Yearbook 2019.qxp_Layout 1 01/05/2019 16:20 Page 1
ING PropertyAT of25 ECIA R Y B E E A L R
E S C
• 1 • 9 9 94 – 201
ECIA YEARBOOK 2019
Changes within Industrial Relations and Are you prepared for ‘Making Tax Digital’ Employment Relations page 08 and ‘Reverse Charged VAT’? page 20 Good things are happening in the field Celebrating 25 years: 1994 – 2019 of HSE page 12 page 34 Yearbook 2019.qxp_Layout 1 01/05/2019 16:20 Page 2
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25 YEARS: 1994 – 2019 Engineering Construction Industry Association | 03 |
Contents
Foreword 04
ECIA’s 25th Anniversary and beyond 06
Changes within Industrial Relations and Employment Relations in Engineering Construction 08
Good things are happening in the field of HSE 12 TheProperty ECITB – looking back on a year of delivery of ECIA 16 Are you prepared for ‘Making Tax Digital’ and ‘Reverse Charged VAT’? 20
Employees value good welfare benefits 22
Regional updates 24
Unauthorised use of NAECI must stop 26
Shining a spotlight on salary and HR trends in 2019 28
An extract from the ECIA Business Trends Survey Q1 2019 32
Celebrating 25 years: 1994 – 2019 34
ECIA Regional Meetings in 2019 36
ECIA External Representatives 38
ECIA Council Representatives 39
Photograph courtesy of Palmers Scaffolding Yearbook 2019.qxp_Layout 1 01/05/2019 16:20 Page 4
| 04 | ECIA Yearbook 2019 25 YEARS: 1994 – 2019
Foreword Office Bearers who served during the year Property of ECIA
Derek Hunter Mike Wilkins Dr Georgette Banham Ian Guy Simon Lafferty UK Construction Morgan Sindall Hitachi Zosen Wood. Balfour Beatty and Engineering Inova UK Kilpatrick Past Deputy President President President Vice President Vice President
e are pleased to confirm that our industry continues to deliver a high standard of safety, with the rate of reportable injuries up to seven Wtimes lower than recorded for the construction industry as a whole. That is a record of which we can all be rightly proud. Our challenge now is not to simply maintain that record, but to improve further upon it, and we are “committed to that goal.
There is a growing awareness of interests of improving the health of however, we are pleased that common mental health issues and the need those employed in engineering ground was eventually found and a two to address them, the ECIA is construction. year agreement for the 2019 – 2020 supporting its members in doing period was agreed. That provides our this. As part of the recent review of As detailed by Simon Bailey in his industry with 2 years of cost NAECI 2019 and beyond, an NJC article on page 08, negotiations were predictability, IR stability” and the time to Working Party was established to ongoing during much of 2018 in consider how NAECI may best evolve consider initiatives for health response to the trades unions’ claim for in the future. surveillance. We look forward to the a review of the NAECI terms and working party reporting on its conditions for 2019 and beyond. The As we finalise this article, long findings and recommendations to negotiations were long and complex shadows from Brexit continue to shade the NJC Council in September, and taking into account the differing our industry, and the economic agreeing a way forward in the expectations of the stakeholders, uncertainty that it has brought since Yearbook 2019.qxp_Layout 1 01/05/2019 16:20 Page 5
25 YEARS: 1994 – 2019 Engineering Construction Industry Association | 05 |
2016 continues. That uncertainty is Capacity Auctions were introduced in energy plants unattractive. discouraging many investors from 2014 so that electricity supplies are investing in new engineering available at short notice. The The government’s target of moving from construction projects in the UK, which government announced the suspension petrol and diesel cars to electric cars by is reflected by the minimal levels of new of the capacity market in November 2040, could add to the possibility of an project work. NAECI, however, 2018, after the European Court of energy shortfall. So with the continues as the agreement of choice Justice ruled that the auctions could be decommissioning of coal fired for the majority of repair and in breach of EU state aid rules. The T-1 generation by 2025 and if further maintenance projects and the and T-4 auctions for delivery in 2019/20 investment in new nuclear is not significant outage, shutdown and and 2022/23 were postponed and any secured, gas fired power stations (that turnaround workload for the coming capacity payments under existing can be designed and built in short time period will be welcome news to many agreements were held. The European frames) could plug the gap for the short of our members. Commission is appealing the ruling by to medium term. Our members stand Propertythe European Court of of Justice but ECIAready to build these assets. The UK continues successfully its push meanwhile the investigation proceeds. to decarbonize electricity generation, The formal investigation opened on In order to design and construct new with a new record of 650 hours of coal- 21st February 2019 but its conclusion electricity generating plant and to repair free generation being set in the first date is presently uncertain. and maintain our existing assets we quarter of 2019. Renewables are need the relevant resources, skills and producing an increasing amount of the The Department for Business, Energy suitably qualified and experienced UK’s energy needs and in favourable and Industrial Strategy (BEIS) people. With a workforce with an conditions wind can now produce in subsequently announced that a ‘T-1′ average age of 54 years and some of excess of 30% of our energy Capacity Market auction (delayed from our members already reporting skills requirements. There remain challenges January 2019) will be held this shortages we need to invest in training for the supply industry: two nuclear new summer, but capacity payments will and we need to invest now. Later this build projects have failed to get off the be conditional upon the outcome of year the ECITB will ask the industry to ground; coal fired and nuclear power the Commission’s formal investigation support a further 3 year levy resolution stations are being decommissioned; of the Capacity Market. The auctions for the period 2021 to 2023. Those and battery storage is a long way from have assisted in keeping the cost of companies in scope to the ECITB and being economic on a commercial energy relatively low in recent years, in membership of the ECIA will be scale. These challenges mean gas-fired but the low price paid for capacity and invited to vote through the Association. generation still has an important role the uncertainty around the We strongly encourage you to continue to play. continuance of capacity payments to support the ECITB and to reinforce have and are likely to continue to your commitment to training the To ensure the security of supplies make investment in new gas fired workforce of the future.
Photograph courtesy of Exyte Hargreaves Yearbook 2019.qxp_Layout 1 01/05/2019 16:20 Page 6
| 06 | ECIA Yearbook 2019 25 YEARS: 1994 – 2019
ECIA’s 25th Anniversary and beyond
Propertys we commemorate our 25th of ECIA Anniversary and celebrate our successes we aim to maintain our high by Michael Hockey A ECIA Managing Director levels of member satisfaction, and will use our regional meetings and our annual membership “survey in 2019 to explore with you what more we can do to ensure that membership of the ECIA continues to offer added value.
1st April 2019 marked the is strong and profits are affect how we design, procure and 25th anniversary of the hard earned. That can construct engineering construction ECIA. bring time-management projects and sites in the future. issues and so we are The ECIA evolved grateful to those ECIA staff spend more time going out to from the merger of members who are engage with our members locally than two associations committed to we did a decade ago, and that is (NECEA and OCPCA), supporting” the welcomed by members and echoed by and is an employers’ Association by playing the consistently positive feedback association registered an active role and who received from our regional meetings. As with the certification officer. manage their time in order we commemorate our 25th Anniversary We offer our members advice to do so. We would be and celebrate our successes we aim to on industrial relations, employee especially pleased to talk with anyone maintain our high levels of member relations, health and safety and HMRC else who is interested in becoming more satisfaction, and will use our regional matters, we provide project support, actively involved with the Association. meetings and our annual membership and ECIA membership gives access to Involvement begins with a conversation survey in 2019 to explore with you what NAECI, Welplan welfare benefits, with any member of the ECIA staff, who more we can do to ensure that training programmes, Best Practice will welcome your interest. membership of the ECIA continues to Guides, and far more (see our website). offer added value. We are member led. Members lead our Market drivers and business Council and our Management Board, environments have changed. Meanwhile, we are refreshing our brand and support our committees and our Digitalisation and the fourth industrial (see our new logo), and will be working parties. Member support and revolution are influencing the way we launching our new website shortly. participation has produced the success think and the way we operate. 3D that we enjoy today, and we are proud printing, virtual reality, drone technology Never has training and the provision of of the services that we are able to offer. and agile management are all terms skills been more important. Even given with which we are all becoming the presently low level of activity in our Competition in engineering construction increasingly familiar and which will industry, skills shortages are reported, Yearbook 2019.qxp_Layout 1 01/05/2019 16:21 Page 7
25 YEARS: 1994 – 2019 Engineering Construction Industry Association | 07 |
and the question of whether we are affiliate membership of MakeUK (trading to expand his contribution to various faced with a demographic time bomb in as EEF Ltd). During a recent charitable works. We wish him a long the near future remains uncertain. In an restructuring, MakeUK established an and happy retirement and every effort to provide greater clarity on Affiliate Board, on which I, as your success in his new ventures. whether that is an imminent issue the Managing Director, accepted a seat. This Association will shortly invite its member will help us strengthen our relationship We were recently joined by two new companies to participate in a workforce with MakeUK and with our members’ members of staff. census. Please take part in that survey. help, provide new opportunities to give voice to engineering construction. Mark Baxendale Competence assessment remains a Mark joins our team of regional significant topic for onshore engineering managers, and will take on responsibility construction. The ACE initiative was ECIA Staff Changes for providing ECIA services in the NW launched more than 15 years ago, as a There are a number of staff changes at region in due course. way ofProperty qualifying those in the industry the ECIA. of ECIA who were unqualified. Without doubt Terence Woolmer the initiative was a success. More than Richard Ash Terry was appointed as our Manager of 24,000 Ace cards were issued. Richard is retiring after almost 20 years HSE, to ensure continuity of our highly However, without a meaningful program of service with the Association. During valued service to members and to for periodic reassessment of that time, as many of you have expand and develop the role as the competence, support for the initiative corroborated, he provided a valued market continues to evolve. has fallen. Today, less than 6,000 ACE SHE service to ECIA members. He also cards are currently valid. An ECIA took on additional roles and We are pleased to welcome them both working party, supported by the ECITB, responsibilities within the Association, to our team. is now reviewing the scope of ACE, and including volunteering to fulfil the is developing a proposed renewal position of Quality Manager. He was Business Development Manager process based on periodic pivotal in our achieving ISO 9001 In response to changing market drivers, reassessment. Once detailed, the draft accreditation and ensured that we a business development manager will proposal will then be presented to the consistently maintained it. also join our staff shortly, to further ACE ISG for further consideration. strengthen our team and to assist in Richard has plans to use his retirement promoting NAECI as the agreement of ECIA member companies benefit from to spend more time in agriculture, and choice for engineering construction.
Obituary David Andrew Cowan (1943 – 2019)
It is with regret that we learned of David’s death, following He was widely respected in a short illness. David was our president from 2002 to the industry and mentored 2004, during which period he chaired a major review of many, assisting them in their the NAECI, first introducing the concept of categorisation. careers. He also took the ECIA Spring Ball out of England for the first time, memorably hosting it in Stirling Castle. David enjoyed an active retirement, following rugby, David was born and grew up in Galashiels. When he left enjoying spending time with school he started a graduate apprenticeship as a his family and grandchildren, mechanical engineer with Babcock and Wilcox. While and busying himself with the company changed names several times, David DIY. He moved to North spent the entire 42 years of his working life with the Berwick last year. same employer. He had various roles within the power industry throughout the UK, as well as a posting to David is survived by his wife Janice, daughter Katie, and Korea. son Neil. Yearbook 2019.qxp_Layout 1 01/05/2019 16:21 Page 8
| 08 | ECIA Yearbook 2019 25 YEARS: 1994 – 2019
Changes within Industrial Relations and Employment Relations in Engineering ConstructionProperty of ECIA by Simon Bailey ECIA Operations Manager
he NAECI has always been an evolving document, which regularly adapts to changes in circumstances, in order to maintain its attractiveness to “Tclients and investors as the “Agreement of Choice”.
The current political and economic extremely reluctant to agree a Also included within the settlement vagaries of UK plc are providing settlement for latter stages of a multi- were some increases within the Welfare exceptionally challenging trading year deal without some form of linkage benefit provisions of the NAECI. These conditions in the Engineering to the prevailing economic included an increase of £5,000 to the Construction market. These are circumstances at the time of any Conditional Death Benefit payable when being experienced by contractors subsequent increases. there is no sympathy action taken. This and clients alike. The recently settled is the first increase” to CBD since it was two-year NAECI agreement does After much discussion, the employers, introduced in June 2012. This provide members with some stability wanting to secure an agreement of a arrangement is now well embedded and some labour cost predictability longer duration than just one year, throughout the industry and has proved moving forwards. agreed to a second year increase with to be extremely successful in curbing an inflationary “collar and cap” with the the damaging practice of sympathy An agreement on NAECI 2019-2020 collar being an increase of 2% and the walkouts, whilst providing additional was finally reached in November 2018, cap being 3.5%. The reality of this is monies to the dependents of the following a lengthy and difficult set of that if the average level of the consumer deceased. Also increased by a further wage negotiations between price index, for the months of £25,000 was the payment applicable representatives of the employers and July/August/September, as published where an individual suffers Permanent the Trades unions, Unite and GMB. by the Office of National Statistics, is Total Disablement that prevents them above 2%, that will be the level of from resuming any occupation for The wage settlement consists of two increase subject to a maximum wage remuneration or reward. Subject to wage increases; the first of which (a rate increase capped at 3.5%. Whilst satisfactory medical evidence, this headline new money increase of this does not allow the publication of payment will be made as soon as 2.53%) has already been implemented pounds and pence wage rates for year practicable after 27 weeks consecutive in January 2019. The second increase two at this point, it does allow disability. Always mindful of not unduly is due on 6 January 2020. Throughout contractors to estimate labour costs as increasing employers’ costs, the the negotiations the trades unions were falling within a defined range. Association approached Welplan to Yearbook 2019.qxp_Layout 1 01/05/2019 16:21 Page 9
Property of ECIA Yearbook 2019.qxp_Layout 1 01/05/2019 16:21 Page 10
| 10 | ECIA Yearbook 2019 25 YEARS: 1994 – 2019
Changes within Industrial Relations and Employment Relations in Engineering Construction (continued)
explore how the financial impact of the future developments within the NAECI. become a day one right i.e. a member enhancedProperty provisions could be limited. All members are entitledof to attend ECIAcompany will need to issue a After taking actuarial advice, Welplan Regional Meetings, so please ensure statement to any new employee responded that there was sufficient that your company sends along (irrespective of the length of their liquidity within the scheme to absorb somebody to voice the views of your period of employment) on, or before, the costs of these enhanced organisation. their first day of work. provisions, from 7 January 2019, without increasing the costs to The protracted negotiations around the At the time of writing, it is still not clear employers of purchasing the cover. This UK’s departure from the EU have when or how “Brexit” will happen. is good news for members who can sucked all of the political “oxygen” out Whilst other articles will cover the now access an even better value of Westminster, meaning that if subject in more detail, the type and Welplan Scheme. something is not Brexit-related, there is timing of the UK’s departure from the not much resource being allocated to EU will have employment relations Another aspect of the settlement was it. This has led to almost nothing in the implications, certainly in terms of skills a commitment to establish two Joint way of new Employment Law and an availability. Though the Government Working Parties, under the auspices of extremely slow legislative response to have outlined their proposals for the the NJC, to look at “Occupational the recommendations contained within EU Settlement scheme, whereby non- health surveillance” and “Ways to the Taylor report (into Modern Working UK EU citizens can apply to remain improve flexibility and productivity”. At Practices) which was published as far living and working in the UK after the time of writing this article, both back as July 2017. The Government Brexit, it remains to be seen how many Working Parties had been convened have run four separate public people, with the skills required by the and had held their kick-off meetings, consultation exercises on various Engineering Construction industry, however, it is far too early to speculate elements of the review and only now choose to leave. on what any outcome are we seeing the Government’s recommendations might be. “Good work plan” materialize into The Association are very aware that changes to statute. preserving stable and harmonious Given the two-year duration of the employment relations within a Agreement, the employers now have a The first of these is the significant company’s new build or repair and short window of opportunity in which increase to the penalty that can be maintenance operations is not easy. to consider how they would like to see applied by an Employment Tribunal to With this in mind, the ECIA continue to the Agreement develop in the future. an employer for an “aggravated make available their “NAECI The NAECI has always been an breach” of an individual’s employment Employment Relations Awareness” evolving document, which regularly rights. Previously this penalty, which is training seminar to members. These adapts to changes in circumstances, payable to the Secretary of State rather courses have been run in most ECIA in order to maintain its attractiveness to than the claimant, was subject to a Regions as well as on an in-company clients and investors as the maximum of £5,000. From April 2019, basis. They have been particularly well “Agreement of Choice”. The this has increased to £20,000. received when run on a project basis, Association are extremely interested in either in the planning stages with the obtaining members’ views about the A little further down the track, are the Managing Contractor’s staff attending possible future direction of NAECI. changes to “Statements of written or during the construction phase when With this in mind, we are proposing particulars” of terms and conditions of there are many smaller companies, that the June cycle of ECIA Regional work. Currently employers have up to some of whom may be unfamiliar with Meetings will include a “workshop two months to issue such a statement NAECI, mobilizing to the site. Either session” for members to provide (usually referred to as a contract of way, the Association is here to assist feedback on elements of the current employment) to any employee working its members and help them be as well agreement and to air their views and for the company for more than one prepared as possible to meet any proposals they might have about month. From April next year, this will employment relations challenges.
Yearbook 2019.qxp_Layout 1 01/05/2019 16:21 Page 11
Property of ECIA
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| 12 | ECIA Yearbook 2019 25 YEARS: 1994 – 2019
Good things are happening in the fieldProperty of HSE of ECIA
by Richard Ash ECIA Health & Safety Manager
The 2018 injury occurrence data we improving performance, but also to have received from ECIA members ensuring it does not diminish either. suggests a rate of 89 legally ver the year reportable injuries per 100,000 For some time CCNSG has been employees. This aligns with NJC data developing a test-only option for ECIA’s Safety from Category 1 and 2 ‘Blue Book’ renewing CCNSG passports. ECIA has Health and sites suggesting 85/100,000. These been a leading player in that process. O rates are orders of magnitude lower We are pleased to report that this Environment than those for UK construction as a initiative has now been rolled out Committee has been whole, possibly up to 7 times lower. nationwide. A key feature is that the test- giving much thought to only option can be provided at the “ Thus, we are delighted to be able to customer’s premises rather than having the wellbeing agenda. report that the contrast between to go to the provider’s – they can come It is an area that has engineering construction and other to you. This dramatically reduces the time come to the forefront sectors remains as marked as it has away from work needed for CCNSG and will remain there, been in previous years. This comes at a renewal and is a major benefit. Test-only time when the engineering construction is not ‘dumbing down’. The consistent particularly with regard industry is under intense commercial feedback is that ‘this test is no walkover’. to mental health. pressure and margins are pushed to It makes candidates scratch their heads. the limits. The fact that injury rates We advise that users give at least some remain so much lower than other thought before opting for the test-only places, despite those pressures, is route, as failing it will require mandatory evidence of the cultural commitment to attendance at a one day renewal training high standards amongst all the course as well as incurring the costs of stakeholders in our sector. the failed test only attempt.
But as always complacency is the Following conclusion of the most recent enemy. The injuries that are NAECI review, an NJC Working Party experienced continue to major on has been established to consider ‘mundane’ events such as slips and initiatives for health surveillance. It is trips and simply bumping into things. It made up of two trade union and two remains the case that attention to detail ECIA representatives. It is still early ” in these areas is key not only to stages, but it seems that there is Yearbook 2019.qxp_Layout 1 01/05/2019 16:21 Page 13
25 YEARS: 1994 – 2019 Engineering Construction Industry Association | 13 |
common ground with respect to the concerning construction fire safety Guidance has been considered and is potential benefits of some form of risks, tall building construction risks, essentially ready to release. However, periodic ‘health check’ for employees work at height and ‘keeping pace with we are mindful of the work of the NJC subject to typical engineering change’. The principal CONIAC focus is working party. It is worthwhile waiting a construction exposures. There is much reaching smaller firms in building little, in order to exploit beneficial that still needs to be discussed, not environments, rather than engineering synergies that might emerge between least with respect to creating a model construction. Nonetheless, we remain ECIA and NJC developments. that is suitable for both small and large committed to CONIAC contributions as companies. But it has been an it is a significant component of the Finally, this is the last contribution I will encouraging start. The Working Party broader ‘regulatory’ landscape make to the Yearbook before I retire has been tasked with submitting from ECIA. I take this opportunity to proposals to the National Joint Council Over the year the Safety, Health and thank all the quality professional people in September 2019. Environment Committee has been I have worked with over the past 19 Propertygiving much thought of to the wellbeing ECIAyears. It is the people that have made ECIA has maintained its links with the agenda. It is an area that has come to my ECIA career such a pleasure. I wish new CONIAC structure. We have the forefront and will remain there, the industry well. Thank you all and contributed in particular to initiatives particularly with regard to mental health. good luck.
Photograph courtesy Exyte Hargreaves Yearbook 2019.qxp_Layout 1 01/05/2019 16:21 Page 14
Property of ECIA
[VÄUKV\[TVYL We’re here to help and support all UK manufacturers, and to Go to makeuk.org champion UK manufacturing.
The world is changing, so have we. Yearbook 2019.qxp_Layout 1 01/05/2019 16:21 Page 15
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As essential as engineering productivity through skills, maximise the significant pieces of labour market construction is to the success of UK value of the training levy to our intelligence research to improve plc, there’s no doubt our industry employers, and ensure the skills needs understanding of the industry and its faces significant challenges. From of the industry are heard in Westminster skills requirements. In January, we replacing an ageing workforce to and the devolved nations. published our Labour Market Outlook harnessing new technologies, the report, which asked engineering ECITB works to support the training ” Improving our construction employers about the and development of the skilled Governance challenges they face around recruitment workforce our companies need to and training. In May, we published a thrive. Green shoots of recovery are Arrangements technology report, which explored how appearing in some sectors with We started the year with an ambitious the ECI uses new technology, the employment forecast to expand by plan to improve the way the ECITB preparedness of the industry to adopt almost 20 percent in the next decade operates and implemented a number of these technologies as well as the creating tens of thousands of extra major reforms. In response to the challenges and obstacles involved. jobs. However, many industry sectors Government’s review of the industry continue to face difficult economic training boards, the ECITB now has a In 2018, we also consulted with conditions. Challenges include new Board, which is smaller and more employers on our grants policy. problems recruiting staff with the strategic, lending greater openness and Respondents scored the ECITB highly right skills and experience, transparency to our governance. Along for our products and services: the vast competition for skills between major with the establishment of the ECITB’s majority of employers said the training new infrastructure projects and the Council, this change has provided the on offer suited their needs and the need to train the workforce to use organisation with fresh strategic process for applying for grants and new technology. direction and a wealth of expertise from receiving payments is straightforward. across industry. This year, the ECITB has invested more Our status as an employer-led than £25 million in skills training and Listening to industry organisation with the confidence of our worked tirelessly to lead industry companies was further validated by the learning. Our priorities are to boost The ECITB recently conducted two Institute for Apprenticeships and Yearbook 2019.qxp_Layout 1 01/05/2019 16:21 Page 17 25 YEARS: 1994 – 2019 Engineering Construction Industry Association | 17 | Technical Education, which recognised struggle in 2018, demand for training the ECITB as External Quality support grew as new projects came on Assurance provider on behalf of the line. In fact, across the range of ECITB industry. supported training, take-up was higher than forecast at the beginning of the Attracting new entrants year and saw us spend an additional £4m from our reserves to top up the Growing the pipeline of skills remains a levy income. priority for industry. Our Introduction to Engineering Construction programme (ITEC) programme goes from strength Connected Competence to strength, with nine out of ten learners and Project completing the course in 2018 and Collaboration Toolkit aroundProperty two-thirds progressing into an In addition to meeting of employers’ ECIA apprenticeship or higher technical priority training needs, we delivered a education. The value of the ITEC number of key strategic initiatives in number of major infrastructure facilities course to industry is clear from the 2018. Connected Competence, the and we are examining how this work calibre of companies recruiting our Project Collaboration Toolkit and our can be more widely applicable. Work is 2017 ITECs, which include Sellafield, Project Mentoring programmes have ongoing to develop a complementary BMW, Jacobs and Airbus among many been warmly received by industry. national competence assurance other prestigious names. scheme for the onshore engineering Connected Competence is an award- construction industry. winning scheme to build a more competent and transferable engineering Collaboration on projects is a great way construction workforce. Developed by for the industry to keep costs down as the ECITB in conjunction with some of well as share skills and expertise. The the North Sea’s biggest service ECITB-designed Project Collaboration companies, the scheme is Toolkit enables effective, collaborative standardising technical competence in relationships in the sector by sharing construction and maintenance best practice. Following successful disciplines with new tests in place for feedback received from industry, the industrial coatings and thermal toolkit has been piloted on five industry insulation activities. The principles projects and is also being made underpinning Connected Competence available to other industries. The results continue to attract interest across of these pilot studies demonstrate the Scotland, England and Wales from a benefits of client and contractor The ECITB continues to work with employers, schools and careers organisations to attract the next generation of engineers, technicians and project managers into the industry. We invested around £7m in careers and apprenticeships in 2018, supporting over 1,170 apprentices. Our goal at the start of the year was to achieve a 20% increase in apprenticeship starts, but the actual number was 137%. This spike reflects an improved business environment for many companies, alongside an increasing onus to develop new home-grown talent in light of the challenge of Brexit. While parts of the industry continued to Yearbook 2019.qxp_Layout 1 01/05/2019 16:21 Page 18 | 18 | ECIA Yearbook 2019 25 YEARS: 1994 – 2019 collaboration on major projects – in one strengthened our ties with the deal commitments, notably in the area case contributing to a 40% cost saving Department for Education and the of transferable skills. on a like-for-like project. See wider Westminster and devolved www.ecitb.org.uk for further details. nations’ policy arena. The ECITB has Strategy and Levy worked with the Department for consultation Shaping policy in Education and the Institute for Apprenticeships on the development of Finally, the Board has been working to Westminster T levels and continues to support develop the new ECITB strategy for Engineering construction is an industry employers with the new 2020 onwards alongside our new levy committed to the highest standards of apprenticeships model in England. offer. Development of the new strategy quality and training, but there is still Following the publication of a new started in late 2018 with series of plenty we need to do to help industry careers strategy in 2018, we have workshops across the country held with attract and develop more young and begun to collaborate with careers levy payers. The Board have now talentedProperty people. The ECITB will organisations in order of to work towards ECIAdetermined the direction of travel and continue to work with business and attracting the next generation of young we will shortly consult on the new government to expand the talent pool people to careers in the engineering strategy ahead of the levy rate by attracting both candidates with the construction industry. consultation which is currently planned skills and experience and new for September. We hope that entrants – in particular female and We have also paid close attention to employers agree that the package of BAME candidates – to address key the publication of the Government’s support that we are offering meets the skills shortages. Industry Sector Deals, and were closely requirements they have set us, involved in the development of the addressing the growing demand for The ECITB has continued to engage people section of the nuclear sector training today, while also helping with Government in key policy areas, deal, which was published in June industry stay ahead of the curve and throughout 2018. We have participated 2018. We are now working with the prepare its workforce with the skills for in Government consultations and sector to assist it in implementing the the future. Photograph courtesy of ECITB Yearbook 2019.qxp_Layout 1 01/05/2019 16:21 Page 19 Property of ECIA Yearbook 2019.qxp_Layout 1 01/05/2019 16:21 Page 20 | 20 | ECIA Yearbook 2019 25 YEARS: 1994 – 2019 Are you prepared for ‘Making Tax Digital’ and ‘Reverse Charged VAT’? Property of ECIA by Liz Bridge The Tax Bridge aking Tax Digital is just the “Becher’s Brook” jump of your 2019 VAT race. MIn October you have to jump “The Chair” and start reverse charging all invoices you send out to firms that are not going to be “end users. Have you managed the software 'soft landing' covers real money! expensive kit and materials have you changes required for 'Making Tax discussed with your accountants Digital'? I hope so because your firm But Making Tax Digital is just the whether you ought to be a monthly will need to send its VAT returns to “Becher‘s Brook” jump of your 2019 VAT repayment trader? HMRC at the press of a button for race. In October you have to jump “The any VAT return period that started Chair” and start reverse charging all Problems with cash flow make many after 01.04.2019. invoices you send out to firms that are businesses insolvent that are otherwise not going to be end” users of whatever buoyant and have a good order book. There will be all sorts of crises because structure you are constructing; and you Cash flow in the autumn of 2019 will be so many people are using new software have to educate all the subcontractors very stretched for many in construction. but HMRC have promised that as long who you pay that when they invoice or You need to be sure that you can pay as your firm was trying there will be no apply for payment they must reverse any VAT your firm will owe on the first penalties for a failed return. charge their invoices or applications to two VAT payment dates after your firm. Look at the suggested letter 01.10.2019 when there is no VAT There is a note of caution however. If a for your subcontractors (opposite). It will flowing into your bank accounts. return fails and you are one of the many be sensible to send a letter on these Remember HMRC will not know if you businesses that has signed up to pay lines to subcontractors in say June- are paying out VAT but not collecting VAT by direct debit, HMRC will be August 2019 to jog them into action. much in until a return goes in so you unable to automatically take what you must tell them you wish to be a owe and your VAT will be paid late. It is also worth thinking about what you repayment trader and put in a monthly might say to a contractor who sent you not quarterly return early. Don't wait for a There is no soft landing for VAT paid late such a letter – are you ready? Do your repayment from HMRC for three months! and penalties will be charged. So if your accounts staff have a formatted reverse VAT software ever fails, always always charge invoice to send out? Do they And good luck, September to estimate what your VAT debt is and pay it know how to code an outgoing reverse November will be very busy months in by BACS. The fines for late payment can charge invoice? Do you have two the accounts departments of any firm be awful. Don't think that the publicity for designs of invoice? If your firm buys that work in construction. Yearbook 2019.qxp_Layout 1 01/05/2019 16:21 Page 21 25 YEARS: 1994 – 2019 Engineering Construction Industry Association | 21 | Reverse charge: Suggested draft of a letter to all VAT registered subcontractors who you pay for construction operations, whether paid gross or net, being subcontractors who’s UTR you have verified. Dear xxxxx xxxxxx, We are writing to you because you are a valued subcontractor of ours who is VAT registered and who provides us with construction services and who is paid under the terms of our CIS scheme (gross or net). We think it is sensible to warn you of major changes to the VAT scheme for construction which HMRC are imposing and will begin on 1st October 2019. They will affect the payments we will make to you after that date. It is important that you know and understand the changes and plan for them because they may have serious repercussions for your cash flow. The published guidance that has been released by HMRC so far is at www.gov.uk/government/publications/vat-reverse- Propertycharge-for-building-and-construction-services-guidance-note of. It is also usefulECIA to look at and understand the published guidance on the CIS scheme itself which can be found at www.gov.uk/government/publications/construction-industry- scheme-cis-340. It seems likely that when working as a subcontractor for us the new reverse charge rules will apply to all the applications for payment or invoices that you send to us. This means that after 1.10.2019 when you do £1,000 of standard rated work for us. • You will invoice for £1,000 showing your supply as standard rated but NOT adding the £200 VAT to the amount due from us • We will pay £1,000 (not £1,200 as now) • Our VAT return will show £1,000 plus £200 VAT as both VAT payable and VAT recoverable. We will therefore gain no VAT advantage from the change. • Because you have not been paid £200 VAT by us, you will not owe HMRC £200 VAT • If you buy substantial materials used in subcontracted work, you may need to speak to your accountants to decide whether you should ask to send in monthly VAT returns in order to recover the VAT you have spent on materials each month rather than wait for a quarterly repayment. • If you do some work for end consumers like domestic customers, or for customers who are not VAT registered or not CIS registered, you will bill them the VAT as now. The new rules only affect supplies you make to firms who are not the final user of the building or structure. It is therefore sensible from now on to keep a record of your customers’ VAT numbers and ask them whether they include the payments they make to you on a CIS return (ie. the work is within the CIS scheme and they are CIS registered) The change is ahead – you must prepare If the contractors you work for do not pay VAT after 1.10.2019 there will be implications for the flow of cash in your business and you MUST check how you can manage these. For example, will you have the money to pay your historic VAT bill from the last quarter in the old rules if no VAT is paid to you after 1.10.2019? Can you afford to pay wages and PAYE if VAT is not flowing through your bank account after 1.10.2019? If your services are within the scope of CIS and the reverse charge rules apply, we will not be allowed to pay you VAT after the date of change so you must have prepared. Your invoices will need to be in a new format that does not add VAT to the total due.If you invoice for VAT after that date we will return the invoice which will delay payment. Be prepared. Transition The cut over date is 1.10.2019. Invoices dated up till 30.9.2019 will request VAT and can be paid with VAT. Invoices dated on 1.10.2019 and after will not show VAT in the amount payable columns. Staged or interim payments made after an application for payment when a QS has certified work will be governed by the date the payment is certified. So staged or interim payments certified up to or on 30.9.2019 and paid before 1 January 2020 will have VAT added, and you will be responsible for paying that VAT to HMRC. Payments certified on or after 1.10.19 will not be paid with VAT. We understand that this is a major change for everyone and will worry you. • Read the government website • Talk to your accountant • Plan out how you will pay your bills through the final quarter of 2019 when cash flow will be at its most difficult • Redesign your invoices and applications for payment • Consider how you will monitor whether your customers are VAT registered and CIS registered • Think about whether you will need to be a monthly repayment trader. Remember that the Government will soon have a dedicated reverse charge website where there will be more information. This letter is intended only to warn you of the change and allow you to make your own preparations. We hope you find it helpful. Yours faithfully, 23/04/2019 11:34:35 Yearbook 2019.qxp_Layout 1 01/05/2019 16:21 Page 22 | 22 | ECIA Yearbook 2019 25 YEARS: 1994 – 2019 Employees value good solutions for business welfare benefits by Bruce Kirton, CEO Welplan H Property of ECIA he current welfare benefits required by NAECI have recently been enhanced. T “ In today’s competitive business accident and death benefit to BUPA’s could include short videos and environment, it’s more important than medical insurance and enhanced infographics. ever to recruit and retain skilled assistance services. employees. Providing the right range ECIA scheme of benefits helps business to achieve Communication is key this goal and ensure the long-term Welplan’s current ECIA benefits product success. An employee benefits To ensure your employees get the range covers the traditional scheme helps employers to attract maximum value from” such a scheme, it’s cornerstones of the industry – death, the right talent in a tight labour vital to engage with them and explain the sickness, disablement and accident range of options available. This generates designed to further enhance retention market and meet the challenges posed by Brexit. greater interest and understanding as and recruitment. well as more appreciation of the package of benefits. This in turn engenders The current welfare benefits required by Recruit and retain greater loyalty to the employer. NAECI has recently been enhanced in It’s important to choose a partner which respect to the qualifying time period in has a deep knowledge of the world of That’s why Welplan will introduce a which to claim for permanent disability has been reduced from 52 to 27 employee benefits. Welplan first offered series of communication templates for consecutive weeks of disability while these services in 1960 and now employers to more effectively promote awareness the full benefits package to the benefit has increased from £25,000 operates programs for some of the their staff. to £50,000. At the same time country's most prominent construction conditional death benefit has increased businesses. In 2006 the Engineering These communication templates will to £35,000. These changes were Construction Industry Association (ECIA) vary according to the circumstances of effective from 7 January 2019. selected Welplan as its preferred welfare your employee. For example, one format benefits provider for employees engaged will be available for new starters, another in the engineering construction industry. when one of your benefits changes, and So, if you want to secure and retain Employee benefits are a cost-effective yet another when an employer decides the best skills within your firm, look no way to increase employee retention and to offer a new benefit. further than Welplan and give your recognise the value they add to your staff peace of mind and the company. Staff of the companies we How you communicate with your knowledge that they are properly work with often tell us good employee employees is up to you – initially valued. benefit schemes make them feel valued Welplan will be providing the templates and helps to provide peace of mind and in email, letter, booklet and poster T: 0800 195 8080 financial security. In addition to the ECIA formats but as time goes by we intend E: [email protected] scheme, Welplan offers a range of expanding this to best suit your W: www.welpan.co.uk market leading benefits from sickness, requirements. Possible future options 23/04/2019 11:34:35 Yearbook 2019.qxp_Layout 1 01/05/2019 16:21 Page 23 employee benefits | solutions for business Happy Workforce EmployeesProperty tell us that employee of ECIA benefits make them feel valued. We can help. Attracting and retaining skilled employees can be critical to business success. Providing the right range of benefits is essential. It’s time to look at the ECIA Welfare Benefits Scheme. Why chose Welplan? A proud heritage of providing leading death, accident, disablement and sickness benefits specifically for the construction sector since 1960. Benefit levels designed to meet the levels required by the National Agreement for the Engineering Construction Industry Welplan's range of benefit solutions help employers provide peace of mind and financial security for their employees A dedicated team of experts: on hand to help should you need us. To find out more visit www.welplan.co.uk our website or get in [email protected] touch with our team 0800 195 8080 Yearbook 2019.qxp_Layout 1 01/05/2019 16:22 Page 24 | 24 | ECIA Yearbook 2019 25 YEARS: 1994 – 2019 Regional updates Ken Kennedy Dave Redfearn John Eddleston Mark Baxendale Scottish Region Despite the lack of major mechanical construction projects in the Scottish Region during the past few months, ongoing R&M operationsProperty and TAR events at the Ineos and Petroineos plants ofat Grangemouth ECIA as well as at Exxon Mossmorran have continued to provide a solid workload for member companies. At Grangemouth the Hydrocracker TAR in April 2019 will employ some 850 in scope personnel and work on the chemical oxygen demand (COD) units will employ a further 200. The KG ethylene plant TAR in August is expected to employ some 1,300 personnel during the event. In terms of new-build, Ineos is investing in a state of the art, £350m energy efficient Power Plant to replace an existing 40 year old power station at Grangemouth. Construction will commence this year with mechanical operations scheduled for the latter part of 2020 and an estimated workforce of 250. This project is part of a £1b expenditure commitment recently announced by Ineos. £500m will also be invested in the Forties Pipeline System upgrade and a further £150m in a Vinyl Acetate Monomer (VAM) plant at Saltend. An additional furnace will be built on the Ineos ethylene plant to improve the efficiency of the plant and to increase its production capacity. Construction of the furnace will provide further work for 150 mechanical trades from the early part of 2020. At Exxon Mossmorran Fife Ethylene Plant (FEP) there will be a statutory outage during 2020 with the manpower levels yet to be determined. North West (incl. Sellafield) Following a fire at the Stanlow Refinery’s Shell Higher Olefins Plant (SHOP) the turnaround was rescheduled and the Plant owner (Shell) took the decision to close SHOP, and also its Alcohols units, as repairs were not considered to be economically viable. Although this resulted in a reduction of the workforce, other operations at the refinery continue. Sellafield continues to be the largest NAECI in-scope site in the UK with nearly 1300 personnel employed under the NAECI. The stakeholders are currently working on a site specific engagement initiative that will build on the solid foundation provided by NAECI. The client recently announced a new way of delivering majors projects that creates a 20 year collaborative partnership. Under the banner of Programme and Project Partners (PPP) it will create 4 business partners in Integration, Design and Engineering, Civils Construction Management and Process Construction Management. The client believes this will enable them to drive consistency and predictability in all their major projects and shows their clear intent for the future of the site. Wales and South West Valero are proposing to construct a £127m combined heat and power (CHP) cogeneration unit at their Pembroke Refinery. The unit will provide power to the refinery as well as supplementing the site’s steam demand, helping the refinery to maintain its competitiveness. An EPC Contract has been awarded to Fluor UK. Fluor have mobilised to the project and mechanical construction is expected to commence in May 2019. The Project is scheduled for completion in the summer of 2020. This, along with Valero’s purchase of the Milford Haven Fuel Storage Facility from SemLogistics, is welcome news for the region. The facility, located in Milford Haven, provides 8.5 million barrels of storage capacity and serves markets in Europe, the eastern United States and Africa. Port Talbot’s Steel Works’ Blast Furnace No 5 exploded catastrophically on 8th November 2001. Its repair was part of Tata’s commitment to safeguarding the future of steel manufacturing at the works, and was recently completed. The repair is expected to extend the Blast Furnace’s life by a further five to seven years. Tata Steel and Thyssenkrupp AG have signed a definitive agreement to create a new company by combining their European steel businesses in a 50/50 joint venture. European regulators have raised concerns that the merger could give the company too much control over market supply and prices for steel. It was reported that the companies have offered to divest two automotive steel plants in Europe and the European Commission is expected to make a decision on the merger shortly. Yearbook 2019.qxp_Layout 1 01/05/2019 16:22 Page 25 25 YEARS: 1994 – 2019 Engineering Construction Industry Association | 25 | The Association provides industrial relations advice and project support to its members through its network of regional managers (Employee Relations Executives). Regional boundaries may vary according to industry workload. Our regional managers report here on what’s happening in the region. If you wish to contact one of our regional staff please see page D06 for contact details. Northern New build in the region has been slow over the past year due to a poor climate for financial investment. However, there is the potentialProperty for new work in the future with Conoco Philips, Seal ofSands and the WiltonECIA site. MGT Teesside Limited is building the Tees Renewable Energy plant, a 299MW CHP Biomass at Teesport and the NAECI Category 1 project continues to be the main supplier of employment in the area. The £650 million project has Technicas Reunidas (in partnership with Samsung C&T) as the managing contractor and the employment peak involves over 1,000 people of varying skills. Project completion is expected in 2020. Repair and Maintenance work continues to provide both short term employment, in the form of planned shutdowns and turnarounds, and more permanent work in the region. Yorkshire & Midlands The Yorkshire and Midlands region continues to benefit from NAECI Category 1 project work at Ferrybridge as well as NAECI Category 1 ‘Basic’ projects. The Ferrybridge 2 Multifuel CHP, energy from waste project is identical to the Ferrybridge 1 project completed in 2016. The project has the same client, Scottish and Southern Energy – Wheelabrator as the first project and the same Managing Contractor, Hitachi Zosen Inova. The project is nearing its completion phase with an ongoing demobilization plan in place. The project peaked at over 600 employees and completion is expected during the second quarter of 2019. The Humberside NAECI Category 1 Basic “Trinity project” is a new build project that is designed to produce hardwood material from softwood chippings using a bi-product from the BP Saltend Petrochemical plant, the site upon which the Trinity project is situated. The Managing Contractor – Engie Fabricom began in scope work in Q3 2018 and site labour will peak at around 100 skilled workers. Construction of Intergen’s 300 MW Open Cycle Gas Turbine facility (part of an Energy Expansion plan) at Spalding in South Lincolnshire commenced construction in the summer of 2018 and is forecast to peak at no more than 100 employees. Atlantic Projects Ltd are the appointed Managing Contractor for the project. Scottish and Southern Energy (SSE) have announced the decision to proceed with plans to build a CCGT Power Station at Keadby, near Scunthorpe. The £350 million Keadby 2 project being developed by SSE and its technology partner Siemens, will be capable of producing 840 MW of electricity. The Supplementary Project Agreement (SPA) has been agreed and in scope work is scheduled to begin during the second half of 2019. The Saltend R&M site continues to offer long term employment for many local workers with additional employment provided during the shutdown periods. South East ExxonMobil continues to invest in the Fawley refinery and chemical plant with the announcement of more than $1 billion of investment. This will include a new hydrotreater unit (to remove sulphur from fuel) and a hydrogen plant, which together will also help improve the refinery’s overall energy efficiency. The investment will also help to reduce the need to import diesel into the UK. The detailed engineering and design is underway and construction is expected to commence in late 2019. Start-up is expected in 2021. The peak construction labour force is expected to be in the region of 1,000 personnel. Yearbook 2019.qxp_Layout 1 01/05/2019 16:22 Page 26 | 26 | ECIA Yearbook 2019 25 YEARS: 1994 – 2019 Unauthorised use of NAECI must stop Property of ECIA by Jock Simpson NJC Executive Chairman n May 2018, 40% of companies in membership of the ECIA were registered on Categorised sites or projects. A further 7% were solely registered on “IOther work. 53% of companies had no work or declared no work. Our collective agreement (NAECI) is simple process for any employer to bid Free riders, using NAECI which is paid much envied. It is all embracing, for work and to enter engineering for by NAECI Clients and ECIA proscriptive where it needs to be to construction with ready-made solutions companies. ensure compliance by both for employing and deploying employers and trades unions. It also operatives. Some companies” also pick and choose has more productivity enablers than when they wish to use the NAECI either any other collective agreement in the The cost of ensuring these wholly or in part. When challenged, their construction sector. Regrettably arrangements remain first class, up to answer is usually that they are mirroring these are seldom put to use meaning date and meet existing employment NAECI but not using NAECI. Such use that we are less efficient and less legislation falls to our Clients via ECIA is unauthorised and free riding. productive than we could be member companies. Unfortunately otherwise. there are a lot of free riders. Our In May 2018, 40% of companies in Agreement is available to purchase and membership of the ECIA were In addition, NAECI contains can be downloaded from our website. registered on Categorised sites or advantageous taxation arrangements to Good accessibility is necessary to projects. A further 7% were solely assist with accommodation and travel. ensure all of our stakeholders can utilise registered on Other work. 53% of There are only eight other collective its provisions. So, unauthorised, non companies had no work or declared no labour agreements in the UK which are ECIA contractors sometimes use the work. entitled to use similar provisions. NAECI either as it exists or in a plagiarized form where they pick and As well as monitoring new project The NAECI (copyrighted) collection of choose the bits they want. They pay development, the NJC also monitor terms and conditions ensure that it is a nothing towards its costs or upkeep. recruitment. Frequently we find job Yearbook 2019.qxp_Layout 1 01/05/2019 16:22 Page 27 25 YEARS: 1994 – 2019 Engineering Construction Industry Association | 27 | adverts for operatives to work on sites is being deployed and where we have telephone call. Where there is a which are neither NAECI sites nor sites engineering construction activities. So we response, it’s usually, we do not have where NAECI is registered under Other have begun a survey of engineering any work at this time! Work. Those adverts invariably say construction activities in the UK. We are Blue Book. A couple of years ago, I writing to companies of signatory These approaches are ongoing, so if you had an enquiry about NAECI provisions employers who apparently do not have hear from us, please be kind enough to and when I asked for further any registered NAECI work but who are reply so that our information is accurate information, it transpired that there members of one of our three signatory at the end of our survey which will be were people being paid NAECI rates employers’ associations. Current published when it is complete. This will while working on a Thames ferry! Yes, responses have not been encouraging. enable us to identify legitimate NAECI piracy comes to mind, wanton piracy. Mostly, we are not getting a reply even activity and expose free riders. Your help It reallyProperty is important to know where NAECI after following up initialof enquiries withECIA a will be much appreciated. Photograph courtesy of KAEFER Ltd Yearbook 2019.qxp_Layout 1 01/05/2019 16:22 Page 28 | 28 | ECIA Yearbook 2019 25 YEARS: 1994 – 2019 Shining a spotlight on salary and HR trends in 2019 Property of ECIA nnual pay awards still remain relatively constrained at well below three per cent. It By Tim Kellett Aappears unlikely they will increase beyond Paydata three per cent in the coming years whilst the current “political and economic uncertainty remains. the past ten years – or, on average, 2.3 per cent per year (compared to 1.3 per cent for the first three years). Annual salary increases Despite inflation continuing to fall, we analysed pay movements over the – ECIA members (table 1) annual pay awards and out-of-cycle last ten years and, in particular over the increases have increased since last past 12 months, as well as highlighting In keeping with previous years, the year. Pay pressures on key roles trends in other key HR metrics. most common pay settlement for ECIA remain as almost two thirds of members in 2019 is two per cent, employers tell us that they have Pay trends for ECIA although three per cent has been more targeted their 2019 pay awards on members (graph 1) common this year. This trend has seen high performing people in order to ” both the median and upper quartile retain them. Since the first edition of the ECIA survey, figures increase compared to the last pay has increased by 23 per cent over two years. Although economic and political uncertainty has continued to loom large in the last 12 months, 12 years of pay (Graph 1) constraints have induced employers to be more generous with their annual pay awards this year. At Paydata, we provide employers with pay insights and benchmarking data to ensure they are competitive with market practice on pay and benefits. This market competitiveness is essential in order to retain and motivate key talent. For many years ECIA members have used external benchmarking data to inform their annual review of pay and conditions. The ECIA’s annual Pay and Benefits Survey, published in August and September each year, is the source of benchmarking data for ECIA members. The rate of pay increases was highest between 2011 and 2014 and, although it Ahead of this year’s ECIA Salary Survey, slowed in the following years, pay has seen a larger increase more recently. Yearbook 2019.qxp_Layout 1 01/05/2019 16:22 Page 29 25 YEARS: 1994 – 2019 Engineering Construction Industry Association | 29 | Annual pay settlements – (Table 1) other industries (table 2) Pay budgets Lower Median Upper Mode Looking across other sectors, we have (% of current pay bill) Quartile Quartile seen a small and consistent increase 2019 2.0 2.3 2.9 2.0 between 2017 and 2019 although the 2.0 2.8 2.0 overall trend has been that they have 2018 2.0 generally remained between two per 2017 1.7 2.0 2.4 2.0 cent and three per cent. Like ECIA (Table 2) members, three per cent reviews have been more common this year across Pay budgets Lower Median Upper Mode all industries. (% of current pay bill) Quartile Quartile Our PAYawardProperty market database 2019 of 2.0ECIA2.5 3.0 2.0 reflects a broad base of industries in 2018 2.0 2.4 3.0 2.0 the UK. Our data reveals that 2019 2017 2.0 2.3 2.7 2.0 pay settlements look broadly similar, though marginally higher than last year. (Table 3) Other commentators such as the Out-of-cycle pay increase Lower Median Upper Mode Chartered Institute of Personnel and (% of current pay bill) Quartile Quartile Development quote broadly 2019 – ECIA members 0.8 2.0 2.8 - comparable figures for this year’s pay budgets: two per cent appears most 2019 – All industries 0.6 0.6 2.9 0.5 common, which is also influenced by 2018 – ECIA members 0.8 1.4 2.5 0.0 public sector increases. Pay freezes have been few and far The influence of inflation three per cent. It appears unlikely they will between in recent years, although (graph 2) increase beyond three per cent in the there have been marginally more coming years whilst the current political freezes this year when compared with CPI and RPI rose in both 2016 and and economic uncertainty remains. last year. 2017, which increased pay pressure on employers. Out-of-cycle pay Much like previous years, sector increases appear to be differences are notable with Property / Employers tell us that inflation has had a more prevalent (table 3) Consulting (3.0%), Construction (2.9%) significant influence on both their 2018 and House Building (2.7%) recording and 2019 pay awards. However, it should An analysis of the ECIA survey database higher median awards than other be stressed that annual pay awards still highlights that out-of-cycle increases industry sectors. remain relatively constrained at well below given to employees by ECIA members (Graph 2) Yearbook 2019.qxp_Layout 1 01/05/2019 16:22 Page 30 | 30 | ECIA Yearbook 2019 25 YEARS: 1994 – 2019 have notably accelerated compared anticipating difficulties in recruitment for ½ Pay and a broad range of benefits both to last year and all industries. the remainder of 2019 and into 2020. for key industry roles Furthermore, three quarters of ECIA ½ HR metrics – such as out-of-cycle This indicates that, despite difficult trading members surveyed stated that in order pay increases conditions in the sector, either external to attract the talent they need, they have pay market pressures or a lack of internal typically had to offer new recruits up to The collated results are only available to pay rigour have contributed to higher pay 10 per cent higher salaries than their participating ECIA members and will be increases outside of the usual review current employees. available again in August. Typically, cycle. For this reason, ECIA members around 25 key ECIA members contribute need to continue benchmarking their Voluntary labour turnover has also each year, providing pay details for roles to the wider industry to ensure they increased from eight per cent last year to thousands of individual employees. do not fall behind the labour market and 11 per cent this year. So too has overall lose their best talent. turnover, increasing from 10 per cent last Participating members receive a detailed Propertyyear to 15 per cent thisof year. This wouldECIAanalysis of the survey results that they Recruitment and appear to re-enforce the stated view of can use to compare their arrangements retention difficulties for recruitment and retention difficulties. to market practice. 75 key roles are ECIA members covered including specialist and Over 10 years of the executive positions in Project & Site Every ECIA member that we recently ECIA Salary Survey Management, Engineering, Planning, surveyed said they expected to have Technical and Functional Support. difficulties retaining people in the next 12 Last year saw the ECIA Salary Survey months. In 2018, a third of ECIA published in August, the earliest it has If you wish to receive this year’s survey members expected to experience ever been delivered in over 10 years. results or wish to benchmark any of recruitment difficulties in the following 12 This year’s survey continues to build on your roles, please feel free to contact months; a year on and this figure has our historic database of pay trends, Tim Kellett at Paydata on grown to 88 per cent of members analysing market trends on: +44 (0)1733 391 377. Committed to making lives better at work, Paydata has over 20 years’ experience in helping HR professionals manage their pay and reward practices. We currently work with Construction employers, o ering: • Market data - providing pay and bene ts benchmarking data for key sector positions. • Job evaluation - helping employers create an underlying salary structure. • Networking and advice - facilitating meetings of like-minded HR professionals within the sector to How can we help? exchange advice and common experiences. To discover more and to discuss your requirements, please contact us today via [email protected] or +44 (0)1733 391 377 1 1 14:25:28 Yearbook 2019.qxp_Layout 1 01/05/2019 16:22 Page 31 COLLABORATION INNOVATION EXCELLENCE Property of ECIA High-value Mechanical & Electrical engineering and construction services delivered the ‘Kirby Way’ www.kirbygroup.com London • Warrington • Glasgow • Dublin • Galway • Limerick • Brussels 14:25:28 Yearbook 2019.qxp_Layout 1 01/05/2019 16:22 Page 32 | 32 | ECIA Yearbook 2019 25 YEARS: 1994 – 2019 An extract from the ECIA Business Trends Survey Q1 2019 UK gross domestic product (GDP) The Retail Prices Index (RPI) was 2.4% 95% of all respondents indicated no grew by 0.3% in the three months in March 2019, down from 2.5% in change in Employment of non-UK to February 2019, and the Bank of February 2019. workers. The highest fall compared to England has forecast growth of Q4 was reported in Profit margin. about 0.2% for the first quarter of Brent Crude closed on 31st March at 2019. Property$67.98 per barrel. of ECIAAs for the annual trend, Work completed outside UK was reported The Bank maintained the interest rate With regard to the ECIA Business with its fourth highest position in the at 0.75%. The Consumer Prices Index Trends survey, the highest increase last five years. Skills availability held (CPI) 12-month rate was 1.9% in compared to the previous quarter was steady. UK new orders and March 2019, unchanged from noted in Total of new orders and Employment of non-UK workers February 2019. Present level of output, followed dropped and Profit Margin fell to its closely by Total numbers employed. lowest position in two years. Yearbook 2019.qxp_Layout 1 01/05/2019 16:22 Page 33 Property of ECIA Yearbook 2019.qxp_Layout 1 01/05/2019 16:22 Page 34 | 34 | ECIA Yearbook 2019 25 YEARS: 1994 – 2019 ECIA: Celebrating 25 years Property of ECIA Yearbook 2019.qxp_Layout 1 01/05/2019 16:22 Page 35 25 YEARS: 1994 – 2019 Engineering Construction Industry Association | 35 | 1994 – 2019 Property of ECIA Yearbook 2019.qxp_Layout 1 01/05/2019 16:22 Page 36 | 36 | ECIA Yearbook 2019 25 YEARS: 1994 – 2019 ECIA Regional Meetings in 2019 ECIA Regional meetings take place in forums for ECIA member companies to Safety, Employment Law, and to six regions: Northern, North West, receive and share information about the influence industry policy-making. South East, South West & Wales, Engineering Construction Market, Yorkshire & Midlands and Scotland & NAECI Related Updates, ECIA All ECIA Members companies can book N. Ireland in March, June and October. Productivity Improvements Committee a place(s) at the regional meeting by Our regular regional meetings are (EPIC), ECITB matters, Health and sending a booking form electronically. 2019Property regional meeting dates of ECIA Northern 12th June 9th October North West 4th June 1st October South East 5th June 2nd October South Wales & West 6th June 3rd October Scotland & Northern Ireland 11th June 8th October Yorkshire & Midlands 13th June 10th October Pipework & Mechanical Engineering ScopeProject of Management, services planning & cost control Outages / shutdowns/term services Procurement & Inspection Disinvestment Detailing Pipework installation Pipework fabrication Mechanical plant install Testing & LTQRs Pre-assembled units and racks Examples of materials we work with… carbon steels: ANSI, DIN…. f stainless steel’s: 304; 316, 904 exotics: duplex, super duplex, aluminium, nickel, titanium, chrome molybdenum, P5, P11, P22 & P91, hastelloy, incolloy, monel, plastics: PVDF, UPVC, ABS, polypropylene, polyethylene, lined piping Project or term service provision throughout the UK for the following industries Nuclear Oil & Gas Aerospace Subsea Power Chemicals Pharma /^ϬϭϰϬϬϭ͗ϮϬϭϱ͕ Healthcare For further information please call +44 151 355 9293 18001:2007, ISO9001:2015 & ISO3834-2:2005, Our services email:and systems [email protected] are backed by LRQA accreditation's or visit– www.lakervent.co.uk Our people are key to our success. 1 1 Yearbook 2019.qxp_Layout 1 01/05/2019 16:22 Page 37 CITY WORKSPACE Property of ECIA SMART SMART SPIE UK is a smart engineering and Delivering solutions to key sectors: technology-driven solutions provider Industry Tunnels for the built environment. & Public Lighting Financial Healthcare We engineer, manage and optimise smart spaces and places & Professional Pharmaceutical leveraging emerging technologies for our customers that Education improve where people work, learn and live. & Life Science Energy Transition Retail & Leisure & Renewables Transport Data Centres SPIE, sharing a vision for the future & E-Mobility @SPIEUK SPIE-UK www.spieuk.com Yearbook 2019.qxp_Layout 1 01/05/2019 16:22 Page 38 | 38 | ECIA Yearbook 2019 25 YEARS: 1994 – 2019 ECIA External Representatives At 31 March 2019 AceOFFICE Industry BEARERS Steering Group M Hockey ECIA C Claypole Site Service Engineering Ltd D Whitehouse Doosan Babcock Ltd Client Construction National Safety Group (CCNSG) R Ash ECIA (Chair) G Duncan Balfour Beatty Kilpatrick C AbbeyProperty Altrad Services of ECIA K Hall Jacobs UK Ltd Engineering Construction Industry Training Board Council G Banham Hitachi Zosen Inova UK Limited M Hockey ECIA (Chair) M Wilkins Morgan Sindall Construction and Infrastructure Limited Board M Hockey ECIA M Fletcher Doosan Babcock Ltd C Claypole Site Service Engineering Ltd S Hicks Altrad Services Audit & Risk Committee M Hockey ECIA (Chair) Health & Safety Executive Construction Industry Advisory Committee (CONIAC) 1. Keeping Pace with Change. 2. Managing Risk Well. 3. Fire Working Group R Ash ECIA Joint Staff Group S Bailey ECIA National Joint Council for the Engineering Construction Industry Council M Hockey ECIA G Hughes Enigma Industrial Services Ltd S Bailey ECIA C Gilmour Doosan Babcock Ltd G Harvey Balfour Beatty Kilpatrick J Simms Beaver Management Services Ltd Executive Committee M Hockey ECIA SHE Committee R Ash ECIA N Morris Siemens S Phillips Tecnicas Reunidas UK Ltd Make UK Health, Safety & Environment Policy Committee R Ash ECIA Affiliate Board M Hockey ECIA Yearbook 2019.qxp_Layout 1 01/05/2019 16:22 Page 39 25 YEARS: 1994 – 2019 Engineering Construction Industry Association | 39 | ECIA Council Representatives At 31 March 2019 OFFICEOffice BEARERSBearers Deputy President: Mr D Hunter United Kingdom Construction & Engineering Company Vice President: Mr I Guy Wood. Vice President: Mr S Lafferty Balfour Beatty Kilpatrick Immediate Past President: Dr G Banham Hitachi Zosen Inova UK Limited Past President: Mr M Wilkins Morgan Sindall Construction and Infrastructure Limited ManagingProperty Contractors of ECIA Ms S Cook Fluor Ltd Mr R Dean GE Power Mr J Hornby Jacobs UK Ltd Mr P Hughes Black & Veatch Limited Major Contractors Mr C Gilmour Doosan Babcock Limited Mr P Harrington Wood. Mr S Hicks Altrad Services Mr M Lehal GE Power Ms D Robson Balfour Beatty Kilpatrick Mr D Tiley Altrad Services Mr W Tivnen Siemens Energy Service Regional Representatives Mr B Arnesen MII Engineering Limited – South West & Wales Mr C Claypole Site Service Engineering Ltd – Yorkshire & Midlands Mr S Fishlock Balfour Beatty Kilpatrick – Northern Mr C Foulkes Wood Group Industrial Services Limited – Yorkshire & Midlands Mr M Grewer Tecnicas Reunidas UK Limited – Northern Mr J Mellon Doosan Babcock Ltd – Scotland Mr D Redmond Bilfinger UK Ltd – North West Mr T S Smedley Jenkins & Davies Engineering – South West & Wales Mr D Taylor Doosan Babcock Ltd – Scotland Mr M Ventre Laker Vent Engineering Ltd – North West General Members Mr D Boden-Hook Wright Brothers Industrial Services Ltd Mr K Lightning Lightning Group of Companies Mr B Nolan Atlantic Projects Company (UK) Ltd Committee Chairs Mr G Duncan Balfour Beatty Kilpatrick Managing Director Mr M Hockey ECIA Members Directory 2019.qxp_Layout 1 01/05/2019 15:49 Page 1 ING AT 25 R Y B E E A L R E S C • • 19 9 Property of ECIA94 – 201 Certificate Number 5529 ISO 9001 MEMBERS DIRECTORY 5th Floor, Broadway House, Tothill Street, London SW1H 9NS T: 020 7799 2000 • E: [email protected] • W: www.ecia.co.uk Members Directory 2019.qxp_Layout 1 01/05/2019 15:49 Page 2 Property of ECIA NationalNational AgreementAgreement forfor thethe EngineeringEngineering ConstructionConstruction IndustryIndustry Visit the NJC website for: G NAECI Registration G 2019-2020 rates tables G Guidance notes, communiqués and latest news G Health & Safety information G Monthly NAECI industry reports www.njceci.org.uk Spirella House, 266-270 Regent Street, London W1B 3AH Tel: 020 7734 0244 Email: [email protected] Members Directory 2019.qxp_Layout 1 01/05/2019 15:49 Page 3 25 YEARS: 1994 – 2019 Engineering Construction Industry Association | D03 | Contents of Members Directory Introduction to directory D04 ECIA Head Office contact details D04 ECIA Head Office staff contacts D05 ECIA regional staff D06 ECIAProperty member services of ECIA D07 Managing Contractors D08 Major Contractors D11 ECIA Employment Business members D19 Members Directory A to Z D23 ECIA Past Presidents D44 ECIA Head Office Staff Simon Bailey Mike Hockey Terence Woolmer Email: [email protected] Daryl Canfield Katarina Hanova Ludi Flour Members Directory 2019.qxp_Layout 1 01/05/2019 15:49 Page 4 | D04 | ECIA Members Directory 2019 25 YEARS: 1994 – 2019 Introduction to directory This directory of ECIA membership is produced as part of the Association's service in facilitating effective stakeholder communication, and is part of the value adding service that we provide to our members. This directory includes details of our next. Readers wishing to know whether upon receipt of their annual member companies as well as contact a particular firm is in membership subscription, as evidence of current informationProperty for ECIA staff (below and should contact ECIAof at the addresses ECIAmembership. opposite). listed or visit the ECIA website at This Directory contains only those www.ecia.co.uk. While the printed directory is updated companies that met their financial annually, membership changes do ECIA members are issued with an obligations to the Association by occur between one edition and the annual ECIA Membership Certificate, 31 March 2019. ECIA Head Office contact details Address: ECIA 5th Floor Broadway House Tothill Street London SW1H 9NS Tel: 020 7799 2000 Email: [email protected] Web: www.ecia.co.uk Twitter: @ECIALondon NOTE: all email addresses for head office staff are in lower case i.e. [email protected] All rights are reserved. No part of this publication may be reproduced, stored in a mechanical retrieval system, transmitted in any form or by any means electronic, mechanical, photocopying, recording, or otherwise, nor used for marketing or unsolicited marketing purposes, without prior notification to and written permission of the ECIA. Application for permission should be in writing and addressed to the Administration Manager, ECIA, 5th Floor Broadway House, Tothill Street, London SW1H 9NS. ECIA Yearbook designed and published by Eureka Marketing Solutions, London (Tel: 020 7801 1480). COPYRIGHT: Engineering Construction Industry Association. Members Directory 2019.qxp_Layout 1 01/05/2019 15:49 Page 5 25 YEARS: 1994 – 2019 Engineering Construction Industry Association | D05 | ECIA Head Office staff contacts Mike Hockey Managing Director Tel: 020 7654 1592 Email:Property [email protected] of ECIA Simon Bailey Operations Manager Tel: 020 7654 1593 Email: [email protected] Terence Woolmer Health and Safety Manager Tel: 020 7654 1598 Email: [email protected] Daryl Canfield Administration and IT Manager Tel: 020 7654 1590 Email: [email protected] Katarina Hanova Senior Admin and Events Co-ordinator Tel: 020 7654 1597 Email: [email protected] Ludi Flour Admin Assistant Tel: 020 7654 1594 Email: [email protected] Michaela Preckova Virtual Assistant Email: [email protected] Members Directory 2019.qxp_Layout 1 01/05/2019 15:49 Page 6 | D06 | ECIA Members Directory 2019 25 YEARS: 1994 – 2019 ECIA regional staff ECIA’s Regional Staff are the first point of contact for members for advice and assistance on the NAECI, employment relations and employment law. SCOTLAND AND NORTHERN IRELAND – Ken Kennedy ECIA Tel: 01698 268 529 59 AvonProperty Street Email: [email protected] ECIA Motherwell Scotland ML1 3AA YORKSHIRE AND HUMBERSIDE – David Redfearn ECIA Tel: 0113 225 6846 4 Norton Road Email: [email protected] Roundhay Leeds LS8 2DE SOUTH WEST, WALES AND NORTH WEST – John Eddleston ECIA Tel: 01495 291 318 1 Beech Tree Crescent Email: [email protected] Blaina Abertillery NP13 3JA NORTH WEST – Mark Baxendale ECIA Tel: 020 7799 2000 / 07860 755 906 11 The Courtyard Email: [email protected] The Beeches Chester CH2 1PH NORTHERN AND SOUTH EAST MGT Teesside Site – David Redfearn Tel: 0113 225 6846 Email: [email protected] ExxonMobil, Fawley – John Eddleston Tel: 01495 291 318 Email: [email protected] Members Directory 2019.qxp_Layout 1 01/05/2019 15:49 Page 7 25 YEARS: 1994 – 2019 Engineering Construction Industry Association | D07 | ECIA member services Employment Relations / As well as free advice (some of which committees, seminars, regional can be found on our website), the key meetings and events keeps you Employment Law elements of ECIA’s Health and Safety abreast of what’s going on in the Simon Bailey Manual and SHE awareness training industry and presents you with courses are available to all members. networking opportunities. A good relationship between a Where advice beyond the scope of a ECIA is ISO9001 certified and company and its employees is telephone call or letter is needed then committed to providing a quality service essential. As employers, ECIA member such issues can be resolved through to its members. companiesProperty must be familiar with the our consultancy service.of The ECIA barrage of legislation on employees’ fundamental principle underpinning our For membership administration and rights, the employment terms and consultancy is that advice is finance queries please contact Daryl conditions written into the NAECI and a individually tailored to meet the Canfield. multitude of complex employee member’s needs. relations and legal procedures. In summary, members have access to Secretarial and The ECIA’s experienced regional staff the following core services: Administration team and Operations Manager are available to help with all manner of I Free advice on basic management Katarina Hanova / employment-related queries as well as issues e.g. legal changes, practical Ludi Flour keeping members informed about the problems, and HSE requirements The initial point-of-contact for fast-moving world of employment law. I Consultancy service for more general member queries, publications In summary, member companies substantial issues e.g. reviewing and events. benefit from the following services: management procedures, site I Advice on the interpretation and inspections/audits, accident application of the NAECI investigation, policy review Membership I The activities of member companies I Advice and information on local Seminars and training sessions arrangements tailored to site concerns include design and procurement, project management, construction, I Assistance in negotiating and I Regular ECIA SHE Awareness installation, erection, decommissioning, drafting local agreements training courses dismantling and re-erection, together with the repair and maintenance of I Representation at NAECI dispute I ECIA Health and Safety Manual power plant, oil and gas refining hearings (CD ROM or hard copy). equipment, steel structures and I Up-to-date information on Membership Administration bridges, steelworks and other primary employment law production plant, chemical and and Finance petrochemical plant, tankage, I Guidance on current pay and Daryl Canfield pipework, pressure vessels, pumps, benefit issues. compressors, switchgear, Whether you are a seasoned instrumentation and associated site Safety, Health and contractor, specialist firm, major or engineering construction activities and managing contractor or simply new to process plant of all descriptions. Environment Engineering Construction, membership Terence Woolmer of the ECIA brings you help and Membership is open to any company support on all of your NAECI in scope engaged in these activities and related Safety, health and environment (SHE) work. work on construction sites or in head remain high on the political agenda and offices. the rate of new developments is ECIA provides its members with constantly increasing. Keeping up to information and advice. As an ECIA How to join date with changing standards is a major member you undertake to comply with challenge. In an increasingly litigious the requirements of NAECI on in scope All enquiries should be addressed to society the financial risks associated work and you have access to advisory the Administration Manager in London with failure are great. ECIA’s SHE and consultancy services through our (tel: 020 7654 1590) or to the manager represents members’ interests regional and head office staff. You also Employment Relations Executive in and keeps them abreast of current SHE have access to the Welplan Benefits whose area your company or contract matters. Scheme. Participation in our is based (see page D06 for details).