the guild of builders and contractors

Charges for Breach of Health & Safety Regulations

31 January 2012 by Administrator

The Health and Safety Executive (HSE) have published more information on the charges that they will make for their time investigating and dealing with breaches in Health and Safety Regulations including the Construction (Design and Management) Regulations 2007.

The headline rate is £124 per hour spent by an HSE Inspector when they find something non-compliant. This "fee for intervention" will be applied when there is a "material breach" which is, "when in the opinion of the HSE Inspector, there has been a contravention of health and safety law that requires written notification (e-mail, instant visit report, letter, enforcement notice or prosecution) of the contravention to the duty holder".

The Construction (Design and Management) Regulations 2007 define duty holders as: Clients (except domestic clients), Designers, CDM Co-ordinators, Principal Contractors and Contractors. Designers include: architects, structural and civil engineers, mechanical services engineers, landscape architects, interior designers and temporary works designers.

The HSE have provided details of the potential average costs for intervention activity. The actual intervention costs will depend on the particular circumstances and the complexity of the investigation that is required to follow all reasonable lines of enquiry.

The following are the HSE's estimated average costs to be recovered:

• An inspection which results in a letter - approximately £750.
• An inspection which results in an Enforcement Notice - approximately £1,500.
• Investigations - ranging from approximately £750 through to several thousands of pounds to, in extreme cases, tens of thousands of pounds.

Although the following is not a complete or exhaustive list of potential material breaches of the Construction (Design and Management) Regulations 2007 that might involve HSE action and charges they are indicative of the type that might be investigated following a site visit: 

• Failure to plan, manage and monitor construction work in a way which ensures that it is carried out without risks to health and safety.
• Failure to notify the Client of his duties under the Construction (Design and Management) Regulations 2007 before commencing work.
• Failure to provide every worker carrying out construction work under his control with adequate information and training.
• Failure to provide adequate welfare facilities on site for the full duration of the construction phase in accordance with Schedule 2 of The Construction (Design and Management) Regulations 2007.
• Failure to comply with the Work at Height Regulations 2005.
• Failure to comply with the Lifting Operations and Lifting Equipment Regulations 1998.

We recommend that all builders and contractors take particular care in managing their construction projects and ensure that they and their site managers and supervisory staff are conversant with all Health and Safety Regulations. All persons responsible for managing a construction site, however small, should have successfully completed the "Site Managers Safety Training Scheme". This is a five day course that can be taken on a "one day a week" basis or all five days in the same week. The cost is in the region of £500 per person. An investment of £500 may well save you over £1,500 in charges if you were served an enforcement notice or were investigated following an accident.

For further information refer to our website www.buildersguild.co.uk  and the links to the Health and Safety Executive's website www.hse.gov.uk

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Financial Crisis and Advice to Members

21 December 2011 by Administrator

As we approach the end of 2011 we get closer to the collapse of the European financial system. As we stated in our blog on 7^th November 2011 the Euro is fatally flawed. Sometime early in 2012 one or more of the countries using the Euro will default and this will be the start of a collapse that will have far reaching consequences.

The Prime Minister, David Cameron, was right to veto the proposed new treaty and his standing and credibility in the eyes of the more intelligent public was greatly enhanced. The other leaders of Europe are making a huge mistake in their attempt to preserve the Euro and the Eurozone. Many of the struggling "Club-Med" countries will not be able to convince their electorate to accept the severe austerity measures necessary to remain in the Eurozone and many of the countries involved will not be able to pay the interest on their debt. Most of the leaders would not dare to tell their electorate the facts and the level of austerity that will be imposed on them in the near future. The proposed fiscal rules will remove most budgetary powers from the national and democratically elected governments. The majority of people in Europe are being deceived by their leaders into thinking that the Eurozone is viable. Fiscal union of such diverse peoples that make up the EU simply will not work.

How will the problems of the Eurozone affect the construction industry in the UK? The Government has indicated that it will try to stimulate the economy by embarking on a number of infrastructure projects. This may help the larger contractors but is unlikely to create work for small and medium size builders who rely on smaller projects for domestic and commercial clients. The domestic market will be depressed for some time due to the number of people being made redundant in both the private and public sector and the general reluctance to embark on anything but essential repair work. The lack of confidence in future prospects of continuing employment and the potential collapse of some financial institutions will not change in the short term.

The problems for the well established and totally legitimate builders are exacerbated by the costs of VAT and contributions to the Construction Industry Training Board. Time and time again we hear of Members being undercut by builders that offer to carry out work without the addition of 20% VAT. Sometimes builders require payment in cash, other times they take a cheque and cash it in one of the many high street agencies offering "loans to payday" or the clearing of cheques and payment in cash for a percentage fee. The Government is being very shortsighted in continuing with its policy of requiring 20% VAT to be applied to repairs, extensions and maintenance work to both private and commercial properties. A reduction to 5% would answer many problems and would almost certainly increase the amount collected by HM Revenue and Customs.

The builders who are seeking cash payments for their work and not charging VAT are also not making any contribution to the CITB. The CITB itself is well past its sell by date and the whole question of craft training and youth unemployment needs the urgent attention of the Government. If young people were given the opportunity of building craft training from the age of 15 in technical colleges they would be employable at 18. This is a matter that should be addressed by the Department for Education. The CITB have an abysmal track record in the training of core building crafts: carpenters, joiners, bricklayers, plasterers, painters and decorators. The shortage of these particular trades has attracted large numbers of well trained and competent craftsmen to come to the UK from other European countries to fill the gap. The problem for this country is that most of the money that they earn is taken out of the UK and not spent here.

Small and medium size builders and subcontractors should pay particular attention to profitability and "cash flow" and not be tempted into "suicide" bidding for work to keep busy. Members should take particular care in checking the creditworthiness of all potential clients before entering into a contract or agreement to carry out work. If there is the slightest doubt, ask for a deposit to cover the first weeks labour and materials costs and then seek payment every week to cover the following weeks costs. Any time payment is not forthcoming or if a cheque is not honoured - stop work.

Our advice is not to fall into the trap of borrowing from the bank. Their interest rates are extortionate and they will want personal guarantees and possibly even a charge on your property. It is very important that you provide a written quotation detailing the work required and obtain a written instruction from the client. Your quotation should include the payment terms. It is also important that you price all work carefully and include a reasonable profit margin. It might seem hard but if you are short of work and do not see the situation changing in the near future you should make staff redundant sooner rather than later. Being prudent now will leave you in a stronger position when the economy improves later next year.

Finally, don't blame the current Government; they are making us pay for the previous Government's folly of spending more than they received in taxation. Hopefully the present Government will not waver in its undertaking to cut costs and waste, and start looking after the hardworking tax payers of this country.

We would be pleased to receive comments on this blog or any other matters from Members or other readers.

We hope that all or our members and their staff and families have a very Happy Christmas and a successful and prosperous 2012.

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The Fatally Flawed Eurozone

07 November 2011 by Administrator

It becomes clearer by the day that the "eurozone" is fatally flawed.

The European Union is hopelessly mismanaged, its accounts have not been audited for over 17 years, they continue to demand increases in contributions in excess of inflation, they dream up more and more regulations that make member states less and less competitive with the rest of the world.

More significantly a number of member countries have over many years failed to balance their budgets - they have spent more than they can raise in taxation. They have had to borrow the shortfall and this shortfall attracts interest and therefore the amount they owe has grown larger and larger. The amount owed by a number of countries is now so large that it is virtually impossible for them ever to repay without the most stringent austerity measures leading to much lower standards of living and considerable hardship for the majority of people. The Greek debt is so large that banks are being asked to write off 50% of the money owed to them. European politicians are misleading us by saying that this is not a default by Greece. How can it not be? How many of our members would get a warm reception from their banks if they sought a 50% reduction in their loans or overdrafts?

Even with this massive write-down Greece will still owe so much that at the interest rates that it has to pay it will be impossible for them to keep their indebtedness from rising. But Greece is not alone. Italy, Portugal, Spain and Ireland now have to pay such high rates of interest on their loans that they face austerity measures shortly to be as stringent as those being imposed on Greece.

As we pointed out in our blog on 21st October 2011 the Euro is irrevocably doomed to fail. Supporting the Euro is a waste of taxpayer's hard earned money. Simply putting more money into countries that are hopelessly in debt is not the answer and writing off part or all of the indebtedness is an admission of the failure of the particular country to exercise sound financial management.

It was a serious error of judgment by David Cameron not to permit a free vote in the House of Commons on holding a referendum on the UK's membership of the European Union. The argument that we could not survive if we left the EU because 50% of our trade is with member countries is nonsense. Do you think Germany would not trade with us? How many German cars do we import? Do you think France would not trade with us? How much French wine, cheese and other products do you see on our supermarket shelves? Trade takes place both ways and if the price is right goods are sold and goods are purchased.

How long before the Greek Drachma re-emerges?

 

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Referendum on Membership of the European Union

21 October 2011 by Administrator

If the Conservative Party is to retain the respect and support of the electorate they must permit a referendum as soon as possible and certainly by the end of March 2012. David Cameron's integrity, policies and leadership are now being questioned by his supporters and the public generally. A huge majority of people voted Conservative because of his undertaking to hold a referendum and they will not forgive him if he continues to renege on that undertaking.

For many reasons it is essential that the United Kingdom leaves the European Union. It is clear that the leadership of the EU and our current government have little or no understanding of basic economics or good housekeeping. It is irresponsible to allow expenditure to exceed income. Failure to understand this leads to financial crisis and that is exactly what we have in Europe as well as at home.

The common currency, the Euro, is irrevocably doomed to fail. Supporting the Euro is a waste of taxpayer's hard earned money. Simply putting more money into countries that are hopelessly in debt is not the answer and writing off part or all of the indebtedness is an admission of the failure of the particular country to exercise sound financial management. In short, Greece will never pay its debts and at least four other countries will be in the same position by the middle of 2012.

It would be much more sensible if the Euro were to be dismantled in an orderly manner over the next month or so and admit that a single European currency was never going to work than for it to be propped up until the inevitable happens. The British people supposedly living in a democracy will not accept collapsing living standards for the sake of supporting the Euro and the European Union. There are no benefits only hardship and suffering. The British people voted to join a Common Market and not a political union. It is time for them to be given the opportunity to speak for themselves. From our research we believe that the outcome of a referendum would be a large majority in favour of leaving the European Union and a substantial majority in favour of leaving the European Union but retaining trading links.

David Cameron will not be forgiven if he imposes a "three line whip" on Conservative Members of Parliament forcing them to vote against holding a referendum. Individual Members of Parliament of all parties will not be forgiven if they do not show independence from their leaders and respect for the electorate and vote in favour of a referendum.

 

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Illegal Workers

10 August 2011 by Administrator

The UK Border Agency find that it is particularly difficult to get messages to the construction and related industries on illegal working and have asked the Guild of Builders and Contractors to help by providing information and promoting the message. They have provided information on a recent successful visit to a company operating to the west of London.

A Southall builders' merchant is facing a big fine after the latest in a series of UK Border Agency raids targeting illegal workers.

Acting on intelligence, officers visited Western Timber and Builders Merchant on Western Road, Southall on the morning of Thursday 4 August, where they questioned staff to see if they had the right to work in the UK.

Three employees, all Indian nationals, were arrested for working illegally. A 27-year-old man was arrested for entering the country illegally, while two men aged 34 and 25 were found to be failed asylum seekers.

A fourth man, believed to be a customer, was also arrested for immigration offences.

Three of the four remain in detention awaiting their removal from the UK. The 27-year-old man was later granted immigration bail and must report regularly to the UK Border Agency while his case is dealt with.

Western Timber and Builders Merchant now have to prove that they did the correct right-to-work checks on their staff, or they could face fines of up to £10,000 per illegal worker.

Salma Raja, head of the UK Border Agency's Ealing Local Immigration Team, said:

 "Those who employ illegal workers are not only breaking the law, they're also taking jobs from those who do have the right to work and are undercutting Southall's legitimate businesses and traders.

We're happy to work with firms to help them understand what checks they need to do, but those who do break the law should know that we are out there looking for them, and they will be caught."

Every year, the UK Border Agency imposes civil penalties on thousands of companies which fail to carry out proper right-to-work checks on staff.

Legitimate companies and in particular builders and contractors are suffering from competitors offering "cash in hand" prices free of VAT. Many of those are also illegal immigrants or employ illegal workers on a "cash in hand" basis. One member operating in North London has reported that he is unsuccessful in 80% of his quotations. Both private and business property owners are giving the work to small bands of illegal workers.

Members unsure of the steps they need to take to avoid employing illegal workers can visit www.ukba.homeoffice.gov.uk/advice-for-employers or they can call the UK Border Agency's Employers Helpline on 0300 123 4699.

For more information and contact details for the Local Immigration Teams visit http://www.ukba.homeoffice.gov.uk/aboutus/your-region/london-se/local-immigration-teams/

Anyone who suspects that illegal workers are being employed at a business or are undertaking work for private or business clients can contact Crimestoppers on 0800 555 111 anonymously or visit http://www.crimestoppers-uk.org/.

Have you lost work to "cash in hand" firms?

Please let us have your views by sending an email to info@buildersguild.co.uk or clicking on "comments" at the end of this item.

 

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Core Craft Training

29 June 2011 by Administrator

Over the past 30 or so years successive governments have failed to provide core building trade craft training and the current Coalition Government is not addressing the problem.

Currently we are told that there are nearly 3 million unemployed young people and yet the building industry is so short of trained people that the majority of skilled building craftsmen working on current projects are from overseas. Most come from Eastern Europe and are highly trained at craft colleges where they have completed a full time three year course followed by further training with their local employers.

Similar craft training courses were available in the UK 30 years ago until persuasive academics influenced those in charge of the education system and insisted that all pupils, irrespective of ability, must be academically educated. 

A large percentage of young people would benefit from training that would lead to full time employment in the building industry if craft training at colleges were to be available throughout this country. Apprenticeship schemes will not work in sufficient numbers to substantially reduce youth unemployment.

Given appropriate teaching facilities and competent training over a three year period some 100,000 young people could be absorbed into the building industry and like the majority of the existing skilled craftsmen be guaranteed a job for life.

With the abolition of our state run building craft training colleges politicians were persuaded to sanction the foundation for an industry lead training board funded by a levy on all established building companies for the purpose of reimbursing those builders then training indentured craft apprentices.

Unfortunately the Construction Industry Training Board's performance in ensuring that adequate numbers are trained for these core building trades over the past 20 years can only be described as abysmal. The evidence is clearly seen and understood by all in the building industry.

Currently builders provide over £140,000,000 per annum in levy payments to the Construction Industry Training Board (CITB) and the CITB provides part funding for training of 40,000 people in a very wide number of trades but only 9000 in the core trades. (600 bricklayers, 4000 carpenters and joiners, 700 plasterers, 800 roofers, 3000 painters and decorators). The CITB has no remit to fund the training of plumbers and heating engineers. It does however part fund the training of many other non-core trades where many of the benefiting employers do not contribute to the CITB levy. Many builders employ plumbers and heating engineers and pay the CITB levy but do not benefit from the part funding of training of these trades.

As a direct result of the failure of the CITB to address core craft training a number of independent craft training centres have been established offering to train applicants, for a substantial fee, in a City and Guilds curriculum leading to the award by them of a suitable NVQ in the chosen craft.

The problem with this type of training is that the applicant having paid a substantial amount of money must find full time employment with a suitable building company in order that the trainee can demonstrate their competence. This on-site training and experience particularly in the plumbing and heating discipline often takes two to three years.

There are a few well-meaning building contractors who provide opportunities for young people but the numbers are totally inadequate.

The core building trades are: carpenters and joiners, bricklayers, plumbers and heating engineers, painters and decorators, plasterers and roofers. The failure to make craft training facilities available to young people from the age of 15 is an indictment of previous and the present government. Education policies have let down thousands of now unemployed people and it seems that the present administration has no plans to rectify the situation.

The Guild of Builders and Contractors are conducting further research into the activities and performance of the Construction Industry Training Board and Gas Safe. Results and comment will be the subject of future blogs.

 

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Unannounced site visits from the HSE

14 February 2011 by Administrator

The HSE have announced that from the 14th February 2011 they will be commencing a three month campaign of unannounced visits focusing on working at height, asbestos exposure and site order.

They are looking to target refurbishment projects in particular as statistics have shown that this area is lagging behind others in making improvements to reduce the number of accidents.

 

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Subscriptions by Credit Card

17 January 2011 by Administrator

We are pleased to confirm that subscriptions and other payments due to the Guild can now be made by credit/debit card through a secure payment system by telephoning the Membership Secretary. You will need to know your membership number and have your credit card available.

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Paternity Leave

17 January 2011 by Administrator

Has the Coalition Government totally lost the plot? They profess to being enthusiastic to reduce unemployment particularly for young persons and they admit that the key is to encourage small and medium size employers to take on additional staff. The new paternity leave proposals will do the opposite. Small businesses will not risk the disruption that is inevitable if male employees are given the right to take part or all of the maternity leave from their partner. The result will be businesses avoiding taking on and training persons under 35. This will of course be of some help to those not wishing to retire. As the Federation of Small Businesses say "This is the wrong measure at the wrong time".

Any Comments?....

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20 Percent VAT on Home Improvements

13 October 2010 by Administrator

It is undoubtedly necessary for the Coalition Government to substantially reduce the enormous national debt that they inherited from the last Labour Government. However is it wise to increase the VAT to 20% on home improvements, refurbishment work and property extensions?

Currently there are many small and even medium size builders and associated contractors willing to take cash and forget the VAT. This is taking place all over the country and involves competent and otherwise respectable builders and contractors and not just the "cowboys". The VAT saving is being actively sought by home owners anxious to keep their costs down. Having been provided with quotations by three or four firms many homeowners then ask "how much is it for cash?" The builder given the job is usually the one who takes the cash and reduces the price by the VAT element.

It seems obvious that this practice will increase when the VAT rate is raised from 17.5% to 20% with HM Revenue and Customs and the Exchequer being the losers - and that means the taxpayers! A number of suppliers of building materials have noticed an increase in the number of people paying cash for quite large quantities of goods. For many years successive governments have been lobbied to reduce the VAT rate on home improvements, extensions and refurbishment to 5%. Most homeowners would be willing to pay 5% VAT and legitimate builders charging VAT and paying corporation and income tax would benefit. The homeowner would also benefit by being able to enter into a valid contract and being able to obtain redress through the courts for any breaches of the terms of the contract or any unsatisfactory work. There are a number of published estimates of the amount of tax lost by this cash payment arrangement - often referred to as the "black economy" - ranging from £1 billion to £2 billion.

The higher taxation becomes the more people are prepared to evade it. Your comments are invited.

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