How Much Does the Initial Buildings Assessment Cost?

BCSA MEMBERSHIP COSTS AND ASSESSMENT PROCEDURE

How much does the initial Buildings assessment cost? The cost of a company’s initial Buildings assessment is £500 + VAT which is non- refundable. How much does membership cost? The cost of membership is related to the company’s turnover (see attached Definition of Levy). Levy Calculations/Payment (for 2011) The level at which the minimum subscription of £1,542 + VAT is payable is on leviable turnover up to £744,843. The level at which the maximum subscription of £53,125 becomes payable is £70M. There is a scale rate between the maximum and minimum. The amount for the turnover figure is for the fabrication and erection of structural steelwork, including the supply of cold rolled purlins, but not the supply of other cladding materials; sub-contract work is leviable. The Association’s financial year is from 1 January to 31 December. Any companies joining during the year pay a pro-rata amount. The following rule applies to companies under common ownership: “That where separate Members can be grouped under common ownership, levy shall be based EITHER on combined turnover OR on the appropriate levy for the named principal plus the minimum levy at the rate current for each of the other companies in the group WHICHEVER PRODUCES THE HIGHER TOTAL AMOUNT. Where the combined turnover of all the companies in the group exceeds the amount appropriate to maximum levy, the maximum levy shall be paid by the named principal company in the group and a minimum levy at the rate current shall be paid by each other company in the group appearing in its own right in the BCSA List of Members.” What do I need to provide during the assessment? General It is mandatory that the company provides the following documents for review by the auditor during the assessment visit: 1. The company’s latest full audited accounts1 as prepared for its shareholders, and similar accounts for up to two previous years, as applicable. 2. The full consolidated audited accounts1 of any ultimate holding company (if applicable). 3. The original of the company’s CIS Tax Certificate (card) or a copy of both sides, provided that the copies are signed and dated as true copies by a Director or the Company Secretary. 4. The original of the company’s Certificate of Registration for VAT or a copy, provided that the copy is signed and dated as a true copy by a Director or the Company Secretary. 5. A certifying document as described in the Income Tax (Sub-contractors in the Construction Industry) Regulations 19932 (if applicable). 6. Evidence of a valid public liability insurance policy. 7. The company’s certificate of QA registration (if applicable). 8. Correspondence with the local authority concerning registration under the Environmental Protection Act (if applicable). 9. Evidence that the values of the contracts listed as references are valid. 10. Evidence of capabilities for the various categories of work for which registration is sought. This can be in the form of actual fabrication in the works, or photographs or drawings of projects completed in the last 5 years.

1 These audited accounts should be the latest available which should be in line with Companies House requirements (ie 7 months from the end of the period to which they relate for Plc and 10 months for Ltd companies). Draft or qualified accounts are not acceptable. The accounts must include:

 the balance sheet (signed and dated)  the profit and loss account  the trading account (if applicable)  the Director’s report  the Auditor’s report (signed and dated)  any notes to the accounts

Sole traders and partnerships should provide a detailed profit and loss account and balance sheet, which should be signed by the Sole Trader or a Partner and by the Accountant as a true and fair view of their business affairs.

If the company relies on the net assets of its parent company to support its registration classification, consolidated accounts (also in accordance with the notes above) for the parent company providing the guarantee must be submitted and these must show sufficient net assets.

2 This document should be signed and dated by a Director or the Company Secretary, and it should state: that your company is the user of a valid CIS5 Tax Certificate; the company’s name, address and registration number; the number of the Tax Certificate, the address of the Inspector who issued it and its date of expiry. Health & Safety The auditor will need to verify that the company has a suitable written policy complying with the Health and Safety at Work etc Act, that it makes a commitment to providing adequate resources, and that it is signed and dated by a Director. The auditor will also need to:  Verify that the persons named as H&S duty holders in the Application Form have appropriate qualifications and/or experience and that their organisational reporting relationships are clearly defined and appropriate.  Check that the company has a suitable H&S Manual that includes coverage of training, risk assessments, accident reporting, first aid, emergency arrangements and individual responsibilities.  Verify that the training listed in the company’s H&S Manual is taking place.  Inspect examples of risk assessments, site inspection reports and accident/incident report forms for suitability.  Be given information on the company’s incident rate for reportable accidents (fatalities, major and over three day injuries) per 100,000 employees.  Follow up on what actions were taken by the company following any convictions, prohibition or improvement notices listed in the Application Form.  Ensure that the company is cognisant of good practice guidance concerning safe execution of steelwork. Physical and Personnel Resources Where the company does not own the premises it occupies, and if no formal lease exists, then a declaration that the company has the continuing use of the premises will be acceptable provided that the following conditions are met:  The premises are owned by either the ultimate parent company or a wholly owned subsidiary of that company.  The declaration of “continuing permission to use” is signed by a Director or Company Secretary of the company that owns the premises. During the visit, the auditor will need to have open access to the company’s main works3 and offices so that the auditor can ascertain the following:  Buildings, plant and equipment controlled by the company that are used in fabrication and treatment of steelwork, and the type of work produced.  Staff employed by the company4 and their allocation to functions associated with the supply and erection of steelwork.

3 If there is more than one works listed in the Application Form, it may be necessary for the auditor to visit more than one works. This will depend on whether the company’s overall capability is critically dependent on the other works. The auditor would decide this during the visit, which should be arranged to start at the company’s main works.

4 The numbers should reconcile with the numbers declared in the company’s accounts, and these should not include self-employed personnel or labour-only sub-contractors. Where the form of the company’s accounts do not require declaration of numbers employed or staff costs, a declaration concerning the split between the company employees and others will be required. Notification If the auditor has any concern about the validity of any of the company’s declarations, this will be notified to the company during the visit, and the company will be given the opportunity to produce specific additional evidence (not necessarily listed above) to provide the necessary assurance. BCSA LIMITED

Definition of Leviable Turnover 1. Levy is payable by Members of the Association at the current rate determined by the Council and calculated in accordance with the scale laid down by the Council.

2. The amount of levy due from a Member is derived by calculating the Member’s invoiced turnover of leviable work executed against the prescribed scale of levy.

3. The following defines the nature of leviable work to be used for the purposes of calculating leviable turnover: The supply and/or erection of constructional work of all descriptions, including component parts, whether fabricated in the works or on site and whether under a contract or sub-contract, in steel or other metals, subject to the following exclusions: (a) cladding, fencing, mechanical handling plant, patent glazing, process plant, railing and gates, rainwater goods, the rolling only of cold rolled sections, rods for reinforced concrete, tanks, and temporary steelwork comprising Member’s own plant. (b) sea structure work (fabricated steelwork for the supply of off-shore oil or gas production platforms, exploration rigs and assemblies, sub- assemblies, ancillary vessels and component parts) (c) unless incorporated in a contract or sub-contract for constructional steelwork,  bins, bunkers, castings, chimneys, cowls, doors, ducts, flues, hoppers, kilns, silos.  unfabricated sections and plate. (d) any work executed by a Member in extending, altering, or adding to his own premises for his own use.