Master Builder Magazine: February-March 2021

Master Builder Magazine: February-March 2021

FEBRUARY-MARCH 2021 £4.25

THE MAGAZINE OF THE FEDERATION OF MASTER BUILDERS

MAKING MUSIC Master Builders and Volunteer It Yourself turned a bank into a community music venue

THE RECOVERY POSITION Legal advice on what to do when clients don’t pay

QUOTE UNQUOTE Is it a good idea to charge customers for quotes?

A BUILDER’S LIFE Four FMB Area Board members reveal how they joined the industry

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Contents FEBRUARY/MARCH 2021

Features

25 Act now on reverse charge VAT How to avoid cashflow problems 26 A builder’s life for us

15

Four Area Board members reveal why and how they joined the industry

Industry update

28 Quote unquote

7 Welcome

Is it a viable option to charge for quotes?

The industry is in a strong position to face the challenges ahead

30 Retrofit – the road ahead What the four UK countries are doing to achieve net-zero carbon emissions by 2050 Your FMB

9 News

The latest headlines from industry news

15 FMB turns 80

We will celebrate our anniversary throughout 2021, and to begin the year, we take a look back at how our journey started Spotlight

33 What can I insure?

Take out workplace contents insurance

34 Connections

Book tickets for your local Master Builder Awards ceremony

16 A sound hire

35 Diary dates

Master Builder volunteers in London and Volunteer It Yourself transform a former bank into a community music venue

Sign up for webinars offering expert advice

36 On the agenda

The FMB’s policies and opinions

16

Business support

38 Building contracts How to modify contracts to suit your needs 39 Request client reviews Use your FMB Find a Builder profile to attract clients 40 Member update A list of new and expelled members 43 Creating a multi-trade apprenticeship Find out how FMB members are developing a ‘general builder’ qualification 44 Member news News from around the English regions and devolved nations

18 The recovery position Curtis Broadhead from law firm Keebles LLP advises on the best practice to follow when your clients either won’t pay on time or at all 21 Grow with the flow Construction Coach Maria Coulter talks about preparing your business for change

23 Taking responsibility

Running your own business can be daunting and when it comes to health and safety, the buck stops with the MD

43

Master Builder has been carefully prepared but articles are published without responsibility on the part of the publishers or authors for loss occasioned to any person acting or refraining from action as a result of any view, information or advice included therin. Articles published in Master Builder do not necessarily reflect the opinions of the Federation of Master Builders Ltd nor can the Federation of Master Builders Ltd, the publishers or authors accept any responsibility for any claims made by advertisers.

Editorial Editor Bradford Keen Head of marketing Danika Ferguson

Advertising Advertising manager Paul Gabriel +44 (0)20 7025 2900 [email protected]

Senior designer Gene Cornelius Picture editor Claire Echavarry Publishing director Joanna Marsh

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Welcome BRIAN BERRY A s we battle our way through ongoing coronavirus restrictions it is at least reassuring that the building industry has, to date, been able to continue operating. This

I’m pleased to let you know that the FMB will not be increasing its membership subscription in 2021

policy ahead of the Climate Conference in November this year. Even better would be if the Chancellor announced measures to help create a national retrofit strategy in the March Budget! Let’s wait and see. In the meantime, this edition looks at decarbonisation plans in all four nations of the UK ( see pages 30-31 ). One issue that the Chancellor should be adopting in the Budget is the urgent need to scrap the introduction of reverse charge VAT, which is due to come into effect in March. The FMB has been successful in delaying the proposed introduction on two occasions but if the Chancellor decides to go ahead, Tax Consultant Liz Bridge provides a very helpful reminder for members about how best to prepare for the changes ( see page 25 ). Attracting new talent into our industry is an important contribution of small builders, many of whom employ apprentices. The FMB has long been committed to training and development and has set up a Trailblazer Group chaired by FMB member Annie Summun to develop a new general builder qualification ( see page 43 ). For too long it has been unacceptable that anyone can call themselves a builder, so this proposed qualification goes some way to addressing this issue. It is something we’ll be mentioning as part of National Apprenticeship Week in February. Finally, I want to thank everyone who submitted a nomination for the 2021 Master Builder Awards. The opportunity to celebrate the very best of what you do in our industry could not come at a better time. I hope by the time of our awards the worst effects of the pandemic

time we are better prepared as an industry with FMB guidance for those companies working in other people’s homes and the Construction Leadership Council (CLC) Site Operating Procedures available for the larger companies. These guidance notes and additional information to help construction companies operate are available on the coronavirus pages on the FMB website ( www.fmb.org.uk/coronavirus ) so please take advantage of this advice. Although our industry is fortunate compared with other sectors, I know how challenging the market can be, which is why I’m pleased to let you know that the FMB will not be increasing its membership subscription in 2021. It is important to remember that 2021 is significant for the FMB. This year we will be celebrating our 80 th anniversary. We will commemorate this through a series of events culminating in a parliamentary reception later in the year. Throughout all this time, the FMB has strived to support its members – from the effects of the Second World War to the damaging impact of the current pandemic. The FMB has been a consistent, independent and strong voice championing the needs of small builders. The issues may be different 80 years on, but the fact remains that builders still want to unite to support one another, which is what the FMB is all about. Arguably the biggest issue we face in the years ahead is the need to tackle the impact of climate change and the drive to create a low-carbon built environment. Given that homes contribute 20% of the UK’s total carbon emissions, the FMB has been active in advocating the introduction of a national retrofit strategy to upgrade our existing homes. I’m pleased to report that the CLC has adopted our policy recommendation and we are now calling on the Government to implement the

will be over and that we will be able to meet face to face and celebrate our 80 years of building a better Britain. Until that time please keep safe!

BRIAN BERRY, Chief Executive of the FMB

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News

CONSTRUCTION INDUSTRY NEWS

Figures for the third quarter of 2020 in the BMF’s Builders Merchants Building Index reflect the resilience of the sector, with sales bouncing back to near-normal levels. Sales in Q3 were up 63.2% on Q2, with September 2020 sales delivering a particularly strong performance, increasing by 8.3% compared with September 2019. Big winners were landscaping, timber and joinery, and unsurprisingly, workwear and safetywear value was up by 8% with COVID-19 safety requirements. There were declines in areas including heavy building materials, plumbing, and kitchens and bathrooms, but John Newcomb, BMF CEO, said: “The level of activity over the summer and early autumn has been extremely encouraging… it remains to be seen how consumer confidence holds up going forward. The construction industry should benefit from government initiatives such as the Green Homes Grant… but with lockdown measures continuing we are likely to see more volatility in the coming months.” Merchants resilient as sales return to near- normal levels

Chancellor’s £12mfor planning ‘woefully inadequate’ says RTPI

T he Royal Town Planning £12 million to take forward its planning reform agenda – 10% of what the RTPI believes is needed. RTPI Chief Executive Victoria Hills said: “The £12 million announced by the Chancellor is woefully inadequate Institute (RTPI) has expressed disappointment that the Government has allocated just and fails to recognise the vital role the UK planning system plays in the economic recovery post-COVID. “While we understand the impact the pandemic has had on the country’s public finances, the Government will not be able to achieve its ambitions to radically overhaul the planning system without adequate investment in local authorities.”

The RTPI welcomed the chancellor’s announcement of a £7.1 billion National Home Building Fund, but pointed out that local authority planning departments have seen a 42% reduction in funding over the past decade, which has had implications not just for efficiency or process. In its formal response to the Comprehensive Spending Review (CSR), the RTPI set out the vital role planning plays in facilitating economic growth, providing affordable housing, tackling climate change, ensuring access to green space and improving wellbeing. It is calling for £500 million over the next four years to enable planning departments to deliver outcomes efficiently, effectively and equitably.

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NEWS

Two-thirds ‘not ready’ for IR35 tax reform

Government announces 10 point plan for a ‘green industrial revolution’

With confirmation from Parliament that the IR35 regulations in the private sector will arrive in April 2021, a survey by construction recruitment company Randstad says that around 70% of medium and large construction businesses are still not fully prepared for forthcoming changes. The IR35 rules govern the tax status of an individual working as a contractor (or freelancer) and whether, for taxation purposes, they ought to be deemed an employee on the payroll. For the public sector, IR35 is almost old news, with changes implemented back in 2017, but turn to IR35 in the private sector and there’s a wealth of unanswered questions and confusion. Originally set to come into effect from April 2020, the implementation of IR35 legislation was postponed until 6 April 2021, owing to the coronavirus pandemic. The Randstad survey also indicated that 26% of companies surveyed had no awareness of the rule changes or their potential business impact. For more information, visit tinyurl. com/IR35-Government-website

P rime Minister Boris Johnson has announced a 10 point plan for a ‘green industrial revolution’. The plan will see the Government invest £12 billion over the next 10 years in support of its net zero carbon by 2050 target. It expects the private sector to invest three times that sum, creating up to 250,000 new jobs. Amongst its objectives the Government expects to accelerate the shift to zero emission vehicles, build greener buildings and introduce more carbon capture, usage and storage. However, the FMB has joined with others in the construction industry in calling for the Government to go further. While welcoming news about an extension of the Green Homes Grant scheme for another year, FMB

Chief Executive Brian Berry suggested the green revolution “needs to be more ambitious about the built environment if the Government is serious about creating a low carbon economy”. Berry said that with existing homes contributing 20% of all carbon emissions and consuming 35% of energy demand, “a long term retrofit strategy is needed over the next two decades to make all our existing homes more energy efficient. Such a strategy has the potential to create hundreds of thousands of new jobs and save the NHS as much as £2 billion because of the cost of people living in poor housing conditions.” (This month’s Master Builder includes a feature on retrofit strategy - see page 30-31 .)

Government promotes Future Homes Standard but gas boilers are reprieved

the emissions overheating the climate.” But the new version of the statement includes the line: “Homes built to Future Homes Standard will be ‘zero-carbon ready’ and have 70-80% lower carbon emissions than those built to current standards”, without giving a target date for implementation of the policy. A Downing Street spokesperson admitted to a mix-up,

Plans to ban gas boilers from new homes by 2023 have been withdrawn. The plan first appeared on the 10 Downing Street website late last year attached to Boris Johnson’s climate plan, but the date was later removed. The original statement announced the goal: “2023 – Implement a Future Homes Standard for new homes,

with low carbon heating and world-leading levels of energy efficiency – that means no room for gas central heating, which is a major contributor to

saying “We’ve consulted on introducing this by 2025 and will set out further details in due course.”

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KNUTSFORD, CHESHIRE

CHELSEA, LONDON

NEWS

NEWS IN NUMBERS

£7.1bn Size of the National Home Building Fund announced in the Government’s Spending Review.

Government seeking to ’shine a light’ on apprenticeships

margins and significant sensitivity to economic downturns made it difficult for companies to commit to apprenticeships. However, it highlights the good history of the sector and apprenticeships, with over two thirds (68%) of FMB members stating they are either currently training an apprentice or have done so in the past. The FMB survey also shows the benefit of accommodating apprentices with 40% staying at the company that trained them for at least three years. Government >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52

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