Your BESA ISSUE 2 interactive

A Issue 2 BUILDING ENGINEERING SERVICES ASSOCIATION YOUR Getting the most from your association New ways to narrow the skills gap Also in this issue BESA helping businesses get the most from BIM P9 UK tops global refrigerant reclaim charts P12 Construction Leadership Council P18 Pace quickens on Indoor Air Quality P21 www.theBESA.com @BESAGroup BESA Group

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BESA chief executive Paul McLaughlin Welcome YOUR BESA - ISSUE 02 In this issue: MEMBERSHIP P4 PRESIDENT’S PERSPECTIVE P7 TECHNICAL NEWS P8 SKILLS & EDUCATION P14 LOBBYING P18 Paul McLaughlin SUPPORTING YOUR BUSINESS P22 Keep calm as EU MEMBER SPOTLIGHT P25 WORKFORCE P26 arguments boil over EVENTS & AWARDS P29 There is a lot of fear and hyperbole partners, particularly Germany, who regard How much progress on these issues surrounding the EU membership the UK as one of their most important export could we honestly say the UK would referendum, but the BESA chief markets. It points out that only 15% of our have made outside the EU? However, executive Paul McLaughlin urges overseas trade is with the EU and that our another important point to make on these members to keep a cool head. national security is not dependent on Europe, ‘technical’ issues is that the UK parliament but on our wider alliance within NATO. has already agreed that it would take a minimum of two years to unravel EU It is absolutely NOT the Association’s Obviously, in any such politically charged treaties in the event of a vote to leave in place to tell members how to vote in the debate, both sides take up polarised and June; so the benchmark for energy and EU membership referendum on June 23 entrenched positions and present worst case carbon saving set in Brussels would remain and we would never presume to do that. scenarios to strengthen their arguments. our benchmark until at least 2018. However, we do have a duty to take a cool, dispassionate look at the facts on behalf of Many members of the BESA are subject So, if I am allowed to urge members of the members to help them make up their minds. to the stresses and strains of the wider BESA to do one thing, it would be to look economy either directly or through their carefully at all the facts and relate those facts As business people, members of the BESA supply chains. Many, similarly, feel over- to your own businesses before making up will have been drawn to the CBI’s headline burdened by the Red Tape that emanates your minds. I can assure you that is exactly grabbing claims about the implications of from Brussels and feel they would be what we will be doing here at the BESA ‘Brexit’. Apart from saying that 80% of its better off without it. headquarters and, as in all such matters, our members would prefer to stay in (only 5% technical and public affairs experts are always of 773 members surveyed were clear that However, it is only fair to point out that available to answer your questions and to leaving would be better for them and 15% many, if not all, of our most effective act as a sounding board for your concerns. were unsure); it added that leaving the EU environmental and sustainability initiatives “could blow a £100bn hole” in the economy have come about as a result of and cost up to 950,000 jobs by 2020. European Directives. For example, the Energy Performance of Buildings “Have your say and take Yet, the Leave campaign has made a Directive (EPBD) has been a driver part in our Brexit quick poll strong case for us – as the world’s fifth for energy efficiency and our sector on the BESA website.” largest economy – being perfectly capable is reaping the benefit, particularly of standing on our own two feet and in terms of retrofit work and the roll Paul McLaughlin negotiating trade deals with our largest out of new technologies. BESA chief executive 3

MEMBERSHIP Talking the talkg What does it mean to be a member of the BESA? The industry is going through a period of intense change. At the BESA, we are acutely aware of the importance of keeping pace with that change and ensuring we remain relevant and valuable to all of our members and continue to lead from the front. Our members have the advantage of Galvanised Our new BESA identity might look like being part of a sector leading organisation a minor ‘tweak’, but it clarifies who that has 111 years’ worth of history The specialist skills of BESA members are and what we are. It also marks a new behind it and has faced up to many of the in high demand, but they can’t afford to start and a new mission to ensure challenges before – on both technical and take on work at any price – and cash flow our members remain at the heart of commercial fronts. is king, which keeps building engineering late payment at the services; and building As the HVCA we prided ourselves on top of our agenda. Regional meeting engineering services helping to set the commercial and political This is one area where at the heart of the agenda for the sector; working across the Association is growing UK economy all our member specialisms to produce fighting harder than as well as at the heart technical specifications and best practice ever and making real of your clients’ world. guidance; and providing invaluable legal, progress. Together with contractual and commercial support to a group of members, Our over-riding member companies. While the industry we recently galvanised strategic aim is to may have gone through seismic changes in action from over 30 of your local MPs that continue to lead on technical matters. Earlier recent years, those fundamentals continue led to a high profile parliamentary debate this year we appointed Tim Rook as our to apply under our new BESA banner. with the Minister for Small Business Anna new technical director with a wide ranging Soubry leading to further progress on the remit to ensure the specialist expertise of There have been some encouraging signs campaign to reform payment retentions. members is clearly reflected in our technical for the sector so far in 2016, but that does work and their high quality, professional not mean things are all plain sailing. At a time This is one of several areas where standards get the credit they deserve. like this the industry looks to its professional members’ feedback keeps us focused on bodies for guidance and judgement – and what is important to you as businesses We have also added a number of new the Association has a unique opportunity and which has led to us refreshing the functions including specialist and to lead change from the front. Association’s purpose. technical LinkedIn Groups to help gather BESA Group 4 Companies: PUBLICATIONS TRAINING

members’ experiences and ensure you support this we are raising awareness of The information it produced is proving are in touch with developments that are BESA membership as a ‘Badge of Quality’. invaluable to initiatives for tackling the relevant to your specialism. A Specification Sales Manager is being industry’s growing skills shortages and has recruited for the London area, in response now been broken down on a regional basis Collaboration with other industry bodies to members’ feedback, to raise the profile of so that training and recruitment efforts can be remains crucial and can add significant the BESA brand and ensure that specifiers more closely tied to particular local needs. This value for members. For example, we are always consider our members when is being backed up by groups of members spearheading a sector-wide initiative on looking for quality contractors. in each region formulating skills action Indoor Air Quality with CIBSE, BSRIA, the plans supported from BESA headquarters. Construction Products Association and others. We are fortunate, and unusual among trade This has been timed to coincide with the bodies, in that we have a strong regional And don’t forget, you now have access growing alarm over rising levels of outdoor presence through our Regional Managers, to a brand new members only area air pollution leading to increased demand who spearhead our communications and of the website – if you have not yet for members’ expertise to protect building bring many of the messages outlined above received your login details please occupants from the worst health threats. directly to you. We are currently reviewing contact Amanda Ings on 01768 861701 the format and role of regional meetings to or [email protected]. We attend many industry events to increase ensure they provide the most targeted and the visibility of the BESA brand; working relevant information for you and are used You should be hearing from your regional right across our group of companies to communicate wider industry matters manager very soon, but if you would like to promote offerings like Refcom – for tailored to your specific, local needs. to make the first move and get in touch refrigerant handling and management; with them – please find their details below and SFG20 – the industry leading tool for For example, the Association carried building service and maintenance. out wide-reaching research into the They would love to hear from you because, industry’s future skills needs leading to as has been the case for over 111 years, the Major contractors are encouraged to the publication of our Labour and Market BESA is an association owned by its members specify the use of BESA members and to Intelligence (LMI) report late last year. and your concerns are our concerns. Meet your regional team SCOTLAND & NORTHERN REGION NORTHERN IRELAND Manager: Neil Ashford Head of Scotland & 01535 661567 Northern Ireland: Iain McCaskey 07795 010061 0131 445 5580 [email protected] 0786 079 4734 [email protected] SCOTLAND & EASTERN COUNTIES, NORTHERN IRELAND EAST MIDLANDS & Assistant National Executive for Scotland HERTFORDSHIRE REGION & Northern Ireland: Zanna Tweedie Manager: Mike Malina 0131 445 5580 0115 888 3080 07584 684728 07720 41871 [email protected] [email protected] LONDON & SOUTH CYMRU/WALES EAST REGION Manager: Andrew Marchant Head of Regional 01446 790159 Management: Tim Acland 07795 394499 01233 840531 [email protected] 07762 240440 [email protected] SOUTH WEST AND WEST OF ENGLAND & SOUTH WEST LONDON WEST MIDLANDS REGION & WESSEX REGION Manager: Steven Smith Manager: Sophie Cox 01454 414442 01784 488232 07801 735523 07583 079359 [email protected] [email protected] The BESA puts members at the heart of building engineering services 5

KSB Ltd acquires Somerset based Smedegaard Ltd On the 23rd December 2015, KSB Ltd acquired Smedegaard Ltd based at Bridgwater. The company has been established in the UK since 1983, and is known for manufacturing circulating pumps used in heating systems, booster sets and pressurisation units. The acquisition of Smedegaard Ltd has given KSB Ltd access to a wider scope of technology in the UK building services sector. This being thanks to the circulating pumps which are also able to meet the increasing energy efficiency requirements of the ErP Directive. Distributed through KSB’s and Smedegaard sales organisations in the UK, these products are now reaching a broader customer base. Fundamentally it is Smedegaard Ltd’s ability to offer the customer a complete package of equipment, specifically designed for the Building Services industry, together with the product being of the highest quality and backed by technical expertise that will continue to ensure a steady increase in KSB UK market share in the Building Services sector. SMEDEGAARD PUMPING TECHNOLOGY – YOUR ENERGY SAVING PUMPING PARTNER 01278 458 686 [email protected] www.smedegaard.co.uk BESA Group 6 Companies: PUBLICATIONS TRAINING

PRESIDENT’S PERSPECTIVE BESA hit by double tragedy Since my last BESA magazine article, the Association has been rocked by a double blow with the untimely deaths of two major figures from our past who were still playing important roles in our present and future. You are never too strong or too old to In the late 1980s, Mike served shed a tear, so I am sure the following as chairman of the working will muster many emotions. However, party that produced the first I hope that the first instinct will be to generation of SFG20, the ground- celebrate the lives, friendship and many breaking standard maintenance achievements of two very special people, specification for building services. who made such massive contributions to our industry and were guiding lights Gareth to each of us as individuals. joined ductwork In February we lost former President specialist and FM pioneer Mike McCloskey at the E Poppleton age of 66 and in March another former & Son Ltd as and epitomised the term ‘presidential’ President and ductwork stalwart Gareth an installation because they provided leadership Vaughan died aged just 62. assistant in and calm council at a time when the 1973, and rose Association needed them most. Mike served through the as President Gareth Vaughan ranks to become Trade bodies like ours are built up over in 2006/7 and managing generations by dedicated people like Mike Gareth in 2008/9 – director in 1989. He was chairman of and Gareth. Although we are now going both carrying out the Association’s North West Region through a period of major change and their duties with from 1994 to 1996, and became a modernisation, such things are cyclical, immense charm member of the Council, and of the whereas the importance of the volunteers and panache to Executive Committee of the Ductwork who selflessly provide their time and the long-term Group, in 1997. In the same year, he energy to our work, simply for the benefit of the joined the Membership Committee benefit of the industry, are our lifeblood. Association and and was elected its vice chairman in Mike McCloskey So, at a time when we our sights are all its members. 2004. He was chairman of the Ductwork Group for three years from 2000. all fixed on the future and what it Mike spent 30 years with national might hold, it is always important to contractor Lorne Stewart – latterly as However, simply listing out pause and look back to the legacy managing director of the company’s their considerable professional and example of the McCloskeys and maintenance division – before achievements does not really do justice Vaughans of our world. becoming a director of Argent FM. He to these fine men. They were both became a member of the executive far more than the sum of their parts Thank you Mike and Gareth. committee of the BESA (then the HVCA) in 1985 and of the Council from 1992 to 2015. He was president of GCP “Mike and Gareth were both far more than the sum of their parts Europe, the international umbrella body and epitomised the term ‘presidential’ because they provided leadership representing building engineering and calm council at a time when the Association needed them most.“ services, from 2012 to 2014. Jim Marner BESA President 7

TECHNICAL NEWS BESA focuses on narrowing ‘performance gap’ for modern buildings A report from the government supported agency Innovate UK has highlighted the widening ‘performance gap’ in modern buildings and urged the industry to focus on improving airtightness standards and simplifying methods for controlling building services systems. In a study of 49 ‘leading-edge, modern Innovate urged designers, constructors the annual emissions of 90 homes for buildings’, including supermarkets, and contractors to make use of the each of these buildings’. offices, schools and health centres, information to improve future building it found that modern non-domestic performance. Narrowing this ‘performance gap’ buildings ‘routinely’ use 3.5 times the is a key focus of the BESA Technical amount of energy they are designed ‘The range of energy use per square Department under the leadership of to consume and rarely live up to metre across the projects was very Tim Rook and is the subject of the performance expectations. wide – from 28 to 367 kWh/m2 for Building Services Summit 2016 being electricity, and from 0 to 316 kWh/m2 co-hosted by the Association, the ECA It also revealed that carbon emissions for fuel,’ an Innovate statement said. It and the Building Controls Industry were, on average, 3.8 times higher added that the average electricity use Association (BCIA) on November 23 at than predicted. Just one of the studied across the buildings was 103 kWh/m2; the British Library in London. buildings had ‘actual emissions that while the mean for fuel was 92 kWh/ matched the design estimate’. m2. Average total carbon emissions Look out for details at: were 75.2 kg CO2 per square metre www.theBESA.com/events The report analysed data from per year ‘or an average equivalent to Innovate’s £8 million Building Performance Evaluation Programme and concluded that many projects had difficulty integrating new technologies, in particular building management SFG20, the definitive standard for planned systems (BMS). Many also had problems maintenance, is an invaluable tool for with maintenance, controls and increasing the efficiency of buildings. metering on biomass boilers, solar Find out more at www.sfg20.co.uk panels and solar water heaters. BESA Group 8 Companies: PUBLICATIONS TRAINING

Helping businesses get the most from BIM BIM BESA’s commitment to and streamlining business’s project functionality the adoption of Building processes and commercial processes, Information Modelling (BIM), BIM will help eradicate the flawed for . practices that lead to continual which can help businesses redesigns and alterations with across the supply chain improve additional costs and delays. Instead efficiency and profitability, of build then design, we’ll have what Since April the government has has been strengthened by the we should have, which is design then required all public-sector work to be appointment of chief executive build. BIM will help ensure projects subject to the Level 2 BIM method Paul McLaughlin to the role are designed fully at the beginning, of working, which demands that and only once, so that contractors of vice chair of the Build UK can go on site knowing exactly building information is developed in a collaborative 3D environment. BIM Group. what the design is, and so that there’s more opportunity for off-site SFG20 maintenance specification service has This gives BESA a voice at a body construction.” been broadened in its functionality to accept building designs in IFC format imported from which brings together 27 of the largest “At the same time as helping BIM authoring software. This means that Main Contractors in the construction contractors improve their own ongoing maintenance costs in the new build supply chain and 40 trade associations efficiency and profitability, BIM also process can be based on the SFG20 standard representing more than 11,500 improves the likelihood of delivering from the point that initial CAD drawings are Specialist Contractors. clients exactly what they want and constructed, rather than later in the process Paul commented: “BIM is not an IT expect from a project. These are or after it. This further enhances SFG20’s project, it is about business improvement. the benefits we will be focussing value to clients, consultants and contractors My focus is to keep the discussion above on at the BESA and in partnership as a means of saving time, energy and the technical details and move BIM into a with Build UK to encourage the money. Look out for the launch of BIM in the business arena - how we can get CEOs of understanding and adoption of BIM.” next few months on www.sfg20.co.uk large companies involved and how BIM can help address their issues.” C5’s BIM Legal Forum takes place on 8-9 June at “What’s important is BIM’s potential the Grange City Hotel, London and BESA Members to deliver cost savings and process receive a 50% discount off the registration price. For efficiencies through better collaboration further information visit www.theBESA.com/events. across the supply chain. By simplifying 9

TECHNICAL NEWS Sharing technical BEST practice Recent technical Recent technical developments – developments – Energy Efficiency HFC Refrigerants A new EU directive has come into effect relating to Energy Efficiency. Our most recent technical bulletin The Energy Related Products directive Particularly relevant for BESA members is concerns the phasing down of HFC is designed to phase out inefficient the step increase in product specification Refrigerants and the 2015 regulation products and make it easier for and efficiency for non-residential ventilation controlling the amount of HFC that consumers to find energy information as units. There will be another step increase in can be placed on the EU market. well as providing guidance towards more required efficiency in January 2018. energy efficient products. To comply with the new F Gas For information on the specific Regulations, a first step reduction As of January 2016 it is now UK law that requirements, please login to the BESA of HFCs by 7% must be achieved in all new installed products meet new Members’ Area to access the technical 2016. There is then a “hidden step” minimum requirements for efficiency. bulletin giving detailed specifications. in 2017 as all imported pre-charged equipment must use HFCs from the Future focus - the EU quota from 2017 onwards. Under business-as-usual this will add a burning issues in further 11% to EU demand, making fire safety the cut equivalent to 18%. In 2018 the cut is 37%, however, the pre-charged imports must be taken into account BESA will soon be launching a fire making the cut equivalent to 48%. safety campaign in collaboration Overall, the regulations target high with the ECA, to help members GWP refrigerants, in particular R404A comply with the Regulatory Reform Order (Fire Safety) 2005. and R507. To ensure you comply with the Through a series of bulletins, posters, videos, l Working with Passive Fire protection requirements do not install any new and events at health and safety focus measures such as firewalls and systems with R404A R 507 or any forums, we’ll be looking at issues such as: materials with fire-resistant coatings other high GWP refrigerants, for new l The roles of ducts and dampers in systems make use of a refrigerant smoke management systems l How to mark-up fire-resisting ducts to distinguish them from non-fire- with the lowest GWP possible, for l The need to allow easy access to rated ductwork existing systems, retrofit to a lower fire dampers for annual inspections GWP alternative, and finally, ensure l The required location, frequency and any R404A removed from systems is l The requirements of building fire-resistance of inspection hatches in recovered for further use. compartmentalisation to inhibit fire spread fire ducts to enable cleaning If there are any particular aspects of fire safety you would like to see covered in this campaign, please email [email protected] To access the full technical bulletins, login A number of active discussion groups have now been set up on LinkedIn to enable members to discuss to the Members’ and progress key technical issues. There are currently 10 groups, including indoor air quality, heating Area and visit and plumbing services, as well as one for the refrigeration, air conditioning and heat pump group. the Technical section within the Some of the recent topics for discussion include plans to introduce a new SFG20 maintenance schedule Resource Centre. regarding indoor air quality, guidance on biomass flues and CEDA ventilation document. If you would like to get involved please follow BESA Group on LinkedIn or email [email protected]. BESA Group 10 Companies: PUBLICATIONS TRAINING

Risk without Health and harm can be safety: new an offence regulations The new Sentencing Guidelines for judges and magistrates and tougher in England and Wales, for all sentences handed down after sentences 1 February regardless of the date of the offence, cover any health and safety offences committed by an organisation or an individual (as well as corporate Significant changes made in recent months to health and safety manslaughter and food safety/ legislation have implications for building and engineering services hygiene offences). businesses of all sizes, from large corporations to sole traders. Crucially, the Guidelines extend the The Construction (Design and account for more than two-thirds of fatal scope of sentencing beyond health Management) Regulations 2015 (CDM accidents in the construction industry. and safety violations resulting in 2015) came into full effect last October fatalities, to all health and safety after a six month transitional period and CDM 2015 is also intended to simplify safety offences. There does not need to be tougher new Sentencing Guidelines for management, after criticisms that CDM 2007 actual harm, only a risk of harm, for health and safety offences came into was overly bureaucratic, and to establish more an offence to be committed. force on 1 February 2016. explicit requirements for “competence.” All projects must have workers with the right skills, The Sentencing Council identified CDM 2015 applies to new build, demolition, knowledge, training and experience; contractors that clearer guidelines were refurbishment, extensions, conversions, providing appropriate supervision, instruction needed to achieve a more repairs and maintenance work - and, unlike and information; and a written construction consistent approach by judges, CDM 2007, encompasses domestic as well phase plan. In addition, where more than one and that fines imposed on larger as commercial building projects (where contractor is involved in a project (commercial more than one contractor is engaged). or domestic), a principal designer and principal corporations were perceived as The Regulations apply to sole traders, contractor must be appointed and there must too low to deter future offences. self-employed workers, and individual be a health and safety file. The responsibilities The new Guidelines aim to impose businesses carrying out, managing or of commercial clients are also defined - and penalties that will have a real controlling work, as well as defining the increased - under CDM 2015. economic impact on offenders, health and safety duties of employed with higher fines expected. workers. One aim is to address concerns BESA Training will be hosting a CDM workshop Sentencing will be decided on a that smaller sites, where fewer than 15 on 14 June at The Palace Hotel, Torquay. To balance of harm, culpability and people are working, disproportionately book, please email [email protected]. the offending business’ turnover. BESA’s support and represents a key element in the can be downloaded from the independent competence assessment of CDM 2015 regime with which all existing and Sentencing Council website. To view the CDM and Sentencing Guidelines aspiring BESA members must comply. presentation, please login to the Tim Rook, the BESA’s technical It’s essential to understand CDM 2015 BESA members’ area. To find out director, commented: “Adherence and its implications.” when the next round of Health and to health and safety best practice is More information about CDM 2015 Safety Focus Forums, in collaboration crucial to all reputable businesses - can be found on the HSE website. with the ECA, take place visit our Definitive Sentencing Guidelines events page on the BESA website. 11

TECHNICAL NEWS Success for UK = success for Refcom The UK leads the world in refrigerant reclamation, according to a major report published in the US. The Air Conditioning, Heating and Register has evolved to cover fluorinated looked into the effectiveness of the Refrigeration Institute (AHRI) studied refrigerant gases, which if released to various recovery schemes and recorded refrigerant management and recycling atmosphere have a global warming best practice from manufacturers, programmes worldwide and found potential significantly higher than CO2 contractors, end users, and reclaimers. that the UK had the highest reported and which are now regulated under the It looked at how and where refrigerant rate of recovery at between 65 and European F-Gas Regulations. recycling happens, and the amount of 92% - ahead of other major economies refrigerants ultimately destroyed. including Australia, Canada, California, It has been a legal requirement since July 2009 for all businesses that install, the EU, Japan, China and Brazil. Japan was identified as destroying the maintain or service stationary refrigeration, highest tonnage of refrigerants per year As well as being a considerable air-conditioning and/or heat pump while Australia recovers between 35% environmental protection accolade for equipment containing or designed to and 61% of refrigerant – most of which the UK refrigeration and air conditioning contain F-Gas refrigerants to obtain an is destroyed. industry, this reflects very positively on F-Gas Company Certificate. the work of Refcom – the sector’s main Refcom was appointed by the government “This report marks the culmination of refrigerant handling register established to provide this mandatory service and the largest effort ever attempted to and managed by the BESA. works with the Environment Agency determine the refrigerant ‘lay of the land’ to ensure the regulations are properly on a global scale,” said Karim Amrane, Members of Refcom account for more the AHRI’s senior vice-president of than 80% of the total UK refrigerant enforced and reclamation carried out. regulatory and international policy. handling market so the vast majority of The BESA also offers a voluntary scheme UK data gathered for the AHRI report Refcom Elite, which goes beyond the statutory “The information it contains will be would have been as a result of the work minimum and encourages employers to invaluable as the world moves closer to of Refcom members. work to industry best practice and offer phasing down HFCs and replacing them clients a higher standard of technical service. over the coming decades,” he added. Refcom was created in 1994 in response to atmospheric damage caused by The AHRI report ‘Research Project 8018, To read the full AHRI report visit certain refrigerant gases. Since then the Review of Refrigerant Management Programs’ www.refcom.org.uk/refcom/news BESA Group 12 Companies: PUBLICATIONS TRAINING

Membership services to help you remain compliant The BESA Competence Assessment process is unique within the building engineering services industry. It evaluates both the health and safety standards, and the technical competence of a business. This gives you, the member, a competitive edge, demonstrating the quality of your work to clients and sub-contractors. Successful compliance with BESA’s scratch. BESA has a dedicated team of with KeyOstas to offer a dedicated Competence Assessment Scheme health and safety training advisers here telephone and email advice service is mandatory for membership, and to help. A member will be assigned their that is free of charge to members . ensures that as a BESA Member you are own personal adviser who will assist you KeyOstas have been providing advice demonstrating that you work to the in achieving full compliance. and guidance on health and safety since highest of standard and are worthy of 1984 and are renowned for their personal the BESA Badge of Quality. A further benefit of the BESA approach, flexibility and attention to Competence Assessment Scheme is the individual needs of clients. You can As your business evolves and as reduced duplication as you receive phone them on 01926 818821 or email requirements are updated, you may find Safety Schemes in Procurement [email protected]. you want a bit more guidance to ensure recognition at no additional cost. you policies and processes are up to As an association, our members are at For support or guidance with your the heart of everything we do so if you Health and Safety Assessment or have a problem, we have a problem so technical audit please contact our Health the best way to fix it, is to work together. and Safety Advisers on 01768 860452 or We want to demonstrate we have quality email [email protected]. members who are fully compliant in everything they do. To further strengthen our offer to members, BESA has recently partnered For further information regarding BESA’s Competence Assessment Scheme including quick guide downloads, please visit www.theBESA.com/competence-assessment-scheme. 13

SKILLS & EDUCATION Finding new ways to narrow the skills gap Skills shortages are a serious impediment to business growth in our sector, so innovative new strategies are coming along at just the right time, says Peter Rimmer. Demand for new workers in all sectors formal training, could now be offered qualifications since 2001, also shows there of the building engineering services apprenticeships or the opportunity to upskill. has been a general ‘de-skilling’ across the industry will rise over the next four sector in recent years with employers often years and could lead to significant skills The LMI also showed there was an only training up to Level 2 – usually for shortages in many areas. imbalance in training provision, with pragmatic reasons like cost and the need the number of plumbing to get people on site as quickly as possible. The BESA’s recent Labour apprenticeships far Market Intelligence exceeding the sector’s (LMI) report revealed needs. We, clearly, don’t Satisfaction the true extent of our have enough people, dwindling human capital. but equally, we don’t This does, however, create an opportunity However, it has also have enough people to ‘upskill’ many workers holding the basic produced some thought in the right places. So, green card to higher levels, which means, provoking conclusions could some of those with in return for doing a bit more training; and suggested a number Director of Employment Affairs plumbing qualifications they can significantly enhance their of potential solutions to & Skills, Peter Rimmer be moved across to plug earning potential and job satisfaction. this problem. shortages in other sectors? The three million new ‘Trailblazer’ For one thing it suggested that many Data from the Engineering Services apprenticeships promised by the workers, who came into the sector SKILLcard system, which has been used to government between now and 2020 during the recession and missed out on register operative training and professional will also play a key role. BESA Group 14 Companies: PUBLICATIONS TRAINING

There are five new apprenticeships proposed for the building engineering services sector including industrial and commercial pipefitting and ductwork at level 2 (installer) and level 3 (craftsperson); along with service and maintenance at level 3. There are also higher and degree level apprenticeships (levels 4 to 6) in development for the sector in response to shortages identified by business leaders in the Association. The LMI data has been broken down on a regional basis and this information was shared with members at regional meetings in March. As a result, a number of regions and branches are setting up locally-based task forces to understand the issues facing them in sharper detail and, with the help of the Association’s The effectiveness of this training model While LEPs will be unlikely to fund Education Committee, to develop local has already been demonstrated by the training directly, they might consider recruitment strategies. work of members of the Building Services supporting the return of training Engineering Employment Agency Alliance, provision in areas where it has fallen These strategies will address both the which is administered by the Association, by the wayside and where it can be needs of individual companies and who have worked with one particular ATA. demonstrated – using the LMI data – seek to tackle the industry’s wider, that such training provision is required longer-term manpower and skills The Association’s Loaning of Labour and would be supported by local requirements. Agreement could also be used to enable employers. contractors to share an apprentice with For example, some employers another employer. The BESA has also been working with might – not unnaturally – say that, City & Guilds to prepare the necessary as individual businesses, they could work materials for a programme of only afford to take on a small number Data experienced worker assessments, which of apprentices. However, there is no would lie at the heart of employers’ absolute requirement that apprentices We also have to overcome shortages of upskilling and retraining efforts. This must be employed by a contractor training provision in many areas of the will be launched very shortly. from Day One. There are organisations country caused by training providers called apprentice training agencies withdrawing courses during the recession. On all these fronts, the Association’s (ATAs) which will employ apprentices The regionalised LMI data could be very Employment Affairs and Skills and place them with host contractors useful as part of discussions with bodies Department are ready to help the to gain practical work exposure and such as Local Enterprise Partnerships (LEPs) regional task forces and the efforts of all experience for short periods. in highlighting areas of specific need. members to address their skills needs. This allows contractors, who feel unable to commit to directly- employed apprentices over the longer BESA Training is ready to deliver all your apprenticeship, term, to make a tangible contribution experienced worker and training needs. to the industry’s training effort, while at the same time considering the For further information please visit www.theBESA.com/training, potential of a possible apprentice on a email [email protected] or phone 0800 917 8419. “try before you buy” basis. 15

TRAINING Stay compliant New Apprenticeship with new site Levy on the way safety courses The time is fast approaching In England, each employer will receive To help members keep up to speed when our industry will be able to an allowance of £15,000 to offset against with changing site safety regulations, benefit from the Government’s new their levy payment, including employers BESA Training has launched three new Apprenticeship Levy. who have not paid the levy. Levy-paying courses for site supervisors and those companies will receive a digital voucher who recently started working within our When this comes into effect in April 2017, it to spend on approved apprenticeships, industry. These cover the amendments will be a crucial opportunity to start tackling to be used within two years or returned made to Construction Design and our skills crisis by attracting new people to to a central apprenticeship for other Management Regulations (2015). our industry companies to and by helping Who & What?: Example 1 - Levy payer use. Employers “As a sector, we need to ensure we are many already who are * compliant with these important changes,” said working in our Employer of 250 employees , committed BESA chief executive Paul McLaughlin, “and sector upgrade each with a gross salary of £20,000 would pay: to training BESA Training’s new courses, all recognised by their skills - sufficient Build UK, will help with this. We will also be and it won’t numbers of designing and delivering more courses soon cost smaller Paybill: 250 x £20,000 = £5,000,000 apprentices that help our members keep their CPD and companies will be able Compliance requirements up to date.” anything. to get back Levy sum: 0.5% x £5,000,000 = £25,000 more than The three new Site Safety courses are as follows: The they put in. Site Safety Plus Health and Safety Government £10,000 The Awareness (HSA) says it is Allowance: £25,000 - £15,000 = annual levy governments payment For those new to the construction and civil expected in Scotland, engineering industry, this one-day course provides that the levy *It is expected that in the Building services industry Wales and the actual number of employees per employer to hit a summary of health, safety and environmental “will support the Levy payment level will be circa 196. Northern issues on construction sites. This industry productivity Ireland have recognised qualification is CITB accredited. growth through the increase in training.” yet to announce the mechanisms by which It could raise £15bn from the largest UK employers in their countries will be able to Site Supervisor’s Safety Training Scheme employers over the next five years to pay take-up their apprenticeship entitlements. (SSTS) for an additional three million apprenticeship All three of these governments expressed This two-day course is for those who work on starts in England by 2020, with a “fair share” concerns in February that the levy could site in a supervisory capacity. It covers health (approximately undermine and safety law, supervisor responsibilities in £2.5bn) of levy Who & What?: Example 2 - Non Levy payer devolved controlling a site safely, timely intervention in income also policies on bad practice, site inductions, toolbox talks, distributed to Employer of 100 employees, apprenticeships and risk assessments. increase the each with a gross salary of £20,000 would pay: and are Site Supervisor’s Safety Training Scheme numbers of calling Refresher (SSSTS-R) apprenticeships for more This one-day course is for those who have in Scotland, Paybill: 100 x £20,000 = £2,000,000 details from Westminster. previously passed the SSTS or subsequent Wales and refresher SSST-R course. The refresher course must Northern BESA is be completed within five years but three years is Ireland by a Levy sum: 0.5% x £2,000,000 = £10,000 currently recommended because of changes in legislation. total of about establishing 500,000. £0 a model BESA Training also runs a three-hour Asbestos Allowance: £10,000 - £15,000 = annual levy which payment Awareness Course for supervisors and workers, The levy will be will help which costs just £65 (plus VAT), as well as a payable by all UK businesses range of bespoke courses designed precisely employers who identify to meet members’ needs. have annual the most paybills of more than £3 million, chargeable at a appropriate apprenticeships and recruit Prices start from £122 (plus VAT). rate of 0.5% of their pay bill. BESA estimates that apprentices. BESA also plans to negotiate For more details about these courses or companies in the building services industry delivery of apprenticeships with registered others, please email [email protected] will need a minimum of approximately 200 training organisations, monitor that or call 01628 607800. employees (including temporary workers) delivery on your behalf, and deliver before they are liable for levy payments. specialised training and assessments. BESA Group 16 Companies: PUBLICATIONS TRAINING

17

LOBBYING Construction Leadership Council The BESA has recently submitted a response to a study on labour models in the construction industry and the impact on skills and constraints for housebuilding and infrastructure. The study was undertaken by the Construction Leadership Council (CLC) following a joint request by Skills Minister Nick Boles and Housing minister Brandon Lewis. The CLC was set-up in 2013 to work Another discussion point asked what being on site, increasing the apparent between industry and government to are the barriers and enablers to greater cost, which cannot be claimed for by identify and deliver actions supporting use of off-site construction. We said the contractor until they are on site. UK construction in building greater that for off-site to be effective and used efficiency, skills and growth. more widely, design input is needed We pointed out that larger projects required much earlier than in the usual are starting to see more off-site build One of the main discussion areas was process. Traditional practice generally and as main contractors come to on what measures could improve leaves the M&E design to be done appreciate its value, so the sector incentives for capacity investment almost on a just-in-time basis, often will expand. Even so, it is less likely and new ways of working. BESA’s made worse by design variations made to penetrate the wider construction submission emphasised the need for well after the design phase has ended. sector as there is less analysis applied more innovation across the construction to cost benefits from process changes. industry, pointing out that it has been Additionally the M&E sector is Smaller M&E contractors would late in adopting many of the digital experiencing very low profit margins generally see off-site as a threat to and technological advances which which tend to necessitate a lean their business, as work they will not have transformed the productivity design process. The result is that fitters get to do and they are therefore of the automotive, aeronautical and often complete the “design” on the job unlikely to promote it to their clients. manufacturing industries over the most ie. as they fit the pipe, ductwork, cables two decades. etc. This can mean the detailed co- The consultation period finished on ordination design is not paid for. Off- 29th February and the CLC’s report We also called for fiscal incentives site requires this crucial design work and conclusions are expected in to encourage further investment in to be paid for up-front, in advance of late Spring. digitisation. This would encourage a positive culture and result in behavioural change, such that UK construction would be willing to For more updates on what BESA is accommodate the ‘digital disruption’ campaigning for on behalf of its members, that initially comes when bringing in please visit www.theBESA.com/lobbying. new technology and in turn delivers productivity and growth benefits. BESA Group 18 Companies: PUBLICATIONS TRAINING

Growth slowed, but members still optimistic The most recent BESA State of Trade members remained broadly optimistic coming six months, which is a similar level survey showed that the sector was about business prospects for the rest to the last survey. There was also a net in good shape even though the of this year with the survey recording increase in those employing agency staff, rate of increase in order books and a positive ‘net optimism barometer but the trend in employing apprentices enquiries slowed compared with measure’ of +24%. Companies with and trainees dipped slightly. the previous six months. turnovers over £20m seemed to have the most positive outlook. The BESA President Jim Marner said Tender prices also continued to rise in the next three years would be hugely the second half of last year, but also at a With the exception of the Ductwork challenging, but also potentially rewarding more sluggish pace, and problems with Group, all other specialist groups, regions, for building engineering firms. late payment eased slightly, but remain a sizes and business types remain optimistic serious impediment to business growth. about the future, although to a lesser “It is a very exciting time and the next three extent compared with the last survey, years will be full of opportunity,” added Mr Other key findings from the survey of which was carried out last summer. Marner. “The question is: Will we be ready members of the BESA included ongoing skills and will we be prepared to invest and take shortages – particularly design engineers, Employment levels remain healthy, the opportunity to grow and prosper.” quantity surveyors and planners; with according to the survey, but smaller rising labour costs the inevitable outcome. companies (under £1m turnover) are He added that the secret of future success not recruiting as many people as their would be the creation of a ‘smart’ workforce Although this all seemed to suggest larger counterparts. Overall, a net of “equipped with tomorrow’s skills, but that the market was cooling down, +37% expect to employ more staff in the operating in today’s marketplace”. MPs rally behind BESA late payment campaign MPs have called on the government retention payments in the most extreme be some form of retentions in order to make to speed up planned reforms to the cases. He added that a retention is sure “snagging” works were carried out to “outdated” practice of payment typically 5% of the contractor’s total price the client’s satisfaction. retentions that cost construction and often outweighs their entire profit SMEs more than £40m last year margin leaving many small businesses Anti-retentions campaigner Debbie following sustained campaigning close to financial collapse. Abrahams, MP for Oldham East and from members of the BESA. Saddleworth, said it was “hugely Vital disappointing” that after acknowledging In a Westminster Hall debate, Small the problem over 10 years ago the Business Minister Anna Soubry faced a Shadow Business Minister Bill Esterson, government had still not legislated on barrage of evidence revealing the extent who is MP for Sefton Central in Liverpool, retentions. She congratulated the Specialist of the damage caused by late payment added that cash flow was absolutely vital Engineering Contractors’ (SEC) Group for to SMEs after 30 Association members to sub-contractors “because of the low its relentless campaigning on all aspects of lobbied their local MPs. unfair payment to sub-contractors and for levels of capitalisation in construction being “the voice of this issue”. She heard that some contractors had been supply chains”. He said banks would not left “literally on their knees” because of lend to SMEs in the sector because large The Association’s legal and commercial unfair and late payment practices across the parts of their working capital are retention director Rob Driscoll said the industry was sector. MPs told the Minister that thousands monies and, by definition, unsecured. “as close as it has ever been” to solving the of sub-contractors were being “abused” retentions and unfair payment problem. The and left on the brink of bankruptcy despite Ms Soubry said they were “banging on an wrongful deduction of retentions is “crippling rising workloads across the sector. open door”, but urged them to wait for the the working capital of the supply-chain and current governmental review of retentions, stifling R&D, investment in technology, skills David Simpson, MP for Upper Bann in chaired by Crossrail chief executive and growth/productivity”, he added. Northern Ireland, led the debate by telling Andrew Wolstenholme, to report at the the Minister that some sub-contractors end of this year. She accepted the need for “The argument is not about the problem, had been forced to wait up to 10 years for reform, but said there would still have to but the best solution,” said Mr Driscoll. 19

BESA Group 20 Companies: PUBLICATIONS TRAINING

LOBBYING Pace quickens on Indoor Air Quality The Association’s Indoor Air Quality (IAQ) Group has stepped up its work in recent months to reflect the growing national publicity about air pollution in general. In particular, a report from the Royal Colleges to the new report, which also cites and maintenance tasks for SFG20 of Physicians and Paediatrics sparked huge growing evidence of harm to children’s specifically covering IAQ. It is also media attention when it revealed that health and intelligence. investigating a joint research project indoor air pollution caused or contributed with Kings College, London to study the to 99,000 deaths across Europe in 2012. It points to emissions from faulty boilers, correlation between outdoor pollution gas cookers and heaters, as well as and IAQ. This research was unusual in that it made irritant chemicals from new furniture, direct reference to the impact of indoor air fresheners and household cleaning As a key issue for BESA, we will be doing air quality (IAQ) on human health and products as contributing to rising more to raise the profile of indoor air premature death rates. The vast majority health problems inside well sealed quality issues and the role our members of air pollution studies only take outdoor buildings. House-dust mites, mould can play in improving the situation. contaminants into account. and dander from pets can also damage To this end we have partnered with health, the report said. YouGov to carry out research to form Both colleges called for more specific the basis for some high profile press research to be carried out to deepen The BESA Group has formed a technical activity. Look out for more information understanding of the key risk factors sub-committee to produce new service coming soon on www.thebesa.com. associated with poor IAQ and its causes, but pointed out that it was already apparent that increased levels of airtightness were adding to a growing problem. “Indoor and outdoor air pollution causes at least 40,000 deaths a year in the UK Indoor and outdoor air pollution causes and costs the economy £20bn.“ at least 40,000 deaths a year in the UK and costs the economy £20bn, according 21

SUPPORTING YOUR BUSINESS How to get started on social media for your business Social media networks are valuable resources for businesses of all sizes looking to promote their brand and products to do list! online. Here are some useful tips of how to set up a LinkedIn company page and Twitter account for your business. Every element of your Twitter page should reflect your business identity and brand. to do list! Your Twitter @Username In order to create a LinkedIn company page you need to Also known as a Twitter handle is your unique identifier. It can contain up to 15 characters and should ideally be already have a personal LinkedIn account set up. your business name so people can easily find you. When logged in go to Interests at the top of the page and choose Companies from the drop-down menu. Your profile photo Click create a company page and enter your company’s official This should be a visual representative of your business so name and your work email address, and press continue. your company logo is perfect. Recommended image Enter your company information, include a detailed description, size is 400x400 pixels. your specialities, key products, services and what makes your Your bio business unique. Upload your company logo as your profile image. You have 160 characters to let people know what your business is about. Include useful information, such as Recommended size is 100x60 pixels. location or business hours, and a link to your website. Create an eye catching banner for your page, include key brand Your header photo messages and bold graphics. Your company page should be used as a discussion forum This should be a billboard for your business. Feature your rather than an advertising platform. Try to encourage industry latest products, use a graphic with text or use images discussions and thought-leadership content. of employees. Change this periodically to launch new products or latest offers. Encourage current employees to add the company to their personal profiles. Add a link to your page in your email signature, newsletters and blogs. Pinned Tweet Keep an important Tweet at the top of your timeline by pinning it there. Click on the “more” option on the Tweet you want to pin and select “Pin to your profile page.” Use Now that you are all set up and ready to go, this feature to make sure visitors to your profile can’t why not follow us on Twitter @BESA Group miss your latest news, products, offerings, or events. or find us on LinkedIn as BESA Group. BESA Group 22 Companies: PUBLICATIONS TRAINING

Confusion reigns over special VAT rate The Association has vowed to keep lobbying for a lower rate of VAT to be retained on energy saving measures (ESMs). Are your projects Currently, there is considerable confusion about whether the really protected UK’s special 5% rate can be saved in the face of a ruling from the European Court of Justice that it is illegal. against flooding? As this publication was going to press, it seemed that our government was ready to defy that ruling and retain the lower charge for measures including draught proofing and insulation, solar panels, heating and hot water controls, ground With dramatic and damaging flooding increasing in frequency in and air source heat pumps, small combined heat and power the UK, it is more important than ever for sub-contractors to guard systems, wind turbines and biomass boilers. against financial losses if a project is disrupted by adverse weather. The 5% rate can also be claimed on central heating work This usually means choosing the right ready-made contract before carried out on behalf of charities, the elderly and families starting a job. You’ll find plenty of helpful information about this in on benefits. However, it was expected that the UK would the new flooding advice sheet on the BESA website. be forced to revise the rate upwards to the standard 20% from this August – adding considerable additional cost to It’s crucial to be aware that the two standard forms most commonly used energy saving improvement projects – because the European to cover such risks, JCT and NEC3 Sub-Contracts, allocate risks differently. Commission believed the reduction was being misapplied as to do list! Under JCT, a sub-contractor can apply for a time-extension (but not part of a bid to reduce fuel poverty. material costs) because of “exceptionally adverse weather” but will The Labour party has tabled an amendment to the new have to provide evidence that the weather was “exceptional,” which Finance Bill empowering the Treasury to retain the 5% rate is open to dispute. Flooding is defined as a “Specified Peril,” which and this was supported by the Prime Minister. However, the means sub-contractors can apply for a time extension and won’t picture remains confused about whether the EC will back be liable to replace any site materials. Check contracts carefully, down on this and will probably not be resolved until after the however, to ensure that “exceptionally adverse weather” hasn’t been EU Referendum on June 23rd. removed from qualifying as a “Relevant Event”. “Retaining the low rate of VAT would be a very welcome With NEC3, “exceptional weather” such as flooding can qualify a sub- move,” said the BESA chief executive Paul McLaughlin. “There contractor to extra time and costs if their works are affected - but the was general consternation when the European Court forced weather in the month/s of the disruption must be shown to occur on our government into a corner over special rates of VAT. So it average less frequently than once every 10 years. It may also be possible, is pleasing to see that all the political parties seem ready to with JCT and NEC3 sub-contracts, to apply for an extension of time if fight for a measure that supports our industry’s vital efforts disruption arises from a flooding event off-site, such as at your office. to narrow the performance gap by driving take up of energy reduction technologies and techniques.” For the complete Flooding Guidance document, please visit the Legal and Commercial section of the BESA Members’ Area of the website. Tackling industry image and workforce diversity How do we address the skills shortage facing construction and building engineering services? That’s the question being looked at by Build UK’s image “The other challenge is workforce diversity. To attract leadership group, where BESA’s representative is the the best talent we can, we need to cast the net as wide Group Marketing Director of Gratte Brothers, Angela Hills. as we can. That means appealing to more females, to We are pleased to be sponsoring National more ethnic groups, and - with the increasing amounts Angela explains: “One of the barriers to people entering of off-site pre-fabrication - to the disabled. There’s Women in Engineering our industry is its image. People tend to think of the much more diversity now than there was 25 years ago, Day, for further crafts and the operative roles, but they don’t realise information please visit there’s a huge range of other career opportunities. It’s and I’ve not witnessed any prejudice in our industry, www.nwed.org.uk. but there’s a heck of a way to go.” not widely appreciated that engineering services is driving Building Information Modelling and 3D design, It is these two key challenges, image and diversity, that or that there are fulfilling careers to be had in project BESA’s representative will be helping Build UK tackle. management. We need to change this perception. We’ll keep you updated as initiatives take shape. 23

ELECTRO-GRAPH LTD T: 01384 378436 www.eguk.com F: 01384 392542 Signs & Labels E: [email protected] Valve ID Discs & Chains Engraved Plant Labels Health & Safety Signs Print Labels on the Roll Vinyl Signs / Labels Pipeline Marking Tapes PROMPT SERVICE TRADE Click Frames for Valve charts & GOOD PRICES ENQUIRIES FROM ACCOUNT 177 Lower High Street, Stourbridge, BESA MEMBERS WELCOME West Midlands DY8 1TG BESA Group 24 Companies: PUBLICATIONS TRAINING

MEMBER SPOTLIGHT BESA Scotland chair puts safety first Improving indoor air quality (IAQ) and reducing fire risks through professional ductwork cleaning are top priorities for the new chair of BESA Scotland Simone Hart Sibbald. The managing director of Stirling-based Perfect Service Solutions (PSS) also plans to work on improving the safety of operatives by impressing on the construction industry the importance of making sure building ventilation systems are built with ease of access for maintenance in mind. “It is essential that building ventilation systems are constructed to ensure filters and other parts requiring cleaning or replacement are readily accessible,” said Simone. “As I’m not from an engineering background, being “There is a real need to make sure ducting is not dangerous a member of BESA has really added depth to my for our members to access as they go about their work.” knowledge and understanding of the sector.” She described her new role as “a great privilege and Chair of BESA Scotland Simone Hart Sibbald responsibility” and said she intends to be “a strong advocate” for all BESA members in Scotland during her time in office. Her company, which employs 30 staff and provides specialist It all seems a very long way from Simone’s entry into deep cleaning services and ventilation solutions for the food business at the tender age of 14 when she began working and FM sectors, joined the BESA (then the HVCA) in 2007. in administration and sales support for her father’s industrial Simone, who was vice-chair of BESA Scotland from 2014 cleaning company. After three decades of “challenging, but to 2016, believes her involvement with the Association has always interesting times”, she now heads up a company helped her own personal development. with a strong professional reputation servicing some major private sector clients including Sodexo, Babcock Marine and Bannatynes, as well as a number of public sector organisations. PSS is on the ‘High Growth Pipeline’ supported by Scottish Enterprise and earlier this year Simone graduated from the Growth Advantage Programme (GAP) developed by the Hunter Centre for Entrepreneurship at Strathclyde Business School. She was among a cohort of 20 entrepreneurs taking part in the 10-month programme designed for managing directors and chief executives of businesses with a yearly turnover of Understanding £500,000 or more. The first of its kind in Scotland, it combines research-based ‘useful learning’, delivered by the School’s academics, with insight from influential Scottish entrepreneurs “As I’m not from an engineering background, being a including Sir Tom Hunter. member of BESA has really added depth to my knowledge and understanding of the sector,” she said. www.perfectservicesolutions.co.uk Ten-year-old PSS has already had a headline capturing year having also been shortlisted for SME of the Year by Business Women Scotland and being named Best Small Business 2016 in the third annual Forth Valley Chamber of Commerce Awards. 25

WORKFORCE Taxation of Travel The new National Living Wage and Subsistence From the beginning of April 2016, the Government’s new National Living Payments Wage (NLW) became law. As part of its ongoing programme This provides that all working people Employers will need to communicate of step-by-step legislation to clamp aged 25 and over and not in the first year pay changes to any staff affected by the down on the various payment models of an apprenticeship are legally entitled introduction of the NLW. involving ‘bogus self-employment’, to be paid, initially, at least £7.20 per In particular, employers who have adopted HMRC have introduced changes, hour. This generally means everyone the provisions of the Environmental from 6 April 2016, which will prevent who is not self-employed. Engineering Industry Staff Salary certain temporary workers from Employers will need to make sure they Agreement and with staff in grade A may being able to claim tax relief or are paying their staff correctly from 1 need to ensure compliance with the NLW. disregard for National Insurance April 2016, as the NLW will be enforced as contributions (NICs) on the travel and strongly as the National Minimum Wage. For those aged under 25, the National subsistence expenses they incur in Minimum Wage (NMW) continues to ordinary home-work-home travel. The penalty for non-payment will be apply. From October 2016 the new NMW 200% of the amount owed, unless the hourly rates for workers aged 21-24 years These new restrictions will apply to arrears are paid within 14 days. will increase from £6.70 to £6.95, 18-20 workers who: years will increase from £5.30 to £5.55, The maximum fine for non-payment l are employed through an employment will be £20,000 per worker. and 16-17 years will increase from £3.87 intermediary, such as an umbrella to £4.00. For apprentices under 19, or company, a personal service company, or Employers who fail to pay will be banned 19 or over who are in the first year of an employment business (’labour agency’); from being a company director for up to apprenticeship, the NMW will increase 15 years. from £3.30 to £3.40. l supply personal services (i.e., principally, their skills or labour); and l are subject to (or to the right of) Operative National Agreement the supervision, direction or control of any person as to how the workers and Pension Provision concerned do their jobs. If you use the BESA National Agreement as the basis of the contracts of The measure is aimed at preventing agency workers and their employers employment of your hourly paid, site-based Operatives, you will be aware that from benefitting from tax relief and NICs a contractual entitlement to participate in an employers’ contributory pension disregard for home-work-home travel scheme was introduced into the terms of the Agreement in October 2010. expenses. It is an established principle Currently standing at 4½% of basic pay, website: go to www.thebesa.com/ in the UK tax system that people should the pension contribution to be made by wages-and-salaries/ then scroll down the not be able to claim relief on their page to Wage and Salary Standards. regular commute from home to work. employers under the Agreement will rise to 5% of basic pay on 3 October 2016. Advice and guidance on the need It has been brought to the Association’s to consult with the members of the attention that some employers have In developing this pension strategy, workforce over deductions from their taken this new measure to apply also to agreement has recently been reached wages to fund such contributions will employees on their directly-employed with the Operatives’ trade union, PAYE payroll. If you employ workers directly Unite, on arrangements for requiring be issued over the coming months. under the terms of the BESA Operative employee contributions – commencing Additionally, the Association, Unite and National Agreement who are not engaged with the introduction of a required Welplan Pensions are working together through an employment intermediary, ¾% contribution in October 2016. to prepare material for distribution to but on a directly employed PAYE basis, the The phasing-in and scale of future employees via their employer about this special tax/NI arrangements contained in increases, leading to an employee recent development. Appendix D of the National Agreement – contribution of 3% of basic pay over the Welplan Pensions will contact you directly relating, among other things, to payment of period to October 2018 are outlined in if you use them as a vehicle for delivering fares and lodging allowance – will continue JCC Letter 116, which can be your pension obligations under the to apply unchanged for such employees. downloaded from the Association’s National Agreement. BESA Group 26 Companies: PUBLICATIONS TRAINING

A new look for ‘s website Welplan, a wholly owned subsidiary company of the BESA, will soon launch its new look website featuring a whole host of useful added information and downloads. If you’re a small employer and are reaching your staging date, it’s not too late to put your pension plan in place. Welplan is open to all employers in any industry, and employers can maintain their pension account online, so you can get back to running your business. Welplan can provide: l no charge to employers l a team of experts on hand to help, l workforce assessments and should you need us contributions tools, allowing l online sign up (coming soon), making l a completely flexible package of employers to access their online things even easier to manage benefits available for employers to account at any time l a Master Trust Assured scheme provide to their employees. Proud of our accreditations Welplan is proud to hold two key industry accreditations: In November 2015 Welplan Pensions became one of the few UK schemes to qualify for the Master Trust Assurance quality standard, which was developed by the Institute of Chartered Accountants in England and Wales (ICAEW) in association with The Pensions Regulator to help employers identify schemes with the highest standards of governance and administration. With so many pension schemes to choose from, it can be difficult to know which is right for you. The Pensions Regulator, along with the Institute of Chartered Accountants in England and Wales (ICAEW), created the Master Trust Framework standard to provide a kitemark indicating a scheme’s high standards or governance and administration. By looking to one of these schemes, like Welplan, you can be sure that they’ve been independently accredited, giving you peace of mind. In April 2016 Welplan Pensions was awarded the Pensions Quality Mark (PQM) READY standard, for the second year running, in recognition of the scheme’s low charges, clear communications and strong governance. Only 11 other pension providers in the UK hold this industry standard, and we are really proud to display the PQM READY logo on our website and printed materials. 27

A BUILDING ENGINEERING SERVICES ASSOCIATION BESA Group 28 Companies: PUBLICATIONS TRAINING

BESA ROUND-UP Welcome to Woolplan To raise the profile of Welplan in Cumbria as the region’s local pensions and benefits provider, Welplan has taken part in Go Herdwick, a unique fundraising project for The Lake District Calvert Trust. Welplan has sponsored a life size fibre glass sheep, which has The North West Training Award winners with been painted by Richard Ward, BESA Membership Director. local artist Sarah Taylor and has been BESA North West recognises named Woolplan. its brightest and best In total, there are 60 decorated Herdwick sheep, which can Presentation of this year’s North West Training Awards took place during the be found in various annual ball organised by the North West Region of the Building Engineering locations throughout Services Association (the BESA) at the Imperial Hotel in Blackpool. The Lake District, Cumbria, until 4 September. In late Presentations were made to ten employees of eight companies – as well as to September/early October 2016, the Reanna Evans of national contractor N G Bailey, who received the Chairman’s Award herd will be sold at a Grand Gala for Outstanding Achievement. Auction and online to take up their retirement as fun pieces of artwork The Employer’s Award for Commitment in offices, homes, shops and gardens to Training was won by Sodexo, Salford, with net profits going to The Lake Manchester. District Calvert Trust. Woolplan can be found at The Moot Hall, Keswick. For In presenting the awards, BESA president more information about Go Herdwick, Jim Marner pointed out that, as a former please visit www.goherdwick.co.uk chairman of the region, he was well aware of its long-standing commitment to vocational education and training. “The awards that have been presented this evening prove that your commitment has not wavered in spite of the tough times we’ve all had to cope Chairman’s award for outstanding with in recent years – and I trust that achievement is presented to Reanna you are reaping the benefits of your Evans of NG Bailey by Peter Williams investment now that things have taken the NW BESA Chairman (L) and BESA BESA a turn for the better,” said Mr Marner. President Mr Jim Marner (R). competition winner For the first time in February, BESA A big BESA welcome to… attended The ACR Show alongside one of its group companies, Refcom. BESA Airmaster Air Conditioning Ltd, who ran a competition to win a Fitbit and became a BESA member in February all entrants had to do was scan their exhibitor badges for a chance to win. Lisa Pogson, director of Sheffield based The winner was chosen at random Airmaster Air Conditioning Ltd, was and the lucky person was Mark Cole presented a BESA membership certificate by (left), Ipswich Branch Manager for the newly elected Yorkshire BESA Chairman, BESA member, Pitkin and Ruddock, Andrew Hudson of G&H Sustainability Ltd who received his Fitbit prize from Mike at the latest Yorkshire regional meeting. Malina (right), BESA Regional Manager. 29

EVENTS CALENDAR 2016 BESA SPECIALIST GROUPS AND COMMITTEES BESA REGIONAL MEETINGS – JUNE 2016 Specialist Groups AGM and Lunch North East Tuesday 21 June 19 May - Trinity House London Tuesday 21 June Sussex Wednesday 22 June Ductwork Group 18 May, 19 May (at AGM & lunch at Trinity House), 29 September Hertfordshire Wednesday 22 June Kent Wednesday 22 June Heating & Plumbing Services Group 19 May (at AGM & lunch at Trinity House), 8 June, 5 October South Midlands Thursday 23 June Northern Ireland Thursday 23 June Refrigeration, Air Conditioning, Eastern Counties & Heat Pump Group Thursday 23 June 18 May, 19 May (at AGM & Lunch at Trinity House), 15 September South West Thursday 23 June Surrey Tuesday 28 June Service & Facilities Group 19 May (at AGM & lunch at Trinity House), 31 May, 13 October West Midlands Tuesday 28 June East Midlands Tuesday 28 June Technical Committee North West Tuesday 28 June 13 July, 9 November Wessex & C.I. Tuesday 28 June Joint Health, Safety & Environment BESA Wales Wednesday 22 June Committee 6 May, 23 September Scotland Wednesday 29 June Yorkshire Wednesday 29 June EXHIBITIONS AND CONFERENCES South East Thursday 30 June Accountex 2016 11-12 May, Excel, London BESA HEALTH & SAFETY FOCUS FORUMS Healthcare Estates Management London & SE Conference Building and Maintaining the 26 May - Holiday Inn, London Stratford City Future of Our Health Wales & SW 11 May, AJ Bell Stadium, Salford 2 June - Holiday Inn, Cardiff & Midlands 16 June - Holiday Inn, Rugby/Northampton Dynamo Build: Property & Construction Tech Northern 19 May, Crowne Plaza, Newcastle 30 June - Holiday Inn, Leeds Garforth Faciltites Show 2016 21-23 June, Excel, London & CIBSE 17 & 18 November, QEII Centre, Westminster, London For further information about any of our events, please visit The Building Services Summit 2016 www.theBESA.com/events 23 November, British Library, London BESA Group 30 Companies: PUBLICATIONS TRAINING

A BUILDING ENGINEERING SERVICES ASSOCIATION 31