact Claire.turner@fireinspections.co.uk for further information.

The course can be purchased directly via the website https://fireinspections.co.uk/product-category/e-learning-courses

Register now for CITB online employer events

Register now for CITB online employer events

The CITB online events in March and April will cover how they propose employers will be assessed to CITB Levy over the next three years.  In the past year they’ve been in regular contact with many employers and industry bodies.  The collection of the Levy Assessment in 2020 was temporarily suspended and the Levy rates for assessment in 2021 have been reduced by half.  At the same time, they have prioritised direct financial support for employers and apprentices.

Now, as they look at the best means to contribute to industry’s recovery in the months ahead, your view can shape the way forward.  At the events they’ll share how Levy registered employers can take part in consultation on the Levy Proposals 2022-25 and have their say on the proposed areas of support for construction businesses.

If you are a Levy registered employer and wish to join CITB please register here.