What are Reinstatement Cost Assessments and how are they conducted?

What are Reinstatement Cost Assessments and how are they conducted?

 

As of 1st June 2016, all business and commercial valuations will be serviced under the trading name of Eddisons Taylors.

Regardless of whether you own a single property or a wide-ranging portfolio, ensuring you have the correct insurance cover for buildings and contents is essential. It is not simply a case of being insured; it often transpires that property and contents are either under-insured – leaving you highly exposed to potential costs in the event of a claim – or over-insured leading to unnecessarily high premium payments.

This is where reinstatement cost assessments (RCA) come in.

Reinstatement Cost Assessment (RCA) is the basis adopted by the Royal Institution of Chartered Surveyors (RICS) for undertaking an appraisal of property, and plant and machinery/contents for insurance purposes. The term reinstatement indicates to repair, reconstruct or renew assets to a condition equal to but not better than when new. This assessment is all-encompassing and can often include inspection and reporting on a wide range of properties of differing size, type and use incorporating complex structures and installations.

RICS recommends that full RCAs are carried out every three years although updated RCAs should be undertaken whenever there are significant changes to the buildings, or investment/downsizing in the plant and machinery/contents.

In undertaking the reinstatement cost assessments of buildings and/or contents for insurance purposes, all buildings are visited for assessment by a qualified surveyor, and assessments undertaken on a building by building basis. Building schedules and schedules of main plant and machinery/contents, along with grouped figures for general contents, are undertaken on site. Office based investigations are undertaken with research through BCIS published data, machinery manufacturers and agents, internet research and internal databases. Reinstatement costs are calculated to rebuild the property, with costs of demolition, professional fees, any statutory authority fees and the relevance of current statute which could impact on the reinstatement cost assessment itself.

The assessments being undertaken on a building by building basis allow for broker analysis of the values at risk and estimated maximum losses, which should assist in their insurer negotiations.

Challenges can often arise in the area of specialist buildings. Surveyors will likely be accustomed in assessing traditional buildings such as factories, office blocks or educational establishments though an experience of valuing, assessing and appraising listed buildings or specialist structures will often be required. In respect of educational buildings – both private and public – this is an area in which we have particular widespread expertise; every year we undertake insurance valuations which often comprise class rooms, laboratories, conference space, lecture theatres and canteens. In some cases where a client may own unique buildings or structures, the surveyor may be reliant on co-operation from industry experts in deciding on rebuild costs for these type of structures; drawing on their relevant expertise and experience to advise.

It is critical that reinstatement cost assessments provide the full cost of demolition and rebuilding, together with any other allowances required by the lease terms, so the property owner or manager can arrange the appropriate level of insurance cover. Failure to do so could result in a claim for negligence.

In the event that the buildings or plant and machinery/contents are under-insured, the insurance provider may invoke the Condition of Average Clause where the total claim is reduced proportionally to the value of under-insurance. Clearly, this could have devastating effects, with the policy holder liable for the shortfall in the payout.

Should you require expert and independent advice on buildings and contents insurance including reinstatement cost assessments, contact our insurance team at Eddisons. We have undertaken RCA’s on wide and varied portfolios across a range of sectors covering private, public and education.

Eddisons also act for the majority of major banks in undertaking valuations for both lending and insurance purposes. We typically provide reinstatement values for hundreds of buildings/contents every year.

The assessments being undertaken on a building by building basis allow for broker analysis of the values at risk and estimated maximum losses, which should assist in their insurer negotiations.

 

Written by: David Cran on Thursday 18/02/2016

 

How Planned Preventative Maintenance Programmes (PPMPs) can help you better manage your property

How Planned Preventative Maintenance Programmes (PPMPs) can help you better manage your property

Property managers, landlords and business owner-occupiers face an ongoing, and often unplanned list of maintenance of their buildings and property portfolios. Unplanned expenditure introduces additional risk, but by taking a few active steps, the process can be controlled more effectively to make managing property more predictable. This article outlines what Planned Preventative Maintenance Programmes (PPMPs) are and how they can be used save time and money.

What are PPMPs?

Planned Preventative Maintenance Programmes (PPMPs) are a common-sense and cost-prevention measure designed to get to the causes of property problems before they arise. They work by identifying the current and future maintenance needs of a property, to ensure it can be effectively managed in a gradual way – in a similar way to a car service or the old adage “a stitch in time, saves nine”.

Benefits of PPMPs

Planned preventative maintenance programmes are effective for property managers, as they help to understand the financial implications of maintenance activities for a building, or property portfolio. There are other benefits to with Planned preventative maintenance programmes, which include:

  • Identifying a suitable maintenance strategy. Many planned maintenance polices have evolved over the years and often do not reflect the occupier’s business or the current use of the buildings
  • Setting realistic budgets so that maintenance activities can be fully implemented without comprising on quality
  • Offering opportunity to smooth financial cost over a known period
  • Implementing an Asset Management System and keeping it up to date with reliable information
  • Monitoring maintenance activities to ensure best value and quality

Domestic landlords have a legal duty, under the Landlord and Tenant Act 1985, to ensure that the residential properties they rent out are habitable and safe. Specifically, the Act requires that the landlord is responsible for the water, electricity and gas supply to a property (and ensure that any gas fittings are checked annually by a registered CORGI gas engineer); that drains and plumbing function effectively; that central heating and hot water systems work correctly; that the electrical sockets etc in the property are safe; that the roof is in good order; the guttering, drains and exterior pipes are free from debris; and that the exterior walls, windows and doors are sound.

For commercial landlords, the onus of responsibility is on the health and safety of your tenants – the emphasis is on such issues as the safety of any electrical appliances on the premises, whether there is asbestos there (and how to deal with maintenance and repair issues safety in light of this), and ensuring that any gas supply entering the property is safe. Other duties of care include the general maintenance and upkeep of the property to ensure that it is ‘fit to lease’. The details of the lease you hold with your tenants will specify exactly what is your responsibility and what is theirs, so when you’re having it drafted, make sure you specify precisely what you are prepared to undertake – it may be that you do not wish to deal with fire safety or fixtures & fittings, so make it clear at the outset.

It all sounds fairly straightforward. However, if you have a property portfolio of more than one or two properties, regular maintenance can become an issue that’s difficult to deal with. This is where a PPMP can be of benefit. A thoughtfully-designed and -implemented PPMP will take the headache out of regular maintenance tasks and free up your valuable time.

It clearly makes sense, as some politicians tell us, to fix the roof when the sun shines, and this is a good maxim when considering a maintenance schedule. There are a number of apps available which, if you have a good network of reliable tradespeople, are organised and have the time to deal with such things, may be of benefit. However, for the majority of both residential and commercial property owners this simply isn’t feasible.

The Eddisons team can support you and has specialist experience in scheduling routine maintenance programmes and have professionally-qualified chartered surveyors with experience in all manner of frequently encountered issues – from asbestos removal to water leaks and more, on hand, 24 hours a day. This means that not only can you rely on them plan and deal efficiently with your PPMP, if the unforeseen does occur, your property will be safeguarded and repaired without delay, saving you time, hassle and money.

 

Written by: Paul Gagan on Thursday 14/03/2019

Top tips for commercial property occupiers on controlling costs

Top tips for commercial property occupiers on controlling costs

In business, as in life, it’s important to control your outgoings. Minimising costs can sometimes make the difference between a negative or a positive bottom line – it really is that important. We take a look at how you can control costs if you’re the occupier of a commercial property.

Rent

After staff costs, rent will probably be your biggest outlay. Most experts agree that rent will amount to around 60% of your occupancy costs, so it’s worth taking the time to select exactly the right commercial property for your needs both now and in the medium-to-long-term future – few businesses can cope financially with a move after only a short time in occupancy. It makes sense, therefore, to try to negotiate the rent down as much as possible before signing the lease. If you can persuade your landlord to give you a rent free period, so much the better. Another factor to consider is whether your landlord is charging you VAT on your rent. If you can negotiate for this to be excluded, you’ll make a substantial saving – VAT is currently 20%. If you do have to pay this additional expense ask your accountant about how much you can recover.

Service charge

Service charges can eat into a budget and fluctuate unpredictably, making any attempt at cost control difficult. It is imperative that you check the lease before you sign for clauses which may be ambiguous as to whether an item is a service or a repair and maintenance issue. Try not to have items of capital expenditure included in your lease and check what’s included and what isn’t so you’re not faced with an unexpected outgoing when you need it least.

Efficiency

Being energy efficient has two major benefits. Not only will you be doing your bit to save the planet, but cutting down on your energy usage will also save you money. Up to half your business’ energy costs will go on heating and/or cooling so it is a massive outlay that can be reduced with a few simple measures.

Check the Energy Performance Certificate your landlord provides to find out how energy efficient the premises is before you move in – it should give you a good indication of how much you have to budget for bills. An efficient programme of repairs and maintenance will do wonders to cut your energy bills, but you can also reduce them further by controlling the heating/air conditioning in your building to ensure a steady, comfortable temperature for staff, having your boiler or air con system regularly serviced, encouraging employees to turn lights off when they’re not needed (or fitting occupancy sensors), and making sure that the building is as well insulated as possible to reduce heat loss. Also ask your landlord about changing to an energy provider with a lower tariff, if possible.

Simple steps like these can effectively cut costs on commercial properties and help improve your bottom line. If you’d like more information about any aspect of leasing a commercial property get in touch. The Eddisons team can offer you up-to-date and relevant advice on renting a commercial property whether you’re new to business or a seasoned professional.

Monday 11/03/2019

Glossary of common auction terms

In this article you’ll find a glossary of some commonly used terms when buying or selling assets at auction, along with their definitions.

AS IS/ AS FOUND/ AS SEEN/ ALL FAULTS / AF

This is a declaration that the asset will be sold as it appears, including any faults or imperfections

BULK LOTS

These are auction lots that contain multiple items. This may be where there are a number of similar items, that have been collated into a single lot. Always fully check the detail regarding the lot title and description before you bid, as in some cases your bid price will be multiplied by the number of items in the lot.

BUYER’S PREMIUM

The buyer’s premium refers to the additional charge that is paid by the winning bidder. The buyer’s premium is charged by the auctioneer to cover administrative expenses. The buyer’s premium goes directly to the auction house and not to the seller. VAT/Sales Tax is usually included and is broken down in the invoice.

CONDITION

This is a written description of an asset’s condition and is usually provided in the lot description. If you are unsure about the description, or have any questions, simply use the ‘Ask a question’ button on the lot listing page.

CURRENT BID

The current bid is the leading online bid. To be the highest bidder, you will need to bid an amount higher than this.

EXTENSION

Sometimes you will see that an end time on a lot may be extended by upto 10 minutes. This is happening because whenever there is a new bid, the countdown is extended before the final hammer – in a similar way to a real auction.

MAX BID

This is the maximum amount you would be happy to pay for a lot. You can set the maximum amount you wish to pay, and then we bid on your behalf. You don’t even have to watch the auction online. Bidding would only be as much as you would need at a live auction.

NEGOTIATED SALE (“PRIVATE TREATY SALE”)

 

OPENING PRICE

The opening price is the amount that the bidding will start for the sale of the lot. You will need to bid on or above the opening price to take part.

RESERVE

This is the lowest price that the seller has agreed the lot can be sold for. This protects the seller from the lot being sold below its value.

TENDER SALE

A Sale by Tender is a type of auction where an asset will be put up for sale with a deadline for bids. Interested parties have until that date to submit their best offer, without having seen anyone else’s bidding activity.

TIMED AUCTION

Timed auctions have an auctioneer who sets the time that the lots end, and the size of the increments – there’s just a bidding window and whoever bids highest wins (as long as the reserve’s met). You’ll know it’s a timed auction as the end time will be displaced on the lot page.

TIMED BID

A bid made during a timed auction. You can place a timed bid between the start and end of a timed auction. If you are the highest bidder at the end of the auction (and have met the reserve price), you will win the lot.

TRADING ASSET

A trading asset is where we are selling a business or operation that is still effectively trading. Examples may be a care home, where we may be selling the business itself along with the property that the business is operating in. These may be sold separately and end up with an entity that owns the care home business (i.e. the clients and contracts), and a different separate entity that owns the property.

Eddisons celebrate successful completions across the North

Eddisons celebrate successful completions across the North

Academies in Yorkshire, Lincolnshire and the North East were celebrating this week after the Building and Project Consultancy (B&PC) team at Eddisons achieved practical completion on a series of building improvement projects.

Teams from our Newcastle and Leeds offices marked the practical completion on refurbishment work for academies in Gateshead, Lincoln and York with a total project value in excess of £2.5m. The instructions included a £750k curtain walling replacement scheme to an academy school in Gateshead, along with a £900k flat roof refurbishment and asbestos cement sheet replacement to the sports hall at Sir Robert Pattinson academy in Lincoln.

The three projects were based on successful applications to the Education & Skills Funding Agency (ESFA) for capital funding via the Condition Improvement Funding (CIF) scheme. These refurbishments conclude a successful 2018 where the team successfully delivered over £15m in capital funding projects for academies across the UK.

Adam Finch, Associate Director in the Building and Project Consultancy team, said: “The CIF scheme mainly involves improving the condition and efficiency of roofs, windows, boilers or with safeguarding projects for academies. With this project, we incorporated some of the branding and house colours into the design, and the building has been completely transformed.

“Despite having to overcome unforeseen asbestos issues the (Gateshead) academy was still completed ahead of programme and within budget. It’s satisfying to hear that the client was delighted with the final result.”

Ian Harrington, National Head of B&PC added: “What these projects highlight is the combination of an experienced team, to overcome challenging complex issues, coupled with an innovative approach to create more inspiring learning spaces.”

“This year we’re looking forward to submitting a record number of capital funding applications, sparked by a high number of instructions from existing clients and enquiries from other local academies that have been recommended.”

On the projects above Eddisons were involved from inception through to completion; undertaking the role of Designer, Contract Administrator, Cost Consultant and Principal Designer.

For advice on improving the efficiency and condition of your property, or to see how we have helped other academies maximising their building potential, please call our Building and Project Consultancy team on 0113 209 1039 for free no obligation advice.

Written by: Adam Finch on Thursday 22/11/2018

 

A minute with Ian Harrington – Director at Eddisons

A minute with Ian Harrington – Director at Eddisons

 

The Building & Projects Consultancy team from leading surveying firm Eddisons will be exhibiting at The Academies Show 2018. In advance of next week’s show, Ian Harrington (National Head – Building & Project Consultancy at Eddisons) caught up with MyAcademy’s James Grieves to discuss the work the team do with Academies to help secure funding for the development of school building projects.

What are some of the common property challenges and considerations faced by converter academies and established MATs?

I think that one of the most common challenges is understanding their portfolio and the issues they are facing with that portfolio and how they can be translated into funding streams to be delivered effectively.

What tips do you have to help them address/overcome these?

Firstly, i’d suggest getting a comprehensive assessment of their portfolio to fully understand the specific issues they face, so they can plan a strategic path forward. Given that many schools may not have that expertise in house, that’s where we will support them, for example by undertaking conditional surveys to assist in their understanding.

How can schools maximise the performance and effectiveness of their property assets?

There are many ways to improve a school’s performance and effectiveness, from installing more energy efficient lighting and heating systems, to improving their teaching, catering or sports facilities. Schools need to see their properties as an asset that enhances the learning environment and student take-up.

Furthermore, under the new Condition Improvement Fund (CIF) guidelines the Education and Skills Funding Agency (ESFA) are increasingly asking to see financial contribution/commitment from academies and academies need to embrace that.

What funding options are available and how can academies increase their chances of success when seeking funding applications?

The obvious source of funding for academies under the 3000-student threshold is CIF funding. For a school to maximise their chances of success quality bid documents need to be prepared supported by up to date condition surveys. Schools also must show financial commitment to the project either by means of either direct funding, Salix funding or CIF loans. The ESFA are increasingly looking for academies to show financial commitment and to share the financial burden.

How do you help schools create inspiring learning spaces? Do you have any examples you could share?

We listen to client’s and their ambitions for the school, and will then offer potential solutions based on our experience and wider knowledge. The primary focus under the CIF process is to ensure building fabric and form are in a good repaired condition and compliant status.

While this mainly relates to roofs, windows, boilers, safeguarding, Life and Fire safety, we will incorporate these into a more creative environment through effective design or the use of innovative materials. For one school we incorporated their school colours and branding into our designs, to make the space more attractive and inspiring for pupils and staff.

What help can Eddisons offer when it comes to the maintenance of school properties?

We help schools better manage their property maintenance by looking at it alongside the strategic business needs of the school and their long-term objectives. We then produce a planned maintenance programme for them which supports prudent maintenance, enhances bid applications and acts as their roadmap to success.

How does Eddisons differ from other firms offering CIF bids?

Our clients have told us that they appreciate how engaged we are from the outset, and that we maintain this communication throughout the whole process. It’s about partnership and working together. I think what sets us apart is that we take the time to fully understand what they want to achieve and then make sure we deliver that.

What are the ways you can help with the process of applying CIF Bids?

We can help with the process by applying our knowledge, surveying skills and professional abilities however not to forget that it is schools that know their environment and business and by integration of the two and forming a partnership is how we increase the workability and the chance of success.

Many school governors and boards do not have the expertise when it comes to property development and planning, what are the ways Eddisons can assist them with the long-term planning for the future?

We review their portfolio as a whole and again in a partnership with the school/ MAT develop a strategic plan for the future rather than just looking at individual projects we look at the whole picture.

Written by: Ian Harrington on Tuesday 13/11/2018

Construction Health and Safety Updates

Construction Health and Safety Updates

 

Health and safety has always been at the forefront of the property and construction industry, but in light of the recent site safety updates, new sentencing guidelines and fines linked to turnover, we thought it was time to take a look at how the sector has changed.

The health and safety picture in the UK

Much has been done in recent years to improve health and safety, with the UK now having the second lowest rate of fatal incidents in Europe. However, there are still pockets of bad practice. In 2017/18, there were 38 fatal injuries in construction, more than any other UK industry.

Given the high levels of fatalities in the construction industry, the Health and Safety Executive (HSE) has been taking a hard line on firms of every size, with increased sentencing powers and fines linked to turnover now being imposed.

Increased sentencing powers

Sentencing guidelines for health and safety corporate manslaughter offences were revised in February 2016. The new penalties increased the level of risk and culpability for many offences and introduced fines that are potentially unlimited. Until that point, most offences under the Health and Safety Act 2008 carried a maximum fine of £20,000.

There has also been an increase in the number of custodial sentences that are being handed out to directors and other company officers who neglect their health and safety responsibilities. The majority of convictions under the Corporate Manslaughter and Corporate Homicide Act 2007 have been against directors and senior offices of SMEs. That’s because it’s easier to prove responsibility for the implementation of safe working practices in organisations where there’s a straightforward management structure.

Fines have been on the rise

Since the new sentencing guidelines were introduced, the number of large fines handed out for cases not involving manslaughter has increased significantly. In 2014 and 2015, there were 0 and 3 fines imposed over £1m respectively. However, in the first year after the new guidelines were introduced, there were 19 fines of £1m or more.

The highest fine awarded to date was the £5m handed to Merlin Attractions Operations Ltd following The Smiler roller-coaster crash at Alton Towers theme park. There were also fines of £4m and £2.6m for Network Rail and Balfour Beatty respectively.

There has also been a dramatic increase in the number of fines being imposed where there’s been no actual harm but a heightened risk. One example of a so-called ‘near miss’ case is the construction firm that was fined £640,000 when carbon monoxide escaped into a block of flats. Although the leak was detected before any of the residents could be affected, the potential for serious ill-health was reflected by the fine.

Fines linked to turnover

For the first time, corporate fines for health and safety offences are being linked to the defendant’s turnover. The sentencing guidelines have introduced categories of organisation based on their turnover and the upper thresholds for fines.

Health and safety fines have been categorised as follows:

  • Micro organisations – turnover less than £2m; maximum fine £450,000
  • Small organisations – turnover of £2m-£10m; maximum fine £1.6m
  • Medium organisations – turnover of £10,-£50m; maximum fine £4m
  • Large organisations – turnover of £50m+; maximum fine £10m

However, for corporate manslaughter cases, the upper thresholds for fines are much higher.

Keeping your worksite safe

The rules and regulations are there to ensure the safety and well-being of everyone who deals with commercial property, in whatever respect. If you need guidance or advice on any aspect of health and safety, please get in touch with a member of our team.

Written by: Richard Steedman on Monday 06/08/2018

 

Rare chocolate headlines Eddisons Auction

Rare chocolate headlines Eddisons Auction

One of the tins of chocolate that triggered a right Royal rumpus involving Queen Victoria and all three of the country’s leading chocolate makers featured in our Antiques & Collectors Auction.

During 1899 the Queen decided that to cheer up her troops engaged in the Boer War (which was going rather badly at the time) she would send them all a New Year gift. Cadburys, who held the Royal Warrant as suppliers of cocoa and chocolate products, were asked to produce the blocks of chocolate for the specially designed tins.

Simple as it might seem, the order posed serious ethical difficulties for the Cadburys: They were Quakers, as were their rival chocolate manufacturers the Frys and the Rowntrees. They were also pacifists, they were opposed to the war and they had no desire to put themselves in a situation in which they could be accused of profiting from the fighting. On the other hand neither did they wish to go head-to-head with the Queen Victoria and the Imperial Establishment in the middle of a conflict in which the lives of Empire soldiers were being lost.

To resolve their dilemma Richard and George Cadbury formed a temporary alliance with Joseph Fry and Joseph Rowntree: The three firms agreed to work together to fulfil the order. They would donate the chocolate free of charge and there would be no branding on either the chocolate or the tins.

Queen Victoria was not amused by all this. She wanted her soldiers and sailors to know that she was sending them the best British chocolate. In the face of the Royal ire, the firms took the sensible course of action. They caved in. Sort of. The tins remained unbranded but some of the chocolate and some of the interior wrapping sometimes did bear a company name.

The Boer War chocolate gift tin that featured in our Antiques, Collectables and Homewares Auction had been entered as a result of the international media coverage of the inclusion in a previous auction that featured a World War 1 hero’s 1914 Colonies Chocolate Gift Tin that still contained nine of the original chocolate bars.

‘Hundred and three year old chocolate is not so special’ responded a lady from London. ‘I’ve got a Boer War tin and all of the 118-year old chocolate is still inside!’

The chocolate, originally a single block, was somewhat broken up but it was all there. Interestingly, although it didn’t look quite as attractive at it once did, it managed to retain a trace of chocolate aroma.

It is by the way Cadbury’s chocolate. Although neither the tin nor the chocolate are branded, Cadburys, Frys and Rowntrees had their tins made by different firms and there were slight differences that enable them to be identified.

The gift tins went down a storm with the soldiers fighting the war in South Africa. It was the first time that any of them had received a present from the Queen. They were treasured. Many sent their tins home for safekeeping. Bids of as much as £20 were rejected by soldiers earning a shilling a day. Back home a swindler was jailed for six weeks after selling hundreds of tickets in a fake raffle that claimed to have one of the tins as a prize.

The result of all this is that Queen Victoria’s 1900 Chocolate Gift Tin is not quite as rare as you might imagine, although it is pretty unusual to have all the contents intact. The First World War Colonies Chocolate tin and contents we auctioned sold for £3,000, but it was part of a larger lot that included a Distinguished Conduct Medal and other memorabilia. Examples of this even older treasure usually sell for £50 – £300, depending on the condition of the tin and whether or not the chocolate is still inside.

If you have any antiques or collectables, and would like to find out how much they could achieve at auction, please contact us on 01724 334411.

What are CDM regulations and what happens when they are breached?

What are CDM regulations and what happens when they are breached?

The Construction (Design & Management) Regulations, or CDM 2015, are designed to cover health, safety and welfare in the construction industry, and apply to all construction projects from beginning to end.

Projects can include, but are not limited to, demolition works, refurbishment, new builds, extensions, conversions, and repair and maintenance, and require specific notifications and actions to take place.

What is expected under CDM regulations?

CDM regulations require that projects are carefully planned with health and safety in mind from the earliest stage. Certain participants in each project become duty-holders, and take responsibility for the CDM requirements.

The regulations are intended to help those involved:

  • Carefully plan projects so any risk to health and safety is minimised
  • Co-ordinate with others involved in the project, and co-operate accordingly
  • Ensure a suitably skilled workforce is employed at each stage
  • Assess and fully understand the risks
  • Communicate these risks to others on the project, as well as the control measures that are to be put in place

Who are duty-holders under CDM and what are their main obligations?

Clients

CDM regulations changed in 2015, when greater responsibility was placed on the client. Part of a client’s duty under the regulations is to notify the Health and Safety Executive (HSE) that construction work is taking place, and to ensure the management of health and safety on-site.

Clients can be divided into commercial and domestic, but domestic clients don’t generally take on these duties. They naturally pass to other duty-holders, such as the contractor, principal contractor, or designer.

Designer

The Health and Safety Executive (HSE) define a designer as, “an organisation or individual whose business involves preparing or modifying designs for construction projects, or arranging for, or instructing, others to do this.”

Designers can include architects, surveyors, engineers, and interior designers, and their duties include eliminating the risk to the health and safety for anyone involved in the project, and effectively managing any risks that cannot be eliminated.

Principal contractor

Where more than one contractor is involved in a project, a principal contractor will be appointed to control health and safety during construction. Their duties include formulating a plan for the construction phase, liaising with other duty-holders to manage the risks, and consulting with workers regarding their health and safety.

Contractor

A contractor is any person or business employing construction workers, or managing construction work. Under CDM regulations, contractors must make sure the workers they employ or hire have the knowledge, skills and training needed to undertake the tasks assigned, and supervise them during the construction phase.

Worker

Workers are employed or hired by the contractor or principal contractor, and can include plumbers, electricians, labourers, scaffolders, painters and decorators. Their duties under CDM include following the rules and procedures laid down, co-operating with other duty-holders, and reporting any risks as they arise.

What happens if CDM regulations are breached?

Failing to fulfil the requirements of CDM regulations by any duty-holder could result in significant fines being handed down, and a range of legal actions including criminal and contractual litigation.

The Health and Safety Executive is a national, independent body tasked with reducing instances of work-related death and injury, and has the power to prosecute duty-holders for breach of these regulations

They will investigate health and safety misdemeanours or any other issues throughout a construction project to ensure the welfare of those involved, as well as the health and safety of members of the public.

Potential criminal procedures

If a fatal accident occurs during a project, the police will investigate the circumstances of the death, with HSE providing specialist support. All duty-holders will face intense scrutiny, with corporate manslaughter charges being a possible outcome. In these cases company directors could face heavy fines, and potential imprisonment.

If substantial fines are imposed for breach of CDM regulations, it can result in insolvency for the businesses concerned. When combined with the possibility of legal action also being taken, it is clear that adhering to the Construction (Design & Management) Regulations is a crucial part of any building or construction project.

For more information and professional guidance on your obligations under CDM, call one of the Building and Project consultancy team at Eddisons. We can advise on the requirements of CDM, how they affect your role within a project, and how to ensure compliance as a duty-holder.

Written by: Adam Finch on Tuesday 03/07/2018

 

Asset Buying Guide

Asset Buying Guide

The Eddisons Machinery and Business Assets team are trusted by clients to sell all manner of corporate assets through our auctions and sales held across the UK.

Before purchasing assets at auction, here’s what you need to know:

Goods Collection Service

For people purchasing small items from our online auctions, we have established a relationship with a courier company who are able to collect items on your behalf, package them and deliver them to the address of your choice saving you a journey to collect a few small items.

This service is available for items which are a variety of sizes and the items can be delivered throughout the world if required.

If you wish to take advantage of this service, you will need to contact Transnet and agree a price for delivery. Once you have made payment to us for your goods, we will issue Transnet with a collection note and arrange a collection date for them to collect your items.

To enquire about prices and to arrange collection and delivery of your items, please contact Transnet Couriers directly on 0844 543 4433 or email info@transnetservices.co.uk ensuring that you quote Eddisons.

Payment Terms

For details of Payment Terms for items purchased at our Machinery and Business Assets Sales, please click here.

Terms and Conditions for Buying Assets

The terms and conditions for purchasing lots from a Machinery and Business Assets sale can be viewed by clicking here.