AMC Takes Delivery of Electric Fleet

National crane hire firm, AMC, has taken delivery of its all-new fleet of electric-operated mini cranes, representing a significant six-figure investment and a commitment by the company to be at the forefront of the electric vehicle revolution.

AMC has welcomed six Maeda MC285CB-3 and five Hoeflon C6e fully battery-powered mini cranes at its two depots in Liverpool and London, demonstrating the very best technology in carbon-neutral lifting.

The new arrivals have helped AMC win a number of new contracts in 2021 worth approximately £20,000, including Moxy Southampton Hotel, Livingstone Academy Bournemouth and Borough Market, near London Bridge. This is in addition to working alongside material manufacturer MICAM at Heathrow Airport Terminal 2 to help replace the ‘Wall of Honour’ glass sculpture dedicated to those who helped build the terminal.

Mark Davenport, owner and managing director of AMC, commented: “Our mission is to continue innovating as a future-thinking company, so we can provide our customers with more choice, quality and reliability in bespoke lifting solutions. Our new electric cranes will help us achieve this tenfold and I am proud to see the company leading the competition in this arena. Electric cranes are the future of our industry – and AMC is right there at the front.

“What the company has achieved in the last 12 months is quite incredible when you consider the challenges we have all faced through the pandemic. We have been brave in our actions by investing in new equipment, creating jobs when other companies made cuts, and bringing our existing fleet bang up to date. Our confidence has paid off and we are now in a position to be excited about how the second half of 2021 progresses – especially now with the new electric fleet in place.

“With our electric cranes having an extensive battery life, our commitment to expanding the business while staying sustainable is one that we will continue to stay true to as we move forward.”

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Challenges for construction in 2021

From the introduction of the VAT reverse charge to Brexit, experts predict even more change in the construction industry this year.

Specialists from Chartered Accountancy practice, Sheards Accountants look at some of the biggest changes and themes within the construction industry in the next 12 months. As well as how they might affect businesses and how accountants can support.

Skills shortage: 

Before the COVID-19 pandemic, the construction industry was facing a skills shortage. Looking at construction output in the UK over the past 12 months, all construction work fell by 12.5% compared with 2019. This was the largest decline in annual growth since 2009 where output fell 13.2%(1). This decrease hints that the issue of labour shortage is set to continue into 2021.

In November of last year, data from the Office of National Statistics (ONS) revealed that redundancies during the pandemic had resulted in the lowest number of people employed in the construction sector since 2013(2). However, with work now beginning again across many sites, it’s anticipated that more positions will become available.

Kevin Winterburn, director at Sheards Accountants says: “The pause in training and completed projects in 2020 could mean that the skills shortage has worsened, with fewer trained individuals ready to enter the workforce. But businesses should be encouraged to think about the future and the role they can play in upskilling new workers in the industry.”

“The government has recently announced a number of new grants and support measures which aim at supporting businesses to employ new workers including apprentices. For many construction firms looking to grow their workforce in light of an anticipated pick up in work, making use of these new and improved schemes and grants could be a good way to strengthen their teams in 2021. Firms should speak to their accountants about the schemes and how they can take advantage.”

VAT reverse charge: 

HMRC’s new VAT domestic reverse charge for building and construction services came into effect on the 1st of March 2021.

The reverse charge applies to all CIS registered businesses buying and selling construction services that are subject to CIS reporting, apart from those that are zero-rated, up to the point in the supply chain where the customer is the end-user. At this point, the normal reporting and collection of VAT resume.

Where the reverse charge applies, rather than the supplier charging and accounting for the VAT, the recipient of those supplies accounts for the VAT. In practice, this will mean that where there is a chain of contractors/subcontractors working on a building project, for example, none of those entities will add VAT to their invoices, other than the main contractor who is invoicing the end-user of the property.

One of the biggest challenges for businesses in the sector is cash flow and a recent survey revealed that 1 in 5(3) construction companies say cash flow is a constant problem, as well as 84%(4) of construction companies reporting that they had problems with cash flow.

Kevin comments: “With the new VAT domestic reverse charge from 1st of March 2021, we predict this could have a negative impact on the already stretched cash flow issues in the construction industry. It’s important for firms to review their existing work pipelines and relationships in light of the change.“

IR35: 

The changes to the IR35 legislation come into effect on the 6th of April 2021. From this date, medium and large companies will be responsible for determining the employment status of any contractor and personal service companies (PSC). Essentially meaning that companies must determine if these workers are ‘inside’ or ‘outside’ IR35.

This change means contractors and PSCs are no longer responsible for performing this assessment or for the potential tax or National Insurance contributions liability. The change to the legislation will bring the private sector IR35 in line with the public sector, which saw the same reform in 2017.

Kevin adds: “In light of the upcoming change, we recommend undertaking a review of your contractors and PSCs, as well as your wider supply chain to ensure you are fully aware of your obligations and any liabilities in the event of non-compliance.”

Brexit: 

One of the biggest challenges businesses will face in 2021 is Brexit. The end to the right to free movement and the introduction of a points-based immigration system could put an end to construction firms employing workers from the EU. Based on this, experts predict these changes could drive up the cost of labour by as much as 10%.

On top of this, Brexit could mean supply issues with construction materials. The EU/UK post-Brexit trade agreement, which came into effect on the 1st of January 2021, introduced measures to ease restrictions on the flow of goods between the EU and the UK. However, increased customs checks, assessments, duties, and restrictions on products from outside the UK and EU could cause delays, shortages, and an increase in costs.

The Builders Merchants Federation (BMF) has already warned that congestion at UK ports is affecting the availability of construction materials. It has also been reported that material prices are up 20% on certain products.

Kevin says: “Now that the UK is no longer a member of the EU, it has lost access to the European Investment Bank (EIB) and the European Investment Fund (EIF). Historically, these institutions have invested large amounts in major infrastructure projects and SMEs. This loss of funding could cause issues with the delivery of large infrastructure projects and start-ups in the UK.”

“If your business moves goods between the UK and countries in the EU, you’ll need to follow new customs and tax rules due to Brexit. We understand this means a lot of changes, and HMRC can help you navigate with the SME Brexit Support Fund. Firms should contact their accountants or HMRC directly to learn more about the available support.”

Sustainability: 

A critical issue that the construction industry has been facing in recent years, is adopting sustainable practices. This challenge comes with many areas for consideration, including the cost of changing ways of working to be more sustainable.

The World Green Building Trends 2018 Smart Market Report revealed that almost 40% of UK firms reported affordability as the biggest challenge posed by adopting sustainable construction practices. Almost 50% stated that they expected green buildings to incur higher first costs.

However, construction firms can also see cost savings by implementing sustainable methods such as reducing waste and increasing energy efficiency. Other benefits of sustainable building products are the increased demand for them in the market.

Kevin says “In order for businesses to upgrade their tools or move to a more sustainable way of working they’ll need to think about cash flow and how much they can afford to invest. We would suggest working with your accountants to form a realistic time plan and look at work funding or grants that may be available to support these changes.

“To encourage capital expenditure and business growth, the government recently unveiled a new ‘Super Deduction’ tax relief. The idea is that companies will be able to claim a deduction from their tax bill if they invest in new plant and machinery for their business, which could help construction firms move towards a more sustainable way of working. Under the super deduction, you are allowed a capital allowance of 130% on your qualifying plant and machinery investments. We’ve developed a full guide to this new measure which you can see here.”

Summarising the challenges facing the industry in 2021, Kevin Winterburn adds: “With new regulations and ways of working coming into play in 2021, the industry is set for another busy year. It’s essential for businesses of all shapes and sizes to understand how these issues and changes may impact them and speak to their accountants about how they can best prepare.“

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VolkerSmart Technologies Awarded Contracts

VolkerSmart Technologies has announced that it has been awarded another two full fibre rollout contracts in Bracknell and Maidenhead by CityFibre.

The contracts, which have a combined worth of more than £24M, started in April 2021 and are set to continue until autumn 2022.

VolkerSmart Technologies, the Smart Cities initiative from highways service provider, VolkerHighways, is to construct full fibre networks on behalf of CityFibre which will reach almost every home and business throughout Bracknell and Maidenhead.

The works include excavating 170,000m of trenches in Bracknell and 110,000m in Maidenhead. The teams will install ducting before blowing, splicing and finally testing the fibre optic cables.

Alistair Thompson, managing director of VolkerHighways, said: “We are delighted to have been awarded a further two full fibre rollout contracts for CityFibre in Bracknell and Maidenhead, taking our total to five, as a further development of our relationship with CityFibre. We understand the importance of high-speed broadband, particularly as we live through these unprecedented times, and we look forward to improving local residents’ and businesses’ digital experiences.”

With increasing numbers of people working from home, the works will provide the essential infrastructure that is needed for almost every home and business in Bracknell and Maidenhead to be able to access the UK’s fastest broadband services.

Where it is possible, the team from VolkerSmart Technologies will use a hybrid installation, incorporating both new underground trenched duct networks as well as existing overhead infrastructure. By using the combined installation, the team will be able to provide a faster and more efficient delivery, all while minimising disruption for residents.

The major investments in both Bracknell and Maidenhead are part of CityFibre’s plans to replace the nation’s legacy networks with gigabit-capable full fibre connectivity. The state-of-the-art infrastructure is expected to boost business productivity and innovation, and deliver millions in economic benefits, while giving residents access to the UK’s fastest broadband services.

Stacey King, CityFibre’s city manager for the Thames Valley, commented: “We are excited about the work that is already underway in Bracknell and Maidenhead, and extremely proud of the progress CityFibre has made across the region. Working closely with our build partners, this is the start of an exciting new chapter for the Thames Valley as it gets ready to thrive in the digital age.”

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Realising Sustainability Ambitions

In this article, Jamie Cameron explores how businesses can reach the proposed BEIS framework for rating the energy and carbon performance of large commercial buildings.

The commercial property market will have a key role to play in helping the UK achieve net-zero greenhouse gas emissions by 2050. But how do we start moving towards such a seemingly daunting goal? The answer lies in taking a more intelligent approach to the way we use, monitor and measure energy in our buildings. This will require new ways of accurately and efficiently measuring consumption.

Reducing commercial energy usage requires knowledge of where businesses are in the first place. To this end, the UK government has proposed the introduction of a national performance-based framework for rating the energy and carbon performance of large commercial buildings. The framework, put forward by the department for Business, Energy & Industrial Strategy (BEIS), will apply to commercial and industrial buildings above 1,000sq m in England and Wales, with annual ratings and mandatory disclosures making up the first steps.

Building and sustainability managers have long needed a means of communicating whether they are on a net zero trajectory. The launch of a performance-based framework like this will bring much greater transparency to the industry.

Creating healthier buildings

Over the past year, the drivers behind healthy building initiatives have evolved beyond cost savings and employee experience. Facility managers have understandably been focussing efforts on creating healthier workspaces and limiting any potential spread of the virus indoors. However, creating truly healthy buildings will require owners to look at the bigger picture and think of steps that can be taken to lower their building’s emissions while balancing that against the requirement for healthy buildings.

One of the key behavioural changes to come out of the pandemic has been a tendency to be more conscious about our environmental impact. This has led employees to be more mindful of the strategies their employers are implementing, or not implementing, to limit their carbon footprint. Under the current system used to determine a building’s energy efficiency, the Energy Performance Certificates (EPC), building owners are under no obligation to measure energy consumption. This means they are unable to guarantee whether their building actually uses less energy or emits less carbon, regardless of its rating.

The introduction of a performance-based framework, however, will put the onus on businesses to measure their energy consumption to determine how close they are to realising their sustainability goals. While only 7% of commercial and industrial buildings in England and Wales are larger than 1,000m², these spaces consume over half (53%) of all the energy in the commercial property market – with the right technologies in place, the impact of BEIS’ proposals could prove pivotal.

Technology’s role to play

The reality is you can’t improve what you can’t measure, but meeting a a business’ sustainability ambitions does not rest solely on the shoulders of building and facility managers. Technology will have a crucial role to play for BEIS’ framework to yield the hoped-for results.

All of your energy usage – whether it’s thermal, water, electrical, storage or carbon – can be tracked, analysed and managed. But building owners must be equipped with the right technologies. If not, they won’t be able access the insights they need to achieve their sustainability, operational and space health goals.

Smart building automation and advanced analytics systems will help businesses optimise the performance of their businesses and assets while reducing unnecessary waste. Here, Artificial Intelligence, Big Data and Machine Learning technologies make it possible to identify and diagnose equipment problems, pinpoint efficiencies and take corrective action from the insights provided. To do this, businesses need to implement the right connected solutions that can actually deliver sustainability, operational savings and new occupant experiences.

Championing sustainability at every level

Whether we’re aware of it or not, the buildings we use on a daily basis have a huge impact on our environment – and this can no longer be ignored. Sustainability must therefore be at the centre of everything we do if we stand a chance of reducing emissions in the UK commercial property market.

Delivering on the country’s sustainability pledges will ultimately require decisive action, and BEIS’ proposals for a performance-based framework will be important first steps towards a greener future. Taking a data-driven approach to managing a building’s energy performance cannot be underestimated. Only by measuring, collecting and analysing this data can a company then move forward into how best to reduce it.

Jamie Cameron is the director of digital solution at Johnson Controls UK&I.

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APM Research Shows Shift to Remote Working

With the UK Government setting out its roadmap to ease lockdown restrictions, nearly half of project professionals (49%) have revealed that their company is to move to a permanent remote working model for its staff.

A new study of more than 1,000 project professionals carried out for the Association for Project Management (APM) highlights the impact of the pandemic on the ways of working throughout the project management profession, as well as revealing the levels of optimism or pessimism on the return to normal project activity after COVID-related restrictions end.

The new research from Censuswide shows that the appetite for continued homeworking among project managers is strong. 47% state that regardless of their company’s plans, they would choose permanent remote working post-lockdown, while a further 17% state that they would opt for a mix of home and office-based work.

The survey also shows that 40% of project professionals say that home working has positively impacted their mental health wellbeing, with just over a third, 36%, saying they would prefer a permanent return to the office.

There is also a greater feeling of confidence among those responsible for delivering projects, with 62% of respondents revealing they are more optimistic now that project activity in their industry sector will return to normal within 12 months than they were at the end of 2020.

Debbie Dore, chief executive of APM, said: “Despite the challenges of the past year, the project profession has shown great adaptability and a willingness to embrace change. This is reflected in the number of project professionals who have adapted well to working from home and are happy to continue to do so.

“It is positive to see the high level of optimism on the re-mobilisation of project activity post-lockdown and the benefits of homeworking to mental wellbeing for many people.

“APM is committed to developing and promoting the value of project management in order to deliver improved project outcomes for the benefit of society, and throughout the lockdown period has continued to provide guidance and support to members and stakeholders, wherever they may be based, including the delivery of online qualifications and resources.”

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New Leisure Facility for Ayr

Work has started to develop a new leisure centre in Ayr following on from South Ayrshire Council’s appointment of hub South West, the construction and infrastructure-focused partnership which operates along with local authorities and private sector enterprises in Lanarkshire, Ayrshire and Dumfries and Galloway.

Along with Tier 1 contractor, BAM Construction, hub South West is set to begin work on the £35.5M project later in 2021. The new complex will revitalise the town centre by bringing more economic activity into the area, and will replace some of the services which are currently provided by the existing Citadel Leisure Centre located at Ayr Harbour.

Situated in the centre of Ayr, the project will create a major public building for residents of South Ayrshire. The inclusive development will enable people to be more active more often, and will target improvements to the community’s social, mental and physical wellbeing.

The new leisure centre will be on the site of the existing Arran Mall and the former Houstons department store. Dating from 1896, the historic elements of this building are set to be retained and incorporated into the new designs.

Michael McBrearty, Chief Executive of hub South West, said: “hub South West procured a design team, led by renowned architect Mike Lawless of LA Architects on behalf of South Ayrshire Council, to deliver a Strategic Support Services Report, a feasibility study which outlines high-level design proposals.

“As a result, hub South West, BAM and its design team have been appointed by South Ayrshire Council to develop the proposals and deliver this innovative new leisure centre for the people of Ayr.

“We have now started the process of public consultation for the project and look forward to hearing a wide range of views on the design and opinions on what this facility could do for the local community.

“This is hub South West’s second project with BAM following its appointment to the hub South West supply chain in spring 2020.

“BAM is a company highly experienced in delivering high-quality leisure projects and together we are looking forward to giving South Ayrshire residents a new facility of which they can be proud.”

Jim Ward, Regional Director of BAM, commented: “This is an imaginative project for Ayr town centre. BAM is delighted to be joining the team as its construction partner.

“We are currently engaging with all parties about the design of the new facilities before we can move on to the construction phase towards the end of the year.

“We will work with the local community in Ayrshire to create great opportunities for jobs and training from this scheme. It is exciting for us to be working with South Ayrshire Council, hub South West and a talented design team and, together, we will create a positive facility for people in Ayr.”

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Fire safety: Underappreciated Existing Obligations & Upcoming Changes

In the wake of the Grenfell Tower fire tragedy, the government and construction sector have reconsidered many aspects of building safety and special consideration has been given to fire safety. To target the factors which contributed to Grenfell and to bolster safeguards, the government has introduced reforms and proposed further legislation.

There’s been a lot of discussion about that new legislation, in the form of the Fire Safety Bill, but existing legislation should not be overlooked by employers, contractors, building owners and public authorities, as these laws continue to place fire safety obligations on parties involved in building ownership and maintenance.

Here, Philippa Jones, solicitor at law firm Womble Bond Dickinson takes a look at the existing legislation, if business is complying with it and what changes does the new bill make to propose to this.

Existing legislation

Fire safety in all non-domestic premises in England and Wales (including communal areas of residential buildings with multiple homes, but excluding houses occupied as single private dwellings) is regulated by the Regulatory Reform (Fire Safety) Order 2005 (the Order). Scotland and Northern Ireland have their own legislation regarding fire safety.

The Order came into effect on 1 October 2006 and, broadly, it requires any person who has a level of control over premises to take reasonable steps to assess the risk from fire and put in place appropriate control measures including measures to ensure people can safely escape the premises in the event of a fire occurring.

Are you a “Responsible Person”?

The Order imposes various duties in relation to fire safety on each Responsible Person ie:

1. the employer, if the premises are a workplace and the workplace is under the employer’s control,
2. the person who has control of the premises (as occupier or otherwise) in connection with the carrying on by them of a trade, business or other undertaking (for profit or not),
3. the owner, where the person in control of the premises does not have control in connection with the carrying on by that person of a trade, business or other undertaking,
4. the trust, academy chain, or local authority of a public building eg a school or hospital.

Identifying the parties that fall under these definitions is not straight forward. For example, despite a contractor being employed by the employer to undertake works at the premises, the contractor itself would be a Responsible Person as it has control over the premises to carry out the works, and as such they would have additional responsibilities and potential liabilities for any breaches of the Order.There can be more than one Responsible Person with obligations under the Order.

What must a “Responsible Person” do?

The duties of a Responsible Person include:

1. undertaking fire risk assessments,
2.  taking fire precautions to ensure the safety of employees and premises,
3. making arrangements for the effective planning, organisation, control, monitoring and review of preventive and protective measures,
4. ensuring that routes to exits and emergency exits are kept clear at all times,
5. ensuring equipment is maintained in an efficient working order and in good repair,
6. co-operating and co-ordinating with other Responsible Persons to manage risks.

Contractor’s additional requirements

As mentioned above, contractors carrying out works at a premises, despite not being the owner of those premises, are likely to fall within the definition of a Responsible Person because they have a degree of control over the premises for the purposes of carrying out their works.

If you are a contractor, steps you should take include:

1. at the start of any works, consider if the Order applies, including establishing whether the building is a private residence or not,
2. carry out a risk assessment, and nominate a competent person to implement any fire safety measures arising from that assessment –  you should be transparent,
3. bear in mind that there is an expectation that the contractor will notify the premises owner of any perceived fire safety risks identified by itself or third parties (eg failures of equipment to pass fire safety tests) and to cooperate with the owner regarding measures to address them,
4. consider the risks posed by the storing of potentially flammable materials near fire exits even if this is in a separate part of the premises to where the works are being carried out, and
5. remember that since the owner also continues to have control of premises more generally, your control of the premises may not be exclusive – owners are also Responsible Persons, and where there is more than one Responsible Person, you must both co-operate and co-ordinate with each other over fire safety risks.

Failure to comply – enforcement and penalties

Fire safety legislation is generally enforced by Fire Safety Enforcement Officers from the local Fire and Rescue Service but the Health and Safety Executive is the enforcing authority for any work place which is on a construction site.

Enforcement Officers can enter any workplace at any suitable hour, without notice. They conduct inspections to review the workplace, work activities, and management of fire safety.

Non-compliance with the Order can lead to enforcement action including service of Alterations Enforcement and Prohibition Notices and prosecution of corporate bodies and individuals.Fines can be substantial and sentences of imprisonment can be imposed on individuals.Additionally there could be other significant consequences including reputational damage as well as the potential human cost of a fire.

The new Fire Safety Bill

The new Fire Safety Bill, once it becomes law, will strengthen the existing legislation on fire safety. It will:

1. give greater clarity over responsibilities for fire safety in buildings containing more than one home,
2. enable enforcement authorities to hold building owners to account for cladding related non-compliances,
3. give the Secretary of State for Housing, Communities and Local Government powers to amend the list of qualifying premises that fall within the scope of the Order by way of secondary legislation, enabling the government to respond more quickly to developments in the design and construction of buildings,
4. place an increased focus on evacuation plans to ensure residents understand these strategies.

The Bill clarifies that, for any building containing two or more domestic premises, the Order applies to the building’s structure and external walls and any common parts, including the front doors of residential parts. It also clarifies that external walls include “doors or windows in those walls” and “anything attached to the exterior of those walls (including balconies).” These amendments are expected to provide for increased enforcement action, particularly where remediation of aluminium composite material (ACM) cladding is not yet taking place or the building does not have ACM cladding but is still defective.

Better understanding of fire safety legislation

The Fire Safety Order is often an overlooked piece of legislation and there is a general lack of understanding regarding the responsibilities of Responsible Persons and enforcement, despite the Order being in force for many years.

Better self-education for building owners and contractors about their responsibilities for fire safety will lead to safer communities.

Going forward, construction professionals should be mindful of their continuing obligations under the Order, review sites regularly and report changes which could affect fire safety.

Consideration should be given to whether works being performed make a contractor a Responsible Person and whether responsibilities can be shared with building owners and how contractors can discharge their cooperation obligations to ensure fire risks are avoided.

The industry should also closely watch out for further developments in fire safety, including the progress of the Fire Safety Bill, and its obligations under that.

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