Government urged to delay VAT changes to avoid disruption

The Government has not properly prepared the construction industry for major VAT changes coming in October and needs to delay their implementation to avoid chaos, the Federation of Master Builders (FMB) has said in a letter to the Financial Secretary to the Treasury.

New data published by the FMB shows that:

  • Over two-thirds of construction SMEs (69%) have not even heard of reverse charge VAT; and
  • Of those who have, more than two-thirds (67%) have not prepared for the changes

This comes after HMRC published guidance on reverse charge VAT just four months before the changes were due to come into place. This has been criticised for being inaccessible to most in the industry and is even contradictory in places. HMRC was also due to have a dedicated website and marketing campaign for the changes to help prepare the hundreds of thousands construction companies who will be impacted by the changes.

Reverse charge VAT will have a serious impact on cash flow, as well as being a significant administrative burden, fundamentally changing the way construction companies invoice their clients and pay their taxes to HMRC.

Brian Berry, Chief Executive of the FMB, said “Construction companies are already struggling with Brexit uncertainty, sky-rocketing material price rises and skill shortages and reverse charge VAT is yet another thing for them to deal with. What makes things worse is that HMRC has failed to deliver on its promise to help the industry to prepare. The guidance is not user-friendly and even tax experts are scratching their heads over it.”

“It’s therefore not surprising that the vast majority of construction SMEs are not aware of the impending changes, despite widespread promotion by the FMB. Small business owners are busy people and clearly they don’t have time to read everything we send them. For those who are aware, they haven’t had a chance to change their systems yet as they were waiting for guidance to be published that has only just emerged. That’s why we are calling on the Government to delay the changes by another six months and to use the extra time to improve the guidance and work with us to undertake a more intensive communications campaign. HMRC should also consider holding workshops across the country to explain the changes.”

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Plan To Build 10 Offshore Wind Power Hubs In North Sea Deemed Feasible

by Steve Hanley

The North Sea Wind Power Hub program — a consortium consisting of European energy companies  TenneT, Energinet, and Gasunie together with the Port of Rotterdam — is seen as a way for the Netherlands, Belgium, the UK, Norway, Germany, and Denmark to meet their goals for decarbonizing their economies as agreed to in the Paris climate accords in 2015. After extensive studies and in consultation with all appropriate government stakeholders, NSWPH has announced that its plan for up to 10 offshore wind energy hubs is technically feasible

The consortium says its goal is to “generate energy from renewable sources while simultaneously realizing the same at the lowest possible environmental impact and cost.”

“In the future (after 2030), once large, far-offshore wind regions have been defined for development, it will be possible to develop several hubs that will act as central platforms for supporting the infrastructure required to transport the energy, e.g. for converting electricity into gas (including and in particular green hydrogen) instead of using the offshore converter platforms commonly used at the moment.

“The relevant wind power capacities in question range from 70 to 150 gigawatts by the year 2040 and up to 180 gigawatts by 2045 in the North Sea and are intended to be developed using a modular, gradual approach. Depending on the scope of the development, the NSWPH could lay the foundation for supplying hundreds of millions of Europeans with green energy.”

According to an article by Marine Executive, the three types of foundations that could be used for the hubs are:

  • Sand island for 12, 24, or 36 GW installations with an approximate construction time of eight years
  •  Caisson island in shallow waters for up to 6 GW capacity with estimated construction time of three years
  • Platforms that use a jacket or gravity-based structure with an approximate construction time of three years

While island-based foundations can reduce investment costs and enable larger scale interconnection hubs at lower costs, the smaller platforms can reduce environmental impact, planning risk, and construction timelines.

Getting Power To The Shore

The first hub and spoke project will likely be connected to the shore using undersea cables, but for larger hubs located further offshore in deeper water may use the electricity generated to create hydrogen gas which would then be shipped ashore.

For any given hub size, the total investment costs for the transmission assets were found to be similar for all-electric, all-hydrogen, and combined electricity and hydrogen configurations. Also, the spatial requirements are similar for the different configurations.

The fact that the plan is feasible does not guarantee it will become a reality, of course. But it does mean energy companies in Europe are thinking in terms of lowering carbon emissions in the electrical sector, a vital part of meeting the objectives of the Paris climate accords.

 

Source: Cleantechnica

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Right-to-buy scheme soon to turn 40

Since its inception, the right-to-buy scheme has been a great topic of debate in the UK. As we approach the election this week the controversial scheme is once again the subject on everybody’s lips. Buildingspecifier.com Editor Joe Bradbury discusses how right-to-buy has affected Britain – for better or worse.

Over 2 million people have bought their home from the British stock of social housing since it was introduced in 1980. This is seen as both good and bad news, dependant on which side of the fence you are viewing it from.  On the plus side, it has helped millions of people to make that first tentative step onto the property ladder. However, it has also massively depleted the social housing stock, resulting in a housing shortage and spiralling property costs which has thrown the housing industry into chaos.

In England the current government staunchly defends the general principle of the right-to-buy scheme and plan to continue it, should they be successful at the ballot boxes this Thursday. In stark comparison, Scotland recently abolished the right-to-buy scheme, which illustrates just how much the right-to-buy has divided the UK on opinion in the space of 40 years.

Right-to-buy ended for all council and housing association tenants in Scotland as a result of the Scottish Housing Bill which was passed by the Scottish Parliament on 25th June in 2014 and became an Act when it received Royal Assent on 1st August of that year. The SNP are even buying back council housing from people who have purchased their home under the scheme, in a bid to undo some of the damage that has been done.

So what has the right-to-buy scheme actually done for Britain over its rocky 40 year history?

It increased house ownership

In the 1980’s, right to buy encouraged more people to buy their homes throughout the UK. We are now experiencing a paradigm shift as house prices soar out of reach for many first-time buyers. Despite it now seemingly resulting in the exact opposite, home ownership increased exponentially in the 80’s, proving that at least for a short time, it worked!

It boosted renting in the UK

As potential first-time buyers now struggle to raise enough money to cover a deposit for a house or earn enough to cover the mortgage, the idea of home ownership has sadly become a pipedream for many. The only other option available for people who wish to move out of their parents’ home is to rent, which consequently has resulted in a large boost in the buy-to-let section of the housing market – true Thatcherism at play!

Housing shortage/crisis

There is now undoubtedly a shortage of council-owned social housing across the UK, replaced instead with privately owned “affordable housing,” which can, at times, be a contradiction in terms. In order to be classed as affordable, housing associations can charge up to 80% of the local market rental costs. In London, where the rents are frankly staggering, this means that the affordable housing that has replaced the social housing is equally as unobtainable for people who have always lived in the area as the very concept of buying a house. This is not the purpose of social housing and this is where the right-to-buy has failed – spectacularly.

In summary

It seems that in the short term the right-to-buy scheme was highly profitable for many. However, as time passes it has raised further issues that have only been realised with the benefit of hindsight. These issues have plunged the housing market into disarray, suggesting that what worked in the 80’s certainly isn’t working now.

The policy most certainly encouraged its primary objective of increasing home ownership throughout Britain but has ultimately resulted in increased demand for private rental properties; the exact opposite of what it initially intended to achieve. Increasing investment in the buy-to-let market has pushed prices out of the reach of many first-time buyers, creating a self-perpetuating state of crisis. A place to call home shouldn’t be an unobtainable dream; it is a fundamental right for everybody.In conclusion, right-to-buy is littered with hypocrisies and contradictions that have undermined and devalued what was once considered a good idea. If whoever wins the election intends to continue the right-to-buy scheme, many issues would need to be addressed urgently and it would need to be rebranded if it stands any chance of regaining the trust of an injured property market. We can forgive, but we can never forget.

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Visqueen keeps methane at bay

A water pumping station built to provide a vital back-up supply for Birmingham is being protected from an ingress of potentially deadly methane by Ultimate GeoSeal, the waterproofing and gas protection system from Visqueen.

The station at Lickhill near Kidderminster draws water from the River Severn which is then pumped over 16 miles to Frankley treatment works, south of the city.

It was commissioned by Severn Trent Water so that the Elan Valley aqueduct that normally supplies Birmingham could be closed for annual maintenance, and also to provide an alternative water source in an emergency.

The Lickhill station is in an area where methane in the ground was a concern and, as a consequence, the project was classified as a Characteristic Situation 2.

James Walsh, Technical Support Manager for Visqueen, explained that coming up with a suitable gas protection and waterproofing solution for such a challenging scheme involved more than just specifying the right product. It also required a high level of technical knowledge and design expertise.

“While having an in-depth understanding of the industry guidance and regulations is essential, it also requires an understanding of construction methods and build sequencing, and being able to offer a professional judgement that can only be gained from experience,” he said.

“Stopping harmful gases and contaminants from entering a building is a human health issue, and, therefore, the Visqueen technical team had a massive responsibility to ensure the building and its occupiers are safe.”

The design team was mindful of the Abbeystead disaster in 1984, when methane ignited at the Lancashire hamlet’s water pumping station, leading to the deaths of 16 people. Industry guidance and regulations have been written since then to support gas protection designers when designing such schemes.

Visqueen Ultimate GeoSeal is a pre-applied membrane and for Lickhill it was used not only for its gas resistant properties but also for waterproofing, as the 16-metre deep main pumping station shaft passes through the water table, also known as the saturated zone.

The membrane was applied to the piles extending 18m below ground level and also to the 12-metre diameter base of the shaft.

James added: “Robustness is also of key importance for demanding civil applications such as this as the membrane, which is twice the thickness of competitor products, must remain intact for the lifetime of the structure.”

Visqueen Ultimate VOC Blok, a flexible membrane suitable for brownfield applications which forms a barrier to volatile organic compounds and ground gases, was applied below the concrete slab and pre-cast planks of a number of support buildings.

Positioned at ground level, the specification for these buildings also required an under-slab ventilation system to exhaust and disburse to atmosphere any harmful gases present under the building. This was achieved with a full vent blanket using Visqueen Gas Vent Matting and Pro Gas Vent Boxes.

The main contractor on the project was Barhale plc, with Nicholas O’Dwyer the engineering and environmental consultant and Prestige Air Technology the installer. Independent verification in accordance with CIRIA C735 was by ASL Environmental.For further information on gas prevention and waterproofing solutions, or to arrange a CPD presentation, or to attend a gas protection workshop, visit www.visqueen.com.

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Brexit doubts grip construction

LONDON, July 2 (Reuters) – Britain’s Brexit crisis tipped the country’s construction industry into its sharpest fall in a decade in June, a survey showed on Tuesday, in a stark sign of how quickly the world’s fifth-biggest economy is slowing.

The IHS Markit/CIPS construction Purchasing Managers’ Index (PMI) plunged to 43.1, the lowest reading since April 2009 when the country was gripped by the global financial crisis and way below any forecast in a Reuters poll of economists.

The yield on 10-year British government bonds sank to its lowest level in nearly three years as investors, already anxious about the prospect of a no-deal Brexit under the country’s next prime minister, took fright at the scale of the fall.

Construction accounts for only 6% of Britain’s economy and economists say the PMI surveys can overstate the degree of turning points in gross domestic product.

But there have been other signs that overall activity has stalled, and possibly even contracted, in the second quarter.

On Monday, a PMI for Britain’s manufacturing sector — which represents 10% of the economy — also showed a fall in activity in June as the global economic slowdown hit demand for exports, adding to the drag from Brexit worries.

Bank of England data meanwhile revealed the slowest growth in five years in borrowing by consumers, whose spending has helped cushion the economy from Brexit.

Samuel Tombs, an economist with consultancy Pantheon Macroeconomics, said the construction survey was “a worrying sign that the damage wrought by Brexit uncertainty is building”.

The hit was felt across the breadth of the sector: homebuilding shrank for the first time in 17 months, commercial work fell for the sixth consecutive month and civil engineering contracted by the most since October 2009.

Shares in UK housebuilders Persimmon, Taylor Wimpey and Barratt Developments all fell while the broader UK stock market was up.

Tim Moore, associate director at IHS Markit, said it was “almost impossible to sugarcoat” the survey.

“In particular, new orders dropped to the largest extent for just over 10 years, while demand for construction products and materials fell at the sharpest pace since the start of 2010,” he said.

There was one potential silver lining: job cuts were marginal and some firms said they had retained staff in anticipation of a recovery in sales.

Tombs at Pantheon Macroeconomics said the sector could experience a quick recovery around the turn of the year, if the Brexit deadline of Oct. 31 is delayed again.

In campaigning for the leadership of the ruling Conservative Party, both candidates to replace Theresa May as prime minister have said they are prepared to take the country out of the European Union without a transition deal if necessary.

The second-quarter slowdown in the economy contrasts with a strong start to 2019, when companies rushed to get ready for the original March 29 Brexit deadline.

A PMI for Britain’s dominant services sector, which is due to be published on Wednesday, is expected to show only marginal growth in June, according to economists polled by Reuters.

by William Schomberg

SOURCE: Yahoo Finance

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Vortice welcomes two new team members to strengthen their Sales and Technical team

Carl Freeman and Kim Ellis have recently been welcomed to the Vortice team in Burton upon Trent. Carl has joined as Sales Manager for the London and South East area and brings a wealth of experience from working in both the electrical wholesaler and ventilation industry for many years. Carl enjoys spending time with friends and family, runs a fitness club, as well as playing golf and running in his spare time.

Kim joins as Technical CAD Manager from a building services consultancy where she was Senior AutoCad and Revit Technician. Kim is a key addition to the technical team, the role will include designing and quoting for various ventilation schemes including heat recovery designs for customers. In her spare time Kim likes to keep fit and run.

General Manager Kevin Hippey said “Both new members of our team are already having an impact in their specialties and we are very pleased to welcome them into the business. Having another member in technical further enhances our design service”

Vortice supplies energy efficient ventilation systems for the domestic and commercial markets.

For more information about products visit the website www.vortice.ltd.uk
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Heat Interface Units can be commissioned & maintained remotely over the internet

For any residential building project, it would be fair to say that time saved on site is hugely beneficial for developers, contractors and housing associations alike, helping to reduce project costs and enabling residents to occupy properties as quickly as possible. With this in mind, Evinox Energy has introduced remote commissioning and warranty validation for their ModuSat heat interface units (HIUs), which can significantly reduce the cost of commissioning and time spent on site by engineers manually checking and adjusting settings.

Many other heat interface units for communal and district heating developments require an engineer to physically attend site to set-up every individual unit manually, adding time and cost to the project. Evinox’s electronically controlled ModuSat HIU’s feature SmartTalk communication technology and can be connected over the internet to remote servers, enabling Evinox to check the operation of each unit remotely and adjust settings where required.

Once ModuSat units are installed and ready to be commissioned the following quick and simple process takes place –

  • Installer Registers ModuSat Units Using Evinox’s Online Registration Portal
  • Evinox Check the Operation of Each ModuSat Unit remotely
  • Evinox Visit site to inspect a sample of units (Around 10% of the total units)
  • Evinox will then certify the units and issue certificates
  • The Warranty period begins

The benefits don’t just end there! During the aftercare period, following practical completion, Evinox’s SmartTalk remote communication system enables checks to be made and faults to be diagnosed away from site. Just think about the costs incurred every time an engineer is called to site, well these costs can be avoided using Evinox’s communication system to adjust settings remotely.

It is also important to factor in on-going servicing, which maximises the life of the Heat Interface Unit and ensures optimum performance of both the HIU’s and also the wider heat network. Evinox’s SmartTalk® communication system enables them to carry out scheduled maintenance checks remotely over the internet. The system in each apartment can be fully controlled remotely, including timings and settings, with remote diagnostic capability and client support. This can avoid unnecessary call-outs as a result of user error. Fault alarms can also be checked by testing the operation of components.

Evinox offer after-care service and maintenance plans that are available with one or two-year contracts providing flexibility, and additionally, combined packages for energy billing and maintenance, all under one roof and with discounts available.

Find out more about Evinox’s Heat Interface Unit Remote Warranty Validation and Service and Maintenance Plans by visiting www.evinoxenergy.co.uk or contact Evinox at info@evinox.co.uk for further information.
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How to choose a structural warranty provider

The latent defects market has increased significantly in recent years, with there now being more companies in the market than ever before. As such, it can be difficult to know where to look and what to look for.

In the following article we explore the varying aspects of a quality provider and some questions you can ask during your decision process.

The Cover

Different structural warranty policies do not necessarily carry the same level of cover. Whilst some differences in cover may be subtle, others may be quite drastic, possibly leaving your buyers unprotected should something go wrong. There is also no consistency on the level of excess or financial limits. Although the best way to thoroughly understand any insurance policy is to read it in full, that can often be very time consuming. Therefore, we’ve thought of a few questions that could be useful to ask:

  • What is the policy excess?
  • Does the policy include a defects period?
  • What is the financial limit for each property?
  • Is there an overall policy limit?
  • Is water ingress excluded from cover

The Insurer

More often than not, structural warranty companies will provide insurances policies that have been underwritten by insurance companies, rather than underwriting the policy themselves. This means that any claims on the policy will be paid by the insurer. Compared to most common insurance policies, structural warranties last for 10 or 12 years, meaning that it’s even more important to check the quality of the insurer and to ensure that they will be around for the entire duration of the policy. One way of doing this is to check who is insuring the policy and then to check their financial rating. The following link is a useful tool for checking this: http://www.insure.com/interactive-tools/ sandp/define.jsp

Risk management and Technical Support

Although you are purchasing insurance cover, it is worth bearing in mind that it is the warranty provider that you will be working with for the duration of the build. As such, it is good practice to understand how they operate in order to determine whether they’re the best fit for how you work on site. Some question you could ask are…

  • Do they have clear technical standards?
  • Do they employ their own surveyors?
  • What technical support can they provide?

Customer Service

Another important aspect of your warranty provider is the quality of customer service they provide; after all, you will be dealing with the customer service department of your chosen provider a lot over the duration of your build, as well as them issuing all your relevant certificates. So, what do you need to know?

  • Will you have a dedicated account manager?
  • How will you track and measure site performance?
  • How quickly can you expect to get a response to your queries?
  • Will you be provided with any homeowner feedback?

The level of a company’s experience is an important factor across all sectors and all industries, so why would the structural warranty industry be any different? To get a measure of how experienced a company is, you could consider asking the following questions:

  • How long have they been providing structural warranties?
  • Are they a member of the Consumer Code for Home Builders?
  • Are they accepted by all major mortgage lenders?

Value

Rather than focusing just on monetary values, it is worth looking at value of your provider on the whole. Of course it’s vital to look after those all-important purse strings, but it’s also a must to consider the overall value from your chosen provider. By asking the above questions, and making sure you are satisfied with the answers, you should be able to better understand the value that your chosen structural warranty provider will be able to contribute to your build.

To find out more about our range of structural warranties call 0800 107 8446 or visit www.premierguarantee.com
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Altro Takes A Fresh Look With Bauhaus-Inspired Solutions

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Commercial interior surfaces specialist Altro has introduced stunning new high-design ranges to its floors, doors and walls package. Delivering premium aesthetics with outstanding durability, all backed by Altro’s sector-leading support and expertise, Altro Ensemble™ modular flooring system and Altro Whiterock™ wall designs wall sheet are ideal for office, retail and hospitality environments.

New Altro Ensemble modular flooring system is the next generation of luxury vinyl tiles. From colour blocking to geometric patterns, with a range of plank and tile sizes and textures, Altro Ensemble gives design freedom to create luxurious floors for commercial interior spaces. With 57 options to mix and match, the modular flooring system has natural wood and stone designs and bloc colours too. Altro Ensemble is 2.6mm thick with a 0.55mm wear layer, 15dB sound reduction qualities and added comfort underfoot, with minimal residual indentation and excellent durability. A truly exceptional material, it combines these features with unique flexibility and is lightweight, making it easy to transport, cut and handle for installation.

In developing the new Altro Ensemble collection, the design team has taken inspiration from the Bauhaus design school’s philosophy of bridging the gap between form and function to engineer products that meet the customers’ biggest challenges, such as the need for cleanability, sustainability and flexibility. The result is a premium modular flooring system that offers variety and design freedom to create sophisticated, contemporary and striking designs. It also has the benefits of local sustainably sourced raw materials made to Altro’s exacting manufacturing standards, which ensure high quality, excellent durability and high-performance characteristics.

Altro Ensemble is the perfect partner to Altro Whiterock wall designs – a new vision in wall decoration with natural wood, stone and linen options plus stunning metallic designs to give elegance to interior walls.

Renowned for high quality solutions backed by market-leading customer service and technical support, Altro has been at the forefront of innovation for almost 100 years. As a family-founded business, Altro has a strong sense of its values and a way of thinking that puts people’s needs at the heart of its work. It’s a human-centred approach to designing for the demands of 21st century life.

The new ranges are the natural progression of tried and tested products, each harnessing decades of research and expertise in the UK and in Germany, with extensive customer feedback integrated into the development process.

Although new to the UK, Altro Ensemble modular flooring system is the latest generation of a product which has been designed and manufactured in Germany, where it has enjoyed success for many years and is an excellent example of German engineering at its best. A tried and tested product, it has undergone an extensive redesign process which has benefited from the combination of existing technology and new expertise from several sources including the team in Germany, as well as the contribution of award-winning colour consultant Knut Völzke.

Altro Whiterock wall designs are the latest development from Altro’s UK design and development team, building upon decades of experience in wall sheets. The new range makes a show-stopping design statement and is perfect for general circulation areas, receptions and foyers, as well as wet environments such as bathrooms and spas, creating a design focal point. Matching sealants and co-ordinating and contrasting trims are available.

Discover Altro’s full building solution at www.altro.co.uk
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Online and in touch – the digital way ahead

Chris Goggin of Rinnai looks at the way to the future, for installers, specifiers and end-users, with an online and fully digitalised approach to trading in today’s world.

Today’s world is driven by fingertip operation on a computer, Smartphone, tablet – or even a watch. ‘Digitalisation’ has interrupted and reset the way all businesses of all sizes operate.

‘Digitalisation’ is simply the integration of digital technologies into all seconds, minutes and hours of everyday life. It dictates, virtually all communications between installers and their customers – and suppliers. If a business chooses not to embrace the opportunities of digitalisation and remains in a state of denial then it is highly likely to be left behind and fall away from competitors. The evidence is here – the rise and rise of online purchasing has already accounted for major names in retailing going into administration and ceasing to trade. Online buying is now across multiple device formats, along with the streamlining of product or service information available to consumer bases.

The world is now digital. Finding the ways of employing and utilising this new digital space is key in maintaining a competitive edge within your sector of plumbing and heating installation and contracting market.

The leading manufacturing companies are creating online contact points, information and support services that are fully digitalised and accessible on any device. Tailoring this information so that it is personalised to target customers, geographically and demographically, is a strong and advanced method of ensuring complete service offerings, in a streamlined and effective way.

And the benefits? Time and cost efficiency dramatically increases in talking to anyone involved in the supply chain. It gives a platform to engage with manufacturers at any time of day and from any site.

For specifiers and consultants who need reliable products and information, engaging with a fully digitalised manufacturer, with integrated BIM shelf and associated sales support as a core competency, will deliver this without question.

For end users, too, this accessibility leads to peace of mind. A digitalisation strategy is, at its core, aiming to ensure the customer is central to company thinking and long-term goals. Competing in the new wider, and online, industry requires the most advanced, personalised and hassle-free offering to the end user in this manner is extremely important.

Brand knowledge and trust now requires transparency and direct accountability, and so Twitter and other social media platforms, are also a key area for engagement and information flow. Social media enables interaction and mediation with emergent groups (even regular online reviews which can be both good and bad!) while enhancing and protecting a reputation.

For more information on the RINNAI visit www.rinnaiuk.com.
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