CECACommunicates

Issue 49February 2008

Future workloads confidence high as CECA Chairman calls for more investment

In a speech delivered at the CPA’s ‘Forecasting the Future’ conference, CECA Chairman Peter Andrews argued “we must increase the proportion of our wealth we invest in infrastructure.” He pointed out that the Government, by establishing the Centre for the Protection of National Infrastructure, recognises the importance of infrastructure to the well being of the nation but fails to provide the necessary levels of investment. His comments came as the Construction Products Association published its Construction Industry Forecasts 2008-12 which indicate that there are high levels of confidence within the industry about future work levels - Continued on page 10

In This Issue:2 Chairman’s Column 8 Public Affairs 3 Regional Focus - North West 11 Considerate Constructors4 Guest Comment - Mark Prisk MP 12 Employment Briefing5 Safety News 13 Industry Info6 Skills News 16 Director’s Comment

CECA Welcomes French DelegationOn the 17/18 January CECA played host to a delega-tion from La Fédération Nationale des Travaux Publics (FNTP), the equivalent trade association in France. The trip included a conference at CECA and a tour of the Olympic site at Stratford.

The Olympic site at Stratford

Employment BriefingFor the latest information regarding Increase in Redun-dancy Pay & Tribunal Awards please go to page 11 or click here.

H&S report submitted to Government The Strategic Forum for Construction Health and Safety Group was given the task of taking forward the Framework for Action from the Rt. Hon. Peter Hain MP’s Construction Forum.

Three ‘task and finish’ working groups met and the final re-port was presented to the Government. Entitled ‘Health and Safety Performance in the Construction Industry: Initial Indus-try Report to HMG’, the report outlines current progress and future actions towards meeting the agreed objectives.

CECA had significant input into this report which is available on the Strategic Forum’s website www.strategicforum.org.uk

For more information visit the CECA website www.ceca.co.uk

Infrastructure: Investing in the FutureThe Government defines national infrastructure as “the underlying framework of facilities, systems, sites and networks necessary for the functioning of the country and the delivery of the essential services which we rely on in every aspect of our daily life.”

Within that framework exists energy, food, water, transport, telecommunications, government and public services, emergency services, health and finance. These aspects are considered to be important enough for the Government to have a defence strategy for infrastructure, the

latest manifestation of which has been to establish a Centre for the Protection of National Infrastructure (2007), which is operated as part of the security services.

Why do we have a Centre for the Protection of National Infrastructure? Because the Government can appreciate that “without these services, the UK could suffer serious consequences, including severe economic damage, grave social disrup-tion or even large-scale loss of life.”

If contractors ever needed an endorsement for the importance of their work, there it is – energy, transport and water are all dependent on civil engineering – and you could argue that the others wouldn’t get very far without us either.

So why, if infrastructure is deemed to be so important, has there been such an inconsistent approach to it in recent times? Our infrastructure needs long-term investment – if we don’t fund it now, we will pay dearly for it later.

We need certainty. A long-term visible programme of investment will provide the incentives contractors need to develop the specialist skills and expertise required to construct what this country needs. This is not a quick process.

The process will become more complicated due to construction inflation and the Government’s failure to recognise it. As long as cost increases are considered in line with the retail price index then the gap between the Government’s expecta-tions and the market’s ability to provide will grow.

The longer we go without a robust investment programme the harder it will be to respond when the call to modernise our infrastructure finally does come. You cannot just build a railway line or a power station at the push of a button. It requires specialist skills and knowledge that have to be developed over time. If we do not get the clarity and consistency we need, then we do not get the time.

The need to get this message across, quickly, is shaping up to be one of the major challenges CECA faces. All of us need to sell this message; every CECA member must play a part in demonstrating the central importance of infrastructure. Our message should not be directed solely at politicians - we need to convince the Nation.

That will be the real challenge.

CECA Communicates

Civil Engineering 55 Tufton Street Tel: 020 7227 4620Contractors Association London SW1P 3QL Fax: 020 7227 4621

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CHAIRMAN’S Column

Peter Andrews

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Page 3 CECA Communicates

REGIONAL Focus

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CECA North WestChairman Neil McLeod dicusses the work of CECA NW

Founded in 1996 by 28 member companies, CECA NW membership has grown and is now steady at some 60 member companies with a high level of member participation in regional events and liaison activities.

Under the direction of current Chairman Neil McLeod of A.E.Yates Ltd., Bolton, members in-volvement remains at a very satisfactory level with CECA NW supplying delegates to all of the CECA National Committees and Working Groups. Regional commitment is impressive with

succession to the Regional Chair secured to 2011 - including potentially the first lady to be elected to that role. CECA NW Past Chairman Trevor Walker has previously occupied the National Chair and that of the Construction Confederation, while Past Chairman (2x) of CECA NW Mike Carrol is currently the only Vice Chairman of CECA.

CECA NW has always been keen to forge new and productive links with kindred bodies and has now established formal liaison arrangements with the Association for Consultancy and Engineering (ACE) NW Branch, which promise to be of mutual benefit.

Recognising the Government’s aspirations for decisions to be made at the most appropriate level, CECA NW sought to establish links with Regional Government to ensure that they heard our voice in their deliberations. The highlight of 2007 was the election during July of CECA NW to SEEP (Social Economic and Environmental Partner) i.e. stakeholder member-ship of the North West Regional Assembly. Despite government proposals and press statements to the contrary NWRA is expected to continue in an effective - albeit refocused and reorganised form, and CECA NW will remain part of it.

CECA NW organises and hosts liaison meetings with a wide range of industry related organisations including Highways Agency, Network Rail (joint meeting with CECA Midlands), HSE, Environment Agency, Greater Manchester Association of District Engineers (GMADE), Lancashire CC., United Utilities, Constructionline, Achilles, the former Construction for Mersey-side, and North West Regional Assembly. Other recent events have included seminars/presentations on Health Screening, Waste Management, and the new CDM Regulations - including one for Clients and their Consultants.

In common with many other CECA regions CECA NW is very much involved with ConstructionSkills in the development of new courses and the new Skills Academies - the NW being one of the two inaugural Academy trials. It is gratifying now to observe that the academy is developing its own momentum with numerous new applicants applying for approval. Many of the companies who have played such a major part in this success are CECA members and their support is greatly appreciated. CECA NW is also assisting ConstructionSkills and the Open University in the development of further courses and qualifications for our industry and its employees.

Member companies are heavily committed to provision of training and careers advice within their local educational es-tablishments and continue to spread the word. The CECA NW Director this year successfully brought together CECA NW, IHT, ICE and ACE members to provide both general and specific advice to schools and their students on industry affairs and career opportunities, by focusing upon industry image and the enormously diverse range of careers it can offer. Activities in Cumbria and North Lancs. alone during 2007 have reached some 540 students - mainly of 6th form level, but including some 70 year nines - the real target. The joint associations also funded and operated a stand at Skills NW at GMEX during 13 - 15 November 2007, no less than 28 volunteers gave time to assist and advise students over that period.

Recognising that “all work and no play makes Jack a dull boy”, CECA NW social activities include the Annual Dinner held at Crowne Plaza Liverpool each September, a Dinner Dance in early March at the Hilton Blackpool and the annual Mark Fairclough Golf Tournament at Delamere Forest Golf Club, Cheshire each May.

The North West of England is a wonderfully diverse place with a long heritage of civil engineering. Chairman Neil McLeod and the CECA NW Executive are committed to ensuring that the contribution made by the members to the eco-nomic prosperity of the region is not overlooked.

CECA CommunicatesPage 4GUEST Comment

Re-engineering our public services Mark Prisk MP, Conservative Shadow Minister for Enterprise

Over the next few years the delivery of high quality public services will be key a priority for government and the public. We need to re-engineer the organisation, delivery and management of our frontline services and, to achieve this, we’ll need the expertise of the construction and engineering professions.

History shows that only choice and contestability can deliver sustained improvements in productivity, something which will be so important in the public sector. So, private and

voluntary sector involvement will be a core feature of public service delivery in the 21st century, especially if we are to deliver whole-life value for money and high quality services.

For example, leading engineering and construction companies will have a significant role on the changing face of PFI and PPP projects. It’s why I value the expertise of CECA and its members. Delivering on these projects means tapping the full range of talents especially when dealing with our national infrastructure.

But the structure of that private sector involvement needs to evolve, if we are to drive up quality and drive down costs. This applies to all industrial sectors including construction and engineering. PFI, in particular, needs to become less about the provision of fixed capital and the delivery of buildings, and more about investment in the supply of contestable serv-ices.

But a Conservative Government must be pragmatic, not dogmatic. What matters to us is what works. Under a Conserva-tive Government, private sector involvement in the provision of public services will be based on clear and demonstrable effect to the public-service consumer and to the taxpayer.

So we will approach the provision of public services with an open mind, ensuring competitive neutrality and challenging the private sector to take on more risk and respond to the need for flexibility in future service delivery with innovative models.

Ultimately, the successful providers – both from the public and private sectors – will be those who innovate and evolve, developing solutions to the constantly changing problems their commissioning clients face. In short, those who succeed will be those who, through innovation, deliver more, and better, for less.

To regain public confidence in PFI and PPP we must again show that it delivers value for money. This will be achieved first by creating a culture of proper financial performance management in the public sector and looking at whole-of-life cost of projects. Secondly, we must tackle the culture and the capacity within Government. A contract will only work if it has been properly designed, and its delivery will only be as good as the managers running it.

At the moment we have a culture that tolerates, and even encourages, a constant churn of staff rather than end-to-end project delivery, and the management of vast PFI contracts by relatively junior officials. This is not a recipe for success. A competent government must therefore strengthen the management and oversight of public-private contracts, to ensure the taxpayer gets value for money.

We can then move on from the debate of the last four years and secure the urgent re-engineering of our public services, using the skills of the private sector where they are of benefit and the skills on the contracting market where they bring much valued expertise to a project.

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Page 5 CECA CommunicatesSAFETY News

Corporate Manslaughter Act comes into forceFollowing a lengthy parliamentary process the Corporate Manslaughter and Corporate Homicide Act becomes law in April this year. Where an organisation owes a duty of care to employees and the public the new law will make an organi-sation liable for a death that arises from gross failures in the way its activities were managed or organised

The Act will provide for ‘Publicity Orders’ requiring guilty companies to make public details of the offence, the conviction and the amount of any fine payable as well as “Remedial Orders” which can force a company to take steps to remedy the failures which led to death.

The safety practices and health and safety “culture” of companies will be issues which a jury can take into account in deciding whether or not companies have breached their duty of care. Companies will be liable if their actions (or failure to act) amount to a gross breach of duty and a death results. Penalties include unlimited fines and remedial/publicity orders.

CECA members should examine and analyse health and safety procedures to ensure that they are fit for purpose. Failure to manage health and safety adequately will leave organisations vulnerable to prosecution for this new offence.

LOLERFollowing an enquiry from CECA, the CC sought to clarify the LOLER requirements where excavators are used for lifting. Currently there is an apparent conflict between the wording of LOLER 1998 and the requirements of the European Machinery Directive.

Guidance is being produced by HSE in conjunction with the CC and the CPA. A final document is expected to be published later this year.

New Fatal and RIDDOR Statistics (1 April – 30 September 2007)

The provisional fatal, major and non-fatal injuries figures have been released for the first 6 months of the 2007/8 year. There were 32 worker fatalities for construction, plus two members of the public. The total figure was 108.

These are statistically similar to the previous year. For both major injuries and non-fatal injuries (major injuries plus over 3 day injuries), construction figures went against the overall industry downward trend. Whilst the across in-dustry rate of major injuries for employees fell in the first two quarters of 2007 by 2.8% compared with the same period the previous year, the construction rate rose by 4%. Also, whilst the overall industry rate for non-fatal injures for employees fell 6.5% compared to the same period the previous year, the construction rate rose by 5.1%.

These figures may be revised upwards in the future due to late reporting.

Non-English Speaking Workers’ GuidanceThe HSE has a webpage that translates documents di-rected at health and safety issues into 30 different languages, alongside their English texts. These include guidance on worker rights and responsibilities, ladders, noise, hand arm vibration and falls from vehicles.

It is available at www.hse.gov.uk/languages/index.htm?ebul=hsegen/14-jan-2008&cr=13

HSE has now added an updated version of INDG410 - Guidance for employers on their responsibilities for temporary and migrant workers. It is available in Bul-garian, Latvian, Lithuanian, Polish, Romanian, Russian and Ukrainian.

The English version is available at www.hse.gov.uk/pubns/indg410.pdf?ebul=hsegen/14-jan-2008&cr=12

Members should use these sites with caution.

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MEWPSAn issue was raised following a fatality on a con-struction site involving an operator of a Mobile El-evated Work Platform (MEWP) becoming trapped at height. It was apparent that the standards to which all MEWPS are designed and specified did not rec-ognise the risk of the operator being crushed against overhead obstructions and did not take account of an incapacitated operator being unable to carry out emergency actions.

A new British standard is now in the process of being introduced and some progress has been made with retro fitting some existing machines with safety measures to alleviate the problem. The Construction Confederation is continuing to work with manufacturers to address this.

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CPCS Management Committee announces Scheme review resultsCECA members have been awaiting the results from the Construction Plant Competency Scheme (CPCS) review that was conducted throughout 2007. The following is the press release from CITB-ConstructionSkills on the results of the review:

All feedback from the CPCS consultation has now been reviewed by the scheme’s Management Committee. Having considered the proposals in the light of the feedback received, a number of changes have been made to the initial suggestions floated for consideration. As a result of the response and vast support industry has given for the review of the scheme, additional amendments will be incorporated and a revised plant competence scheme will be launched in summer 2008.

The CPCS Management Committee, which includes representatives from key sections of the industry, conducted a far reaching consultation lasting eight months. A variety of feedback channels (including an online questionnaire, a dedicated e-mail ad-dress, a mail-out to over 11,000 employers, face-to-face consultation at SED, consultation with key federations and associa-tions, and twenty-four industry and training provider roadshows) has helped inform key changes to the largest plant scheme in the UK. Responses have been received from individuals and companies representing over 44,000 employees, offering their feedback on the proposal – which was up for review, in line with industry requirements.

The consultation with industry showed that the core elements of the scheme should remain in place, these include:

Maintaining the ConstructionSkills Health and Safety Test pass• Keeping Level 2 Scottish/National Vocational Qualification (S/NVQ) as the measure of competence.• The scheme would continue to consist of red Trained Operator cards and blue Competence cards.• Using the logbook as a means to record ongoing competence.•

However, there was wide support for an additional core element which will see a ‘CPCS Technical Test’ implemented into the scheme. The Technical Test will replace the existing Intermediate Certificate end test.

During the consultation process a number of issues were raised regarding the initial proposals causing amendments to be made, these include the following:

Amending the life of the red Trained Operator card – from the one year originally proposed to two years to encourage • individuals to work towards their S/NVQ once the Technical Test has been taken.Removing the proposed requirement that new entrants register for the relevant S/NVQ before receiving their red Trained • Operator card to avoid candidates being disadvantaged due to eligibility requirements for government funding. CPCS are, in conjunction with ConstructionSkills, continuing to work with government agencies to seek an acceptable solution for the plant sector.Permitting a degree of flexibility regarding location of Technical Test Centres to deal with remote locations and provision • of testing on site.Maintaining a list of Instructors that meet CPCS recommended standards to ensure individuals can select trainers that • have the required skills.Whilst it was agreed that the recording of health issues was desirable, consultation has concluded that, at present, rec-• ommendations will be made to ensure that applicants to the scheme are reminded of their responsibilities in regard to occupational health issues.Providing flexibility in the Technical Test Syllabi to ensure current issues notified to the scheme by the HSE and industry • bodies can promptly be included in the recommended training items. These would include items such as Quick Hitches.

Trevor Gamble, Chairman of CPCS stated, “the aim of the review was to ensure the scheme is meeting the current needs of the industry and allowing individuals to demonstrate competence in the plant sector in as simple way as possible, whilst main-taining the strong standards that has helped define CPCS since 2003. We’re delighted that so many of those in all areas of industry took the time to give us their thoughts on the new proposals, and we’re pleased that there has been broad support - this should see vast improvements implemented into the scheme over the coming months.”

SKILLS News

Continues on page 8...

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Page 7 CECA Communicates

CECA has been regular dialogue with CITB-ConstructionSkills on the progress of the review both directly and through strong representation on the CPCS Management Committee where CECA’s interests are represented by Tim Brownbridge of Edmund Nuttall. Through these channels CECA has been consulted over the progress of the reviews and has offered the views and concerns of contractors on the proposed changes.

One of the main concerns that came out of the review was the number of returns on which proposed changes to the scheme were being based. Joe Johnson, CECA’s Director of Training, commented “there have been growing concerns on the num-bers quoted by the CPCS Management Committee and the response rate to the review questionnaire. Whilst 11,000 questionnaires may have been sent out, according to CITB-ConstructionSkills only around 600 responses were received; that gives a return rate of around 5%. Of these responses roughly half were from employers and half from training pro-viders. CECA questioned whether this made the review sufficiently robust to draw conclusions and propose amendments, but we are assured by CITB-ConstructionSkills that trends have been identified which allow for the proposed changes to take place.”

Tim Brownbrigde was conscious that throughout the review period CECA members had their views and concerns passed on to the CPCS Management Committee. “From the time that I took my place on the Committee I have made sure that details of discussion held at the CPCS Management Committee have been passed on to CECA members. Joe Johnson has made these discussions available to members through Regional Directors and a good flow of information back from the Regions has ensured that CECA has been the most active voice at Committee meetings. Very real concerns have been, and are still being, made and these ensure that CECA’s interests are at the heart of any changes being made to the Scheme.”

An example of the influence of CECA can be seen in the decision to delay the implementation date for changes to the Scheme. Although the original date for implementation of changes was due for March 2008, with CECA’s input being taken into consideration this has now been delayed until August 2008. This will give sufficient time for the Technical Test to be developed and trialed prior to their introduction to ensure they will be robust and will address perceived shortcoming in the Scheme.

CECA will continue the open dialogue with CITB-ConstructionSkills to ensure changes made will improve the existing Scheme and the concerns of members are represented to ensure the revised Scheme meets the needs of civil engineering contractors.

SKILLS News

CECA Joins the Cross Industry Apprenticeships Task ForceThe Government is backing the launch and formation of a Cross Industry Apprenticeships Task Force to investigate ways in which the numbers of employers active in the recruitment and training of apprentices can be increased. CECA has been invited to become involved with the ConstructionSkills facilitated initiative and has accepted a place on the Task Force. The Task Force will look to address the fact that although some 30,000 young people applied through ConstructionSkills for apprenticeships, only 5,500 suitable places were offered by employers. Figures available from ConstructionSkills show fewer than 10% of UK construction companies employ apprentices of any kind.

The launch of the Task Force was attended by David Lammy MP (Minister for Skills), Sir Michael Latham (Chairman of ConstructionSkills), as well as CECA’s Director of Training, Joe Johnson. The Task Force seeks to contribute to the Govern-ment’s aim of boosting the number of apprentices in training across the economy from 250,000 to more than 400,000 by 2020. In support of this, the Task Force will focus on attracting sufficient employers from within the construction industry to deliver 20,000 apprentices by 2012. A key milestone to measure progress towards this ambitious target will be to ensure there are sufficient apprentices in training to field a strong team for the next World Skills event, due to be held in the UK in 2011.

Joe Johnson noted that many current apprenticeships did not produce a young person who is fully qualified for employ-ment once they had completed the apprenticeship programme. Within civil engineering the additional requirement for full competency could include training in first aid, manual handling, abrasive wheels and the operation of many types of plant machinery. This can be seen by some employers as a disincentive to employing apprentices as it is often quicker to place a new employee through a NVQ and conduct the additional training around that qualification. The end result is a fully competent employee in a shorter time frame, but one that has not completed an apprenticeship. Issues and barriers such as these will need to be addressed by the Task Force to allow employers to see greater benefits in investing in the training of apprentices. Regular updates will be provided on the progress of the Task Force.

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PUBLIC AffairsCECA welcomes overdue nuclear decision

On 9 January 2008 a new wave of nuclear power stations was given the green light by the government as a “safe and affordable” way to secure future energy supplies. John Hutton, the Secretary of State for Business, Enterprise and Regula-tory Reform, said in a statement that allowing more nuclear reactors would help to reduce Britain’s carbon emissions at a time of growing uncertainty about energy supplies. However, the Government was keen to stess that its support for nuclear power is part of the country’s wider “future energy mix”.

Commenting on the announcement, CECA Director, Rosemary Beales said: “The Government’s decision to back a new generation of nuclear power stations is welcome, if overdue. Energy provision is an issue of prime importance to our prosperity and quality of life and decisions have been delayed for far too long. The civil engineering industry has the knowledge and expertise to construct the power generation facilities the country needs and this decision is the clear mes-sage contractors have been waiting for.

“The measures outlined by the Government to speed up the planning process for critical infrastructure projects, being published alongside the Energy Bill, will facilitate the new build process and we trust that the measures will be progressed through to legislation and not abandoned as has happened in the past.

“If the private sector is to meet the full cost of construction, maintenance and decommissioning of the new generation of nuclear power stations the Government must ensure it provides the necessary level of certainty and long-term commitment for energy companies. A clearly visible long-term programme will provide contractors with the confidence to invest in ap-propriate training and resources to deliver what is required.”

However, the future of nuclear power in the UK is still far from certain as the Government’s nuclear consultation is currently being challenged in the Courts. Also, by insisting that energy companies would have to pick up the entire bill for funding and building the plants as well as paying the costs of waste disposal and decommissioning, Ministers have not necessarily provided the necessary degree of certainty to give contractors confidence to invest in specialist skills.

ICE calls for end to stop/start investmentThe ICE’s State of the Nation report on Capacity and Skills argued that short-term infrastructure investment causes delay and pushes up projects costs. It also highlighted the increas-ing problem of construction inflation which could see the gulf between actual construction costs and Treasury expectations widen to £8 billion by 2015.

CECA Chairman Peter Andrews agreed with the report’s findings over investment: “The State of the Nation Report is a timely and valuable contribution to the debate - skills and capacity are essential factors in the delivery of national infrastructure.

“It is essential that CECA and the ICE keep up the pressure on the Government to ensure that factors like needless delays in the planning system and the persistent stop/start fund-ing of infrastructure development are eliminated to ensure certainty and an even flow of work. Unless we achieve that, contractors will be unable to invest in the skills and training of their own workforce with any degree of confidence.”

CECA submits memorandum to Select Committee

CECA submitted a memorandum to the Transport Select Committee’s inquiry into the Delivering a Sustainable Rail-way White Paper (July 2007). The inquiry offers an ex-cellent opportunity for CECA to deliver its views right at the heart of the political process.

The memorandum put across members’ belief that while the intention to provide a long-term strategy for rail in-frastructure was sound, the actual strategy itself was dis-appointing. CECA emphasised the fact that funding has only been secured until 2014 and that the suggestions for the years after this are extremely vague. It was also ar-gued that there was a greater need for joined-up think-ing to demonstrate how rail interacts with other modes of transport.

CECA reaffirmed its faith in “the three C’s” - clarity, con-sistency and continuity of infrastructure investment that will provide contractors with the incentives to invest in necessary skills and resources. The Select Committee will publish its report later this year.

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PUBLIC Affairs

Flood ManagementCECA was represented at the Flood Man-agement Stakeholder Forum held at the Department for Environment Food and Ru-ral Affairs.

Part of the meeting was devoted to duscuss-ing the publication of the interim findings of the Pitt Review - Learning Lessons from the 2007 Floods.

The full report will be published in July and will contain recommendations for the pro-tection of critical infrastructure and to in-crease its resilience to flooding.

CECA will be present at the next meeting.

CECA Scotland meets Infrastructure Minister

On 21 January 2008 CECA (Scotland) Director Alan Watt met Stewart Stevenson MSP, Minister for Transport, Infrastruc-ture (Water) and Climate Change to discuss current issues affecting the construction industry in Scotland. Much of the conversation focused on civils work and there were some positive outcomes for CECA members:

Transport• CECA remained encouraged that the Scottish Government had taken early and decisive actions on the programme including the selection of the bridge option for the new Forth Crossing.

• CECA welcomed the Strategic Transport Projects Review and thanked the Minister for his response to CECA in December which reinforced the Government’s long-term commitment to transport investment.

• CECA informed the Minister that Transport Scotland’s Maintenance Operating Companies now had a number of smaller projects “on the shelf” and these could be brought forward quickly should any funding become available particularly as the fabric of the network continued to deteriorate and the budgets were reducing in real terms.

• CECA acknowledged that the Government was trying to remove ring fencing from Government funding and thereby empower Local Au-thorities. CECA hoped that this would encourage much needed invest-ment in the huge backlog of maintenance work required on local roads

and structures which were strategic rather than local considerations. The Minister stated he was very conscious of this and would monitor it closely. CECA assured the Minister that a recent CECA survey had identified that the Scottish civils indus-try had the capacity to increase its local roads and structures workload by at least 20% in year one and 5% annually thereafter.

Water• The Minister acknowledged that Scottish Water had made great progress from its standing start six years ago. He also felt that it now had a much more balanced range of procurement measures providing work opportunities for the local supply chain across Scotland (a long term CECA request).

• CECA acknowledged improvements made by Scottish Water in removing development constraints due to water and

Stewart Stevenson, Minister for Transport, Infrastructure and Climate Change.

sewerage capacity.

• CECA noted the progress in cooperation between Scottish Water and its regulators (particularly SEPA) and hoped that, without losing their inde-pendence, they would continue to develop more pragmatic work practices especially with regulatory requirements and consents.

Energy• Following the Scottish Government’s response to the UK Government’s En-ergy Policy announcement, specifically future nuclear facilities, the Minister stressed that the Government was not against extending the life of current nuclear and fossil fuel burning power stations but did not intend building any new nuclear stations unless a better environmental case could be made. Interestingly he did not rule out building new fossil fuel-burning power sta-tions and alluded to Scotland’s dormant coal reserves.

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PUBLIC Affairs

The Government is expected to put its faith in wind energy to meet its renewables targets

EU sets energy targetsOn Wednesday 21 January 2008 officials from the European Commision set individual national targets for renewable-energy use, a critical step in a plan to have 20% of the European Union’s energy come from renewable sources - such as wind, solar and biofuels - by 2020. The proposals still have to be endorsed by the European Parliament and the Council of Ministers but few problems are anticipated.

The renewables target of 15% of energy derived from renewable sources, although signiciantly lower than some other countries (Sweden has to produce 49% of its energy from renewable sources) is particularly challenging be-cause it refers to overall energy use, rather than just electricity. Britain only derives 2% of its energy from renewables (compared to 30% for Sweden, hence the higher target), and so must build six and a half times what it has

now - all within the next 12 years. While this is a tough task it should be relatively good news for contractors as the Government will have to invest more in energy production infrastructure if it is to back up its claim to being a world leader in the fight against climate change.

It is thought likely that Government will step up its interest in wind energy to meet this target but the biggest problems that stand in the way are connecting wind farms to the national grid and gaining planning permission. Wind farms will fall into the category designated ‘major infrastructure’ in the Government’s new Planning Bill which would aim to fast track the planning process. BERR Secretary of State, JohnHutton, has already confirmed that the UK will be adopting a mix of methods but, on top of nuclear power, tidal and solar energy are still seen as too expensive.

While CECA welcomes the fact that decisions are being taken over energy infrastruc-ture, CECA will continue to work to ensure that the Government is made aware of the fact that to maximise efficiency from tight resources, contractors must given a long term programme of investment to work with.

UK’s Energy Targets

By 2020:

20% improvement in en-•ergyefficiency

10% of vehicle traffic•powered by biofuels

15% of energy derived •from renewable sources

Positive Infrastructure Forecasts

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The CPA’s report painted a positive picture of civils workload over the past year, following four consecu-tive years of decline and this is not expected to be an anomaly. The report concludes by predicting: “Output on infrastructure projects which has declined sharply over the last decade is expected to recover strongly over the next five years with output increasing by over 25% from just under £5bn in 2007 to more than £6.5bn in 2012.”

Following this positive news, Peter Andrews used the opportunity to stress that as resources in the industry are relatively tight at present contractors must be given a visible policy timetable to work to and the funding must be committed to prevent delays further down the line: “The truth is simple. Our infrastructure needs long-term investment - if we don’t fund it now, we will pay dearly for it later.”

Civil Engineering 55 Tufton Street Tel: 020 7227 4620Contractors Association London SW1P 3QL Fax: 020 7227 4621

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Page 11 CECA Communicates

CONSIDERATE Constructors

New limits on redundancy pay and basic and compensatory Tribunal awards have been announced to take effect from 1 February 2008.

The annual increases are in line with Government changes implemented under the Employment Rights (Increase of Limits) Order 2007 SI 2007/3570. The new limits will apply where the event giving rise to the right to compensa-tion took place on or after 1 February 2008, and a summary of the main increases are set out on the following page. ...continues on next page

Repeal of the Dispute Resolution Regulations

In October 2004 the Government introduced new and onerous regulations designed to help resolve employment disputes in the workplace and re-duce the number of complaints being made to the Employment Tribunal.

The change proved disastrous and the Govern-ment has announced its intention to repeal the Regulations. Nothing has been made certain but it seems most likely that the role of the Advisory Conciliation and Arbitration Service (ACAS) will be expanded and that the current system, where-by ACAS have a limited period during which they can conciliate, will be removed.

It will be April 2009 at the very earliest before any change is implemented so, in the meantime, employers do have to live with the existing Regu-lations.

Considerate Constructors Scheme set for next stage of developmentFollowing an independent review of its activities, the Considerate Constructors Scheme (CCS) has published a new three year business plan designed to take this successful industry initiative on to the next stage of its development.

Key components of the business plan are:

To increase take up of the Scheme from currently just over 40% of the construction value of all eligible UK sites to • 60% by 2010. This will be done through a variety of means including increasing the number of contractors who are Associate Members of the Scheme (and therefore registering all their sites) and expanding the Client Partnership Initiative;

An ‘umbrella’ registration initiative to encourage more smaller builders to use the Scheme and to enable larger con-• tractors to register their smaller sites. This will offer companies the ability to register all their sites of less than 10 weeks’ duration under one ‘umbrella’ company registration. Monitoring these sites will focus more on the processes that the contractors have in place rather than the activities on individual sites but the current Scheme standards will be upheld. The new initiative will be trialled later this year and will go live in 2009;

An on-line registration system making it easier and quicker to register new sites, will also help more SMEs to embrace • the scheme;

The requirements for companies to achieve the highest level • of performance on large construction sites will be raised to reflect the continuing business improvement programmes in the industry. What was best practice 10 years ago has be-come the norm today and so the very best performers need to be seen to be well ahead of the game;

There will be an enhanced programme of activity to raise the • profile of the Scheme amongst the general public. Contrac-tors will be encouraged to use standard neighbour informa-tion packs that explain their membership of the Scheme and a communication toolkit will be available to site managers to help them better communicate with the general public.

Speaking on behalf of the CCS Board, Chairman Norman Reed said: “Contractors who sign up to the Scheme see a wide range of benefits and are continually challenging us to offer even more. Our new business plan responds to those demands whilst also making it easier for SMEs to access and get real benefit from the Scheme.”

For more information pleasxe visit www.ccscheme.org.uk

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Page 12 CECA Communicates

EMPLOYMENT Briefing

Increase in Redundancy Pay & Tribunal Awards LimitsNew limits on redundancy pay and basic and compensatory Tribunal awards have just been announced to take effect from 1 February 2008.

The annual increases are in line with Government changes implemented under the Employment Rights (Increase of Limits) Order 2007 SI 2007/3570. The new limits will apply where the event giving rise to the right to compensation took place on or after 1 February 2008, and a summary of the main increases is set out below.

Old Limit New Limit New maximum

Redundancy PayLimits on a weeks pay

£310 £330 £9,900

Unfair Dismissal Basic AwardLimits on a weeks pay

£310 £330 £9,900

Unfair Dismissal Additional AwardLimits on a weeks pay

£310 £330 £8,580 - £17,160 (between 26 and 52 weeks pay

Unfair Dismissal Compensatory Award £60,600 £63,000* Guarantee PayLimit on a day’s pay during short-time or tempo-rary lay-off in respect of 5 days in any period of 3 months

£19.60 per day £20.40 per day £102.00 per week

* NB. The CIJC Working Rule Agreement provides lay-off pay based on the actual basic rate for the first 5 days.

Employers are reminded that dismissals that do not comply with the requirements of the Dispute Resolution provisions of the Employment Act 2002 will be regarded as “automatically unfair” by an Employment Tribunal resulting in an increase of between 10% and 50% of the compensatory award. CECA has uploaded a detailed Briefing (September 2004) re-garding the provisions - which is available on the members area of the website www.ceca.co.uk

...continued from previous page

Sustainability Best Practice SiteThe Construction Confederation Environmental Fo-rum sustainability best practice microsite, which is being hosted by Building magazine can be seen at www.building.co.uk/bestpractice.

The site includes a series of case studies and on-site best practice information supplied by member companies. The objective of site is to improve the image of the construction industry and to develop as a definitive site when looking for environmental best practice case studies within the construction in-dustry.

Anyone wishing to have their best practice exam-ples included on the site should contact Caroline Page on caroline.page@thecc.org.uk

Easter Holiday 2008Easter comes early this year with Good Friday on 21 March. This means that the closedown for the Industry has been promulgated from the 21 March to Friday 28 March inclusive.

Unfortunately schools are increasingly taking the half-term break in April which fits in better with the academic year. This can present problems for operatives having to deal with child care arrange-ments during the school half-term.

Employers are reminded that the CIJC Working Rule Agreement allows flexibility to change both the Easter (Spring) and Christmas (Winter) close-down periods by agreement between employers and operatives (WR.18.2).

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Page 13 CECA Communicates

INDUSTRYInfoEnvironmental Regulation 2008

Below is a brief summary of forthcoming regulatory changes facing the construction industry in the next 12 months.

Environmental Permitting Programme The Environmental Permitting Programme (EPP) is a joint Environment Agency, Defra and Welsh Assembly Government initiative intended to streamline the waste management licensing and pollution prevention control (PPC) regimes and the Environmental Permitting (England and Wales) Regulations 2007 made in December will come into force on 6 April 2008. Whereas construction does not come directly within the scope of what was PPC, the changes introduced under the new arrangements will affect certain construction activities such as those that currently require Waste Management Licences, which will now become Environmental Permits, and the Exemptions thereto.

Site Waste Management PlansThe Regulations, which will make the preparation of a Site Waste Management Plan mandatory on all projects with a contract value in excess of a threshold (currently anticipated to be £300k), are due to be laid before Parliament during February and to come into force on 06 April 2008. There is expected to be a transitional period for the introduction such that any project which was in design before 06 April and which commences on site before 01 July 2008 will not need a Plan. A higher threshold limit (probably £500k) will apply above which the requirements of the Plan will be more oner-ous. As soon as the Regulations are published Defra will engage in a Consultation on the Non-Statutory Guidance which they are preparing to explain the actions that must be taken to comply with the new Regulations.

“Duty of Care”Defra have been considering, through the latter half of 2007, the responses submitted to an earlier formal consultation on the “Controls on the handling, transfer and transport of waste” more commonly known as the ‘Duty of Care’. Proposals for change are expected to be published in late Spring and will be the subject of a further 12 week formal consultation period.

Following consideration of the responses to that consultation revised legislation is programmed to come into force next year on 6 April 2009. The introduction of Site Waste Management Plans, noted above, and the changes to the Duty of Care are both designed to strengthen the legislation as part of the effort to reduce the continuing and serious problem of ‘fly-tipping’. It is reported that 25% of the 2.5 million annual fly-tipping incidents involve construction and demolition waste.

Exemptions to Waste Management LicensingLikewise Defra have also been considering the responses submitted to their informal consultation during 2007 on some proposed changes to the Exemptions to Waste Management Licensing (which as noted above from 6 April 2008 will be Environmental Permitting) and to the way in which the exemptions are applied for and registered. It is expected that formal proposals in the form of draft Regulations will be published in late Spring and will be subject to a 12 week con-sultation period. Again, revised legislation is programmed to come into force in April 2009.

Abstraction Licences for the dewatering of construction worksUnder the Water Act 2003 the previous exemption from abstraction licensing for works of engineering construction are to be removed where the abstraction is greater than 20 m3 per day notwithstanding that the water is not used for commer-cial gain. Although various dates for the implementation of this change have been announced in the past these have so far been postponed. Currently the Netregs website suggests that from April 2008 an abstraction licence will be needed if more than 20m3 per day of water is taken for dewatering whereas Defra gives a date of October 2008 for the removal of exemptions from the licensing system so it may well happen this year.

Waste Framework DirectiveThe European Commission first published its proposals for a revision to the WFD in December 2005. Since then it has been subject to discussion and amendment by the various European institutions. The European construction industry, through FIEC, has lobbied hard to have two amendments incorporated, or more exactly to have two materials excluded, from the scope of the Directive, namely, uncontaminated excavated soil where it is to be reused in its natural state and unexcavated contaminated soil. ...continues on next page

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Europe

Ever Decreasing Circles: Working Time & Temporary Agency WorkersIn December, the Portuguese EU Presidency tabled proposals to move forward on the proposed amendment of the Work-ing Time Directive and the Temporary Agency Workers’ Directive. In what turned out to be a failed attempt, the Presi-dency, European Commission and a number of Member States tried to play each proposal off against the other, linking them together as a package of employment affairs reform.

On the Working Time Directive, the draft text would maintain the opt-out mechanism to the maximum 48 hour working week with employers ensuring that no worker may work over 60 hours per week, to be calculated over a maximum refer-ence period of 6 months. The previously tabled idea of a ‘sunset clause’ that would get rid of the opt-out after a certain number of years did not resurface. However, in allowing the opt-out to continue, the Directive would introduce new and potentially onerous record-keeping mechanisms where the opt-out is used.

Employers would need to keep up-to-date records of all workers who carry out work under the opt-out and adequate records for establishing that the provisions of the Working Time Directive have been complied with. These records would need to be placed at the disposal of the competent authorities which may, for health and safety reasons prohibit or re-strict the possibility of exceeding the maximum weekly working hours and documentation would also have to be provided to the authorities if requested. Essentially, these additional reporting levels will add to levels of bureaucracy however the new rules would have to be policed in some form.

The Portuguese ideas on the Temporary Agency Workers were unacceptable to the UK. The original proposal four years ago wanted temporary agency workers to receive the same rights as full time workers (i.e. on pay, holidays etc) after only a period of six weeks of having worked for an organisation. The UK, the Construction Confederation and other busi-ness groups argued that any such ‘benefits’ should kick in after at least a 12 month period had elapsed. The Portuguese re-tabled the proposal that reverts to the original six week ‘qualification’ period as a maximum but no agreement has been reached on this dossier.

The Confederation, with CECA’s support, continues to influence national and EU officials on these dossiers. In terms of EU legislative procedure, both the draft measures have to return to the European Parliament for Second Reading after agreement is reached by Member States.

Page 14 CECA Communicates

INDUSTRYInfo...continued from previous page

The current position is that the latter is accepted but the former is only accepted where the reuse is on the site from which it is excavated – not helpful when excavated material might be used on another project rather than as the alternative be-ing consigned to landfill. The UK government supports a compromise of exclusion where the reuse of the uncontaminated excavated soil on another site is certain at the time of its excavation. Pressure for exclusion will be maintained and 2008 may see the conclusion of the debate and the publication of the final revised Directive.

Construction Environmental ManualThe Construction Confederation publishes an environmental manual designed to help contractors comply with legal duties and improve the way environmental issues are handled. The manual includes sections on all of the areas facing regulatory change over the next 12 months and will be updated to reflect the changes and provide simple, informative guidance on the key environmental issues that face most construction projects. It is easily updated, to keep pace with changing legisla-tion and regulations, through subscription.

The manual describes the steps that must be taken both to ensure compliance with legal duty and, through the use of good practice, to ensure that the environment is adequately protected. For each relevant topic the manual aims to outline ap-plicable legislation and codes of practice and give simple pragmatic advice on the types of controls and measures that will maintain legal compliance and minimise impacts on the environment. The Manual can be purchased from CECA for £125 (including VAT).

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Page 15 CECA Communicates

INDUSTRYInfo

Taxation

Increase in some advisory fuel ratesThe following new car fuel advisory rates apply to journeys undertaken on and after 1 January 2008 (Rates from 1 August 2007 in brackets)-

Engine size Petrol Diesel LPG

Up to and including 1,400cc

11p (10p) 11p (10p) 7p (6p)

1,401cc to 2,000cc 13p (13p) 11p (10p) 8p (8p)Over 2,000cc 19p (18p) 14p (13p) 11p (10p)

These latest rates are based on prices per litre of 102.1p (petrol), 106.3p (diesel) and 50.2p (LPG). Advisory fuel rates are the HMRC approved rates at which employers can reimburse their employees for business travel in company cars, or to require employees to reimburse the cost of fuel used for private travel in a company car without attracting a fuel benefit charge.

Tax compliance – New CIS – Status reviews have startedStatus Reviews – checking that firms have a good clean compliance record – and confirming that their ‘Gross Paid’ Sta-tus can be re-authorised - have started.

Of the first 119 firms tested, 31% failed and will be without gross payment status unless they appeal (successfully). If this percentage of failure holds good, about one third of gross paid contractors will become net paid in the year ahead. You must look at your compliance record and make quite sure that you are sending in returns for CIS, IT, CT and PAYE on time – and paying on time. Please do a review now.

Services Directive ImplementationAgreed at the EU level in December 2006, the UK Government must implement the Services Directive by the end of 2009 and BERR is currently consulting on this. The fundamental aim of the Directive is to break down barriers to trade and make it easier for service providers from one Member State set up business and offer their services elsewhere in the EU.

The Confederation, with CECA’s support successfully lobbied on the Directive to ensure that health and safety is excluded from the law, meaning that overseas contractors cannot operate in the UK under their own home country legislation, as had been contained in the original proposal. The BERR consultation is open until mid-Feb-ruary and the relevant documents can be downloaded at www.berr.gov.uk/consultations/page42211.html

Networking Opportunity for HR ProfessionalsCECA members may not be aware that for many years the Construction Confederation has co-ordinated the activities of The Employment Affairs Advisory Committee.

This Committee meets in London three times each year and comprises HR and Industrial Relations Professionals from member companies. Attendance at meetings is free and meetings are designed to keep members up-to-date with changes in employment legislation, developments in the Working Rule Agreement and other industry related matters. Additionally it provides an ideal networking opportunity.

The committee next meets on Wednesday 9 April. If you are interested in attending please phone 020 7227 4523.

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Page 16 CECA Communicates

“The customer is always right” is the supposed golden rule of the service industry, which produces a knowing smile on the face of anyone who has been on either end of bad serv-ice in a restaurant or on an evening out.

In construction our customers are known as “clients”, but they are customers none-the-less. Contractors compete to win their business in a market place and meeting the requirements of the client is all important. The requirements shape a lot of the activity that contractors undertake in their pursuit of ‘business development’.

For example, one of the biggest headaches for CECA members is the sometimes exces-sive requirements of the supplier accreditation questionnaires that are a fact of life for contractors. Often duplicatory, contractors find themselves supplying the information more than once in different forms and the process is becoming excessively demanding in terms of time and manpower. CECA is aiming to improve the understanding of the needs of

contractors as businesses among the various Accreditation Databases, helping them to improve their business practices as well.

But client best practice is a wider concern than just the Pre-Qual problems that could be avoided. Our clients procure and contractors construct and maintain nationally important infrastructure. Getting the best work at the best value from the contracting community is an issue of national significance.

For over a decade CECA has forged a relationships with clients across the board and has consistently put across a vision of how a client can get the most from the relationship with a contractor. In some instances we have seen best practice emerge – particularly with the Highways Agency and their ground-breaking ‘Early Contractor Involvement’ contracts. But for many others, it has taken a buoyant civils market to wake up to the relationship between the number of contractors willing to tender for their projects and the way they, as clients, operate. If contractors can choose for whom they work, they will go for contracts where the client values the relationship with the contractor.

This goes beyond valuing the supply chain. Clients have public responsibility to be as innovative as they can be in the way they manage their contracts and their contractors. This does not mean they need to constantly reinvent the wheel, but they should always be looking for ways to ensure that nationally important infrastructure is delivered in the safest, greenest and most cost effective way. Early contractor involvement, taking into account the possibility that when contractors buy materials in a global market place the prices they pay are not subject to their control and sharing a greater amount of the risk are all steps towards achieving this.

Our industry calls its customers ‘clients’ and rightly so. A customer purchases a commodity. A client buys a service. Our members offer a service and in the process forge a deeper relationship than a simple transaction would imply. Like any relationship, it needs to be balanced if it is to be positive and productive. CECA is committed to making the relationship work through active liaison and would welcome input and participation from any members who would like to be a part of this process.

DIRECTOR’S Comment

Civil Engineering 55 Tufton Street Tel: 020 7227 4620Contractors Association London SW1P 3QL Fax: 020 7227 4621

Rosemary Beales

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CECAContacts:

CECA (National) DirectorRosemary Beales020 7227 4620

CECA Director of TrainingJoe Johnson020 7227 4626

CECA Technical & Environmental OfficerJohn Wilson020 7227 4624

CECA Head of External & Public Affairs Phil Morgan020 7227 4625

CECA Communications AdvisorJack Callan020 7227 4623

CECA Administrator (and Publications)Laura Ellis020 7227 4620

People and Resources Committee 6 February 2008

Rail Forum 7 February 2008

Finance Group 14 February 2008

External Relations 19 February 2008

Safety, Health & Environment Committee20 February 2008

Council4 March 2008

Nuclear Forum12 March 2008

CECACalendar:

CECA Council Dates for 2008:

4 March 2008 23 September 2008 3 June 2008 9 December 2008

CECA55 Tufton Street, London, SW1P 3QLwww.ceca.co.uk

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