Coronavirus update for construction: Thursday 19th

Grant Prior 5 years ago
Share

Covid-19 Update – 19 March 2020

 
Introduction
This short briefing has been prepared on behalf of the UK construction sector to brief companies and individuals on the ongoing repercussions of the Covid-19 coronavirus for our sector.

Government Advice 

The Department for Business, Energy and Industrial Strategy has updated its guidance for employers, employees and businesses during the pandemic – to read it, click here.

Covid-19: Cross-Industry Response
The Association for Consultancy & Engineering, Build UK, Chartered Institute of Building, CITB, Civil Engineering Contractors Association, Construction Plant-Hire Association, Construction Products Association, Federation of Master Builders, and Institution of Civil Engineers are working together to respond to Covid-19. Initial priorities for the group include:

  • Guidance on responsibly maintaining site operations
  • Guidance on employment issues including statutory and industry sick pay
  • Guidance on commercial and contractual issues where work is suspended
  • Publication of regular newsletters for the industry to brief on Covid-19 issues

Procurement

 

The Cabinet Office has confirmed that it is preparing guidance to public sector customers about how to deal with delay and disruption under public contracts, including force majeure claims. Industry will liaise with Cabinet Office to offer support in this work.

 

CITB

 

CITB has confirmed it will support the industry to protect skills for when the Covid-19 pandemic subsides, so that UK construction can play a full role in the UK bouncing back from this crisis.

 

  • Support for apprentices – CITB is assessing what support is needed to ensure it secures the future for any impacted apprentices.
  • Signposting for employers – CITB is working with federations and employer bodies to compile a list of support agencies that will advise on staff issues, and other business support, including sick pay.
  • Guidance for keeping sites working – CITB will publish Toolbox Talks and other learning materials to help keeping sites running during this pandemic.
  • Time-bound qualifications and cards – card schemes are urging site managers to show appropriate lenience to those with cards expired from mid-March, and have relaxed renewal windows. CITB has waived some of the fees for rescheduling or cancelling HS&E tests and for the duration of the crisis will accept SSSTS and SMSTS renewals beyond expiry.

 

CITB will provide regular updates and details of supporting activities via its specific Coronavirus-related webpage which you can access here.

https://www.citb.co.uk/urgent-messages/

 

Covid-19 & Cybercrime

 

There has been a spike in email scams linked to coronavirus, including fraudulent offers of a vaccine, specific measures that claim to help businesses, or fraudulent claims of available funds or tax breaks. Companies should be aware of this phenomenon and be vigilant online. For more details click here.

 

 

Coronavirus Business Interruption Loan Scheme

On 17 March Chancellor Rishi Sunak announced that £330 billion of loans to firms impacted by Covid-19. The loans are intended to support any business to access cash to pay their rent, salaries, and suppliers. The loans will carry no interest for the first six months. Loans should be available from early next week via high street banks. Details on accessing the support will follow in subsequent briefings

Grants to small businesses

The Chancellor announced that it would increase grants to businesses eligible for Small Business Rate Relief from £3,000 to £10,000. Companies that this applies to will not need to do anything – you will be contacted by your local authority.

IR35 

 

The Government has postponed the introduction of the IR35 tax reforms until next April, although the change remains Government policy and will take effect from next year.

Joint Industry Letters to Prime Minister
On 17 March the Construction Leadership Council and leading sector trade bodies wrote to Prime Minister Boris Johnson outlining the immediate difficulties faced by the sector. The letter calls for:

  • Government to ask all public sector construction clients to continue to pay their contractors and supply chains
  • Government to ensure all construction sites throughout the UK are able to remain open, as long as they are able to do so responsibly
  • Government to consider implementing financial measures, such as the deferral of VAT and PAYE payments, that will reduce the burden on business and keep cash moving as long as possible.

 

The Association for Consultancy & Engineering has also written to the Prime Minster outlining a series of immediate, short and near term measures that could help the industry deal with the economic impact of the COVID-19 crisis on our sector. The interventions include:

  • A grant of up to £50,000 to SMEs in our sector to enable them to meet the digital requirements of working from home to be spent on hardware and specialist software.
  • Acceleration of the pre-construction phase of Government programmes, including schools, hospitals and roads, to mitigate the downturn in private sector work, and help projects become shovel-ready sooner.
  • Turning the high-level commitment of an “infrastructure revolution” into a reality with a clear published pipeline of projects in the Autumn to stimulate the wider economy and generate business confidence.
  • Providing tax incentives for the housebuilding sector and further city deals to devolved Mayors to encourage private sector development.
  • Investment in Future of Consultancy demonstrator projects, £1 million seed-funding towards the business case and wider funding for R&D and innovation. All of which will ensure the entire sector is more robust going forwards.

Your feedback is vital

To help us to continue to support industry, we welcome feedback from across the sector. Please take five minutes to fill in the following survey which lets us know of the issues you face, and offers opportunity to provide specific feedback on Coronavirus Business Interruption Loan Scheme

You can take the survey here.

 

 

The Briefing has been prepared in collaboration between the industry’s leading trade and representative bodies: Association for Consultancy & Engineering, Build UK, Chartered Institute of Building, CITB, Civil Engineering Contractors Association, Construction Products Association, Federation of Master Builders, and Institution of Civil Engineers.

We are grateful to Building, Construction Enquirer, Construction Manager, Construction News, Highways and New Civil Engineer for support in distribution to the wider industry.

Latest news

Deck falls off huge scissor lift at Winvic site

Two men seriously injured as platform plunges to the ground
22 hours ago

Bouygues seals deal for £119m Cardiff college campus

Construction to start in June on two new buildings
1 day ago

Bid race starts for £15bn schools framework refresh

DfE throws framework open to more contractors
1 day ago

Berkeley’s £600m Borough Triangle project approved

Controversial scheme features two towers of 38 and 44-storeys
2 days ago

London Mayor calls in blocked 600-bed student scheme

Refused 20-storey London PBSA block may still be built
1 day ago

HG to build 500-bed London Stratford student scheme

Work will start later this year subject to gateway 2 safety approval
2 days ago

Arrest after pedestrian death on construction site

Tragedy during site preparation works for new Wigan car park
1 day ago

British Steel threatens closure of Scunthorpe blast furnaces

Chinese owners say sectional steel and rail supplies will be maintained
2 days ago

Planning green light for Sheffield warehouse site

Existing factories to be demolished in new scheme for Rula Developments
1 day ago

New rail property company to unlock land for 40,000 homes

First four sites released in Newcastle, Cambridge, Manchester, and Nottingham
2 days ago

Drainage specialist Subscan files administration notice

Specialist employing 131 people files court notice
2 days ago

Four win Network Rail £300m engineering design deal

Eastern region deal will include design for Northern Powerhouse Rail
2 days ago

Funding go-ahead for Banwell bypass after fresh cost hike

Galliford Try contract rises £14m to £64m after final design change
3 days ago

Graham wins Southport £75m Marine Lakes Centre

Firm replaces Kier which parted ways with backer Sefton Council
3 days ago

Chancellor unveils extra £2bn capital spend a year

Construction promised a defence dividend in military base and homes upgrade work
3 days ago

McLaren confirms subcontractor team on £135m warehouse job

Work starts on TN2 Gateway site in Kent.
3 days ago

Vistry profits slump after site costs reporting debacle

House builder launches internal whistle-blowing service in business culture review
3 days ago

Severfield chief to step down

Alan Dunsmore to leave structural steel group by end of June
3 days ago

Funding hurdle remains as Lower Thames Crossing gains consent

Government claims £9bn project may start in 2026 as private finance options explored
4 days ago

Mace wins £600m Euston Tower overhaul

1970s tower's foundations and core to be retained as floor plates extended
4 days ago

Summer start for main works on London green tower

Axa sanctions start at 50 Fenchurch Street 36-storey office block
3 days ago

Japan’s leading flats builder JVs with L&G for UK push

Partners plan to build over 1,000 rental homes in London
3 days ago

Wates submits plan for 1,000 homes Harrow council scheme

Former civic centre Poets' Corner site kicks off housing partnership
4 days ago

Morgan Sindall upgrades forecast for next 12 months

Overbury fit-out arm gets off to a flying start in 2025
4 days ago

Restructure underway at Henry Boot Construction

New management team restructures business after drop in turnover
4 days ago

Government pledges £2bn stop-gap funding for 18,000 homes

Funding avoids cliff-edge in social housing delivery before new grant programme agreed
4 days ago

Just two major new roads schemes to start this year

National Highways sets out one-year interim spending plan after RIS3 delay
4 days ago

Plans go in for £400m GRAHAM Manchester site

Demolition and enabling works underway with main construction set to start next year
4 days ago

Building safety levy rate set at up to £10,000 a home in London

Levy introduction pushed back a year to Autumn 2026 - list of new rates
5 days ago

BAM wins £100m revamp of Broadgate Tower in London

Front of tower 3-storey extension to use cross laminate time and re-used steel
5 days ago

Contractor services