Construction Industry- Covid-19 Challenges

With daily announcements about the effects the Covid-19 pandemic is having on the private sector construction industry, we are looking at some of the key issues that are arising.

Our blog on public works contracts focuses on financial relief, procurement and contractual issues, which we also cover here.

Some of the recent topics covered by industry bodies include:

• Major housebuilders including Redrow, Crest Nicholson and MJ Gleeson have furloughed thousands of workers amid the continuing Covid-19 pandemic. 
• BAM Construct has become the latest contractor to furlough its employees, putting 440 staff on to the Coronavirus Job Retention Scheme. 
• The Construction Leadership Council (CLC) has urged the whole sector to help each other by boosting the flow of cash through the sector. 
• The Construction Leadership Council (CLC) has convened a Construction Industry Task Force to provide a focal point for co-ordinating the industry response to Covid19 
• Supply Chain and Business Models Work Stream
• CLC Statement on Payment and Contracts 
• Lobbying efforts are underway to get major infrastructure projects back up and running quickly once the coronavirus lockdown ends.
• The Construction Leadership Council has today written to the Prime Minister seeking additional support for the sector. 

The final item highlights some of the key issues that the construction industry is facing as a result of Covid-19 when the CLC asks Government to:

• Suspend PAYE and CIS tax due to HMRC in April and May for construction and consultancy firms and workers with no financial penalty;
• Defer or cancel Apprenticeship Levy payments for the duration of the crisis;
• Advise all public sector clients, regulated utilities, and firms in the private sector to expedite cash flow throughout the supply chain;
• Provide support for the directors of micro-businesses, who currently fall between the support provided by the Job Retention Scheme and assistance for the self-employed;
• Direct all Government bodies to release all retention monies, which are estimated to total £4.5 billion across the supply chain; and
• Extend the £25k SME business continuity grants scheme to the construction sector.

The Practical Stuff from BuildUK

Industry Representation

• Secretary of State Letter to the UK Construction Sector – 31 March 2020
• Secretary of State Letter to the UK Manufacturing Sector – 8 April 2020
• CLC Letter to the Prime Minister – Collective Action to Sustain the Industry – 1 April 2020
• CLC Letter to the Prime Minister – Support for Construction Sector – 17 March 2020
• CLC Statement on Payments and Contracts – 8 April 2020
• HSE, TUC and CBI Statement – Enforcing Social Distancing – 3 April 2020
• Build UK Statement – Implementing the Site Operating Procedures – 26 March 2020
• Build UK Statement – Keeping Sites Operational – 24 March 2020

Government Guidance

• England – Employees, Employers & Businesses
• Northern Ireland – Support for Businesses
• Scotland – Support for Businesses
• Wales – Support for Businesses

Advice for Businesses

• CITB Support
• CMA – Approach to Business Cooperation in Response to COVID-19
• Contractual Issues
• Coronavirus Business Interruption Loan Scheme
• Coronavirus Job Retention Scheme
• CSCS Card Applications
• CSCS Partner Card Scheme Measures
• Cyber-Crime
• Decontamination in Non-Healthcare Settings
• Essential Worker Authorisation Letter
• Financial Support for Businesses
• HMRC Late Payment Support
• Procurement Policy Note 01/20 – Procuring Goods with Extreme Urgency
• Procurement Policy Note 02/20 – Payment of Suppliers
• Procurement Policy Note 02/20 – Guidance Notes for Construction Contracts
• Shutting Sites Safely
• Site Operating Procedures
• Social Distancing in the Workplace
• Social Distancing in the Workplace – Construction
• Statutory Sick Pay
• Suppliers that are Open
• Suppliers (Builders Merchants) that are Open
• Temporary Homeworking

Information for Workers

• Critical Workers List
• Renters – Suspension of New Evictions and Other Protections
• Self-Employment Income Support Scheme
• Self-Isolation for Households
• Universal Credit

What are the key legal issues facing the industry at this unprecedented time?

How do some of the lawyers see things- here is a brief selection of articles and blogs covering Covid-19 related legal issues:

Norton Rose Fulbright 

•  Is there potential relief available under the contract?
•  Is there a way to bring the contract to an end?
•  What about contracts that are just about to be entered into?
•  Are there any issues to consider outside of the contract?
•  Practical steps to consider in the meantime

Dentons 

1. Keeping your business operational: where to start?
2. Managing the project and issues on site
3. Dispute avoidance: how do businesses protect themselves from loss and disputes?
4. What are your contractual rights?
5. Issues to consider when negotiating new contracts
6. Prioritising the health and wellbeing of staff – practical issues
7. Employment law issues – employer perspective
8. Employment law issues – employee perspective
9. Handling disputes
10. Maintaining your pipeline of work

By the publications team at: Contracts-Direct.com

Legal Notice:

Publisher: Atkins-Shield Ltd: Company No. 11638521
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Note: This publication does not necessarily deal with every important topic nor cover every aspect of the topics with which it deals. It is not designed to provide legal or other advice. The information contained in this document is intended to be for informational purposes and general interest only.

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