Bureau Veritas asks industry to reduce Silica exposure

With guidelines on managing exposure to hazardous substances at work becoming ever tighter, Bureau Veritas has called on the construction industry to ‘work smarter’ on addressing the risk silica dust poses to employees.

Silica is a material found in most types of natural stone, clay, bricks and sand, and activities such as grinding, crushing and mixing break down the silica and generate a fine dust like Respirable Crystalline Silica (RCS). Regarded as one of the most significant causes of occupational lung disease worldwide, exposure to RCS causes Chronic Obstructive Pulmonary Disease (COPD) and in the UK alone is estimated to result in up to 1,000 deaths each year through silicosis and or lung cancer.

According to global certification expert Bureau Veritas, in light of recent industry campaigns to raise awareness of this hidden killer, it has never been more important for construction firms to ensure they have the right occupational hygiene programme in place.

Gerard Mooney, Principal Consultant in Occupational Hygiene at Bureau Veritas, comments: “For many employees working in factories and construction sites across the UK, there continues to be a significant risk from over exposure to silica dust and in particular respirable crystalline silica (RCS), which can penetrate deep in to the lungs to cause damage and disease. The invisible nature of this dust – much of the Respirable Crystalline Silica (RCS) cannot be detected by the human eye – and long timeline before health effects occur often means control measures are ignored, by which time, unfortunately, it can be too late.”

“Given the danger it clearly presents, it’s time for the construction industry to work smarter on limiting the risks that silica dust and RCS pose to employee health. At the heart of this will be ensuring a robust occupational hygiene strategy is in place for controlling workplace exposure to these harmful substances, which if done correctly not only prevents potential fatalities but by stopping dust from becoming airborne in the first place can reduce non-productive man hours spent cleaning up and reduce the reliance on expensive respiratory protective equipment (RPE).”

With so many factors to consider and a myriad of different regulations to meet, such as Control of Substances Hazardous to Health Regulations 2002 (COSHH) and the Health and Safety at Work Act 1974, construction firms can often struggle to effectively manage the health of employees who perform operations involving stone, rock, concrete and plaster.

Gerard advises: “We would therefore encourage manufacturers to review their existing occupational hygiene programme to ensure it goes beyond simple compliance. A comprehensive review of all potential sources of RCS exposure including substituting where possible for materials with a lower RCS content, implementing a continuous risk reduction program, and having effective Local Exhaust Ventilation systems in place, can certainly go a long way in safeguarding employee wellbeing and will ultimately save lives.”

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Skills shortages strangling construction sector

Recent research from City & Guilds Group shows that one in 20 construction companies believe their workforce doesn’t have the necessary skills for now, or the future.

The new report, developed in collaboration with The Work Foundation, explores the challenges facing the UK construction sector, with members of the industry citing skills as a major problem.

City & Guilds Group is now calling upon the Government and industry representatives to take action to future-proof the construction sector through lifelong learning, upskilling and reskilling initiatives.

“Constructing the future: How the skills needed for success in the workplace are changing” highlights the importance of the UK construction industry for the UK economy, as the fourth largest sector by turnover and the fifth largest by employment. Despite the size of the industry, as technology has advanced, many believe the workforce doesn’t have the necessary skills for the future.

Examining the main issues facing the industry today, the report reveals that the majority of companies (54%) are impacted by growing skills shortages, while productivity and investment both remain low, resulting in stunted profits across the sector.

In terms of the workforce, self-employment is on the rise and the industry is struggling to attract and retain young workers; the number of younger professionals in construction has fallen to a third of the level it was in 2005. Finally, a lack of consideration being given to learning and development is impacting all tiers of construction professionals from entry level up to senior management, with little more than half of employers providing training – which is predominantly in health and safety.

Chris Jones, CEO City & Guilds Group, commented: “The majority of people in employment now will still be in the workforce in 30 years’ time. For the construction industry, that’s almost two million professionals who know that their skills are already becoming outdated thanks to technological advances. To survive the numerous challenges the industry faces, and boost productivity, the workforce will need to develop digital, analytical, and interpersonal skills – and that requires new standards, training and qualifications.

“As the world of work continues to evolve, it’s essential that construction businesses understand the role they play in upskilling and reskilling their workforces. But there’s also a job to be done by the Government, to support these employers, by ensuring they have the necessary policies in place – as well as funds – to make this a reality. The growth and success of the industry hinges on the ability of our skills system to adapt and develop to prepare for the jobs of the future.”

The report provides five key recommendations, for the Government, the construction industry and education sector to collaborate and take action:

1. Industry and training collaboration

Representatives of the construction industry and training providers must collaborate to ensure high quality and relevant learning for leadership and management, technical and digital expertise, and soft skills.

2. Apprenticeship alignment

The industry and apprenticeship levies must be aligned and revised to ensure they support all forms of learning and development necessary as the industry experiences technical and organisational change.

3. Inclusive initiatives

Upskilling and reskilling initiatives, such as the National Retraining Scheme, must meet the needs of the entire workforce from the outset, especially the self-employed, sole traders or those within micro-business.

4. Diverse learning and development schemes

Learning and development schemes must reflect the diversity of activities within the construction industry, and provide more opportunities for young people to experience real-life activities, including through digital platforms.

5. Tax relief for self-employed

HMRC tax relief for training should ensure that self-employed workers are incentivised to participate in learning, by recognising the costs of such activities and offering simple schemes to offset again income.

The full report can be downloaded here.

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Businesses back Mayor of London’s zero-carbon city vision

Eleven businesses – among them heavyweights Tesco, Siemens and Sky – have pledged to work alongside Mayor of London Sadiq Khan and help make London the world’s green capital.

Collectively, the eleven companies employ over 165,000 Londoners, and each organisation has agreed to aid the Mayor as he attempts to slash emissions far beyond government targets. The businesses will now aim to use 100% renewable energy across all of their London properties by 2020, and transition to zero-emission vehicles by 2025.

This newly established ‘London Business Climate Leaders’ group includes some of UK’s most recognisable property and construction specialists; Landsec, Derwent London, ISG and Morgan Sindall Group. Multi-national businesses Tesco and Siemens have also pledged their support alongside global media organisations Sky, Informa and RELX Group. The formation of the group follows the publication of the Mayor’s ‘London Environment Strategy’ in May 2018.

“I’m doing everything in my power to reduce London’s carbon footprint, and going further and faster than national government to make London a zero-carbon city by 2050,” said London’s Mayor. “This network is a great example of how cities and businesses can come together to take bold action on climate change. Not only are these businesses committed to renewable energy, clean transport and reducing waste, they’re also committed to working together to achieve results as quickly as possible.”

While the government will require businesses to disclose their emissions nationally from April 2019, the London Business Climate Leaders will reveal emissions for their London-based operations by autumn 2018. Other businesses operating in the capital are also being invited to join the initiative and pledge their support to making London a zero-carbon city by 2050.

Research indicates that the private sector accounts for a large share of London’s emissions. In total, around 40% of London’s greenhouse gas emissions stem from workplaces. As such, it is vital that the private sector acts now to tackle climate change.

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Clugston begins £39M Newcastle University scheme

Clugston Construction has begun work on a new state-of-the-art learning and teaching centre for Newcastle University.

The scheme, which is due to open at the beginning of 2020, provides new teaching facilities for sport and exercise science, human nutrition, the School of Psychology, as well as specialist facilities for the School of Medical Education.

A brand new, 9,000sq m, six-storey building, the learning centre will house a lecture theatre for 300 students, social learning spaces, seminar rooms, clinical suites, and academic and postgraduate offices.

The scheme itself was procured through the North East Universities Major Capital Projects Framework, established in 2017, and will be delivered by Clugston, led by GSS Architects.

The deisgn team has been involved in regular engagement sessions with the University and a group of key stakeholders from the Faculty of Medical Sciences from the outset of the project.

The new facility represents the last phase of the development of this key University site, which includes a new Sports Centre which is currently under construction.

Rod Fry, construction director at Clugston Construction, said: “We are delighted to be working with Newcastle University to deliver such an innovative project. The collaborative approach adopted by the University has enabled all parties to contribute to developing the state-of-the-art facility. Over the coming weeks, we will be engaging with our suppliers to deliver what we know will be a valuable resource for the University, its staff and students.”

Emma Stevenson, professor of sport and exercise science at Newcastle University, added: “This exciting new project is part of Newcastle University’s £500m investment in quality facilities that deliver an outstanding student experience and an excellent environment for our students’ learning, teaching and research.

“This new facility will be used by the whole University, promoting the development of cross-disciplinary research and teaching in sport and exercise science, psychology and nutritional sciences.”

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Mental Health Gateway launched

A new gateway has been launched designed to help change workplace culture and support those with mental health issues through the workplace.

Mates in Mind welcomed the launch of the online Mental Health at Work gateway and emphasised that changing workplace cultures requires ongoing leadership and hands-on-support.

The interaction between work and mental health is complex and sensitive, and remains a challenge for employers. Mates in Mind has supported many firms create better understanding across the construction supply chain.

Evidence from a study into workplace wellbeing by the mental health charity Mind (2018) shows that lack of awareness remains a barrier to addressing the issue in work and greater awareness and practical training is a valuable investment. But as the research also found, those staff who felt their line manager supported their mental health were 11 times more likely to disclose a mental health problem, compared with those who did not, demonstrates how important it is to embed the change within a workplace.

Mates in Mind has already reached more than 150,000 workers in its first year by providing more than 150 supporter and partner construction and construction-related firms with tailored resources and support.

Steve Hails, Chair of Mates in Mind and Health, Safety and Wellbeing Director, Tideway, a Mates in Mind Business Champion reflected on their journey over the last year: “Mental ill-health has been on everyone’s agenda but in our industry, which is, despite our endeavours, male dominated, we are more susceptible than most. Thankfully, things are starting to change, but we still have some way to go.

“Putting the right kind of support in place was the start of the conversation for us, and for many others. Importantly this needs to happen across all levels of the business, and leadership is key. And in our industry, with the nature of the supply chain, it is important also that it’s about recognising that this responsibility is not just about regarding the welfare of our own staff.

“This is what makes Mates in Mind so special in that we are working collaboratively across the sector through various projects and works, building in the change we need throughout the supply chain. After all, more than three quarters of those working in construction are employed by SMEs.”

Joscelyne Shaw, Executive Director, Mates in Mind said: “Creating awareness and improving access to information is important. However, as we say when delivering mental wellbeing training ‘we are not the same’, in a similar way, no two organisations are either.

“Our experience in working with our Business Champions and Supporters over the last year is that it is essential for an organisation to recognise it has its own story to tell, and that having the confidence to embark on this journey needs hands on support.

“Our partnered approach empowers organisations to bring their story to life, making it real to its people, helping to embed the change more sustainably. In some instances, this change in approach has come about at great cost, and the people working in these organisations are determined that with this understanding, there is positive learning for everyone.”

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New road schemes spark jobs and housing in Yorkshire and the North East

Three major road improvement programmes are expected to generate hundreds of new jobs and homes across Yorkshire and the North East, Highways England has announced.

In Harrogate, North Yorkshire, Junction 47 of the A1(M) will be substantially improved; boosting capacity along the region’s road network and shortening journey times, while generating new jobs at the proposed Flaxby Green Business Park.

Meanwhile, improved access from the A19 to the new International Advanced Manufacturing Park and Nissan Plant in Sunderland will be among a raft of regional upgrades with a collective worth of £82 million. A third scheme, also in Sunderland, will remedy a bottleneck at the A19 and A690 Doxford Park Junction, unlocking a potential 1,345 new homes in the process.

Richard Marshall, Highways England’s Regional Director of Operations for Yorkshire and North East, said: “Our roads are vital for the country and its economic success; they connect businesses and communities and support employment and new homes. All of our improvements will ultimately ensure our roads continue to improve journeys and unlock the potential for new jobs and homes.”

These key improvements in Sunderland and Harrogate, which total £2 million, are being paid for as part of a dedicated Highways England fund to foster local growth and help get housing schemes get off the ground. The £100 million fund has already allocated over £77 million to communities across the country, upgrading junctions and improving access to commercial land and much-needed homes.

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Constructing and financing a claim against the truck manufacturers cartel

Recent European Commission antitrust decisions have resulted in users of trucks and lorries, including those in the construction and building sector, being able to claim substantial damages from the largest European truck manufacturers. Litigation funding can enable claimants to recover what is due to them with no cost or risk to their business.

We speak with Rosemary Iannou , Managing Director, Vannin Capital.

The Decision

The European Commission has issued decisions (the Decision) against all Europe’s leading truck manufacturers for their participation in a 14-year cartel. The cartel illegally coordinated truck prices throughout the EU and delayed the introduction of emission-reduction technologies, resulting in the European Commission’s ruling of anticompetitive behaviour.

The consequences of the Decision are such that all truck users in Europe, including those in the construction sector, are able to claim damages against the truck manufacturers identified in the Decision for the damages they have suffered as a result of the cartel’s wrongdoing.

The Decision is a key starting point for any damages claims by truck users because it can be relied upon to establish liability against truck manufacturers – one of the key battlegrounds in bringing a claim. Thanks to the European Commission’s Decision, truck manufacturers cannot deny that their unlawful anticompetitive behaviour took place.

Since liability has been established by the Decision, the level of damages to be paid is likely to be the key test in any claim brought. This being said, given that the cartel lasted for 14 years across an entire continent, the damages that may be claimed by users of trucks are likely to be significant.

Claiming damages with legal finance

To claim damages against the truck manufacturers for losses suffered, truck users will need to bring a claim in court against the manufacturers. The costs of bringing such a claim can be significant and can often be a bar to companies bringing claims.

The recent growth of litigation funding means that the costs of bringing an action should not prevent claims being brought. Litigation funders fund the costs of bringing claims on behalf of claimants in return for part of the damages secured.

Litigation funding is provided on a fully non-recourse basis, meaning that the costs of the claims are paid in full by the litigation funding – including lawyers’ fees and associated costs. The claimant pays nothing but is still able to pursue what is often a very valuable claim.

If, ultimately, the claim is unsuccessful, the funder loses its investment and the claimant makes no financial contribution to the claim nor any reimbursements to the funder for costs invested. The entirety of the risk is with the litigation funder. If the claimant wins and there is a recovery, the funder receives repayment of its investment and a return on that investment from the damages paid to the claimant. The return on investment received by the funder is determined on a case by case basis.

In the context of claims against the truck manufacturers, Vannin Capital is working with a law firm, Collyer Bristow, and advisory firm, Grant Thornton, to bring a group action on behalf of claimants affected by the truck manufacturers’ behaviour. Being part of a group such as this enables claimants to benefit from funding while also enabling them to benefit from economies of scale by sharing the costs of bringing the claim with other businesses. This reduces the level of funding required for each individual claim and therefore reduces the return payable to the funder from any damages received by each claimant.

Delivering value for construction businesses

Litigation funding enables companies to view litigation as an asset rather than a liability. Using funding to bring meritorious claims, such as the one construction businesses which use trucks have against truck manufacturers following the Decision, can generate value for companies without the need for them to invest their own capital.

The result is that any damages recovered from claims will have a direct benefit to profit and loss accounts, balance sheet value, EBITDA and cash flow, without any need to account for the potential costs of bringing claims. These clear accounting and financial advantages have resulted in executives increasingly feeling a duty to their shareholders to bring these types of claims where the financial investment requirement has been taken away and the potential upside rewards are significant.

In a time where many businesses, including well-capitalised firms, are struggling for liquidity and seeing their margins being increasingly squeezed, bringing a claim on a fully funded basis creates real value for companies – enabling them to maximise profit-making potential.

For construction businesses, for whom transport and infrastructure costs represent a significant part of their ongoing business costs and liabilities, bringing a claim against truck manufacturers on the basis of the Decision, on a fully funded basis, to recover losses which may be very substantial damages should be viewed as a benefit for those companies. There is an opportunity to generate real value from an asset from an area of the business (transport and infrastructure) which typically would be considered as a necessary cost liability.

Moving forward

The claimant group that is working with Vannin Capital, Collyer Bristow and Grant Thornton consists exclusively of end users of trucks. We are engaging with many companies across Europe with significant claims, often exceeding €10M. This underlines the potential value of these claims to claimants and the benefits that litigation funding can bring to businesses considering whether to bring them.

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