Construction Industry Federation Update on Developments in the

Construction Industry Federation Update on Developments in the Industry

Welcome & Opening Address

State of the Industry & Prospects for 2015/2016 Tom Parlon Director General CIF

Questions & Answers

Industrial Relations Update Joe O’Brien Director Southern Region CIF

Industrial Relations and Employment Services The Workplace Relations Bill New Legislation to Replace REAs

Workplace Relations Bill 2014 WHAT IS IT? A Bill to streamline the existing framework for the resolution of employment rights and industrial relations complaints and disputes. OBJECTIVE - To deliver a world-class workplace relations service which is user-friendly, independent, effective, impartial and cost effective for both employers and employees. - To resolve workplace related disputes as quickly and as inexpensively as possible.

Workplace Relations Bill 2014 ¢ The Bill provides for: Establishment of the Workplace Relations Commission (WRC) l Enhanced enforcement procedures l Compliance notices l Fixed payment notices l

Workplace Relations Bill 2014 ¢ A new structure will see the existing five state bodies replaced by two. The five bodies are: • The Labour Relations Commission • The Rights Commissioner Service • The Labour Court • The Employment Appeals Tribunal • The Equality Tribunal

Workplace Relations Bill 2014 The five state bodies will be replaced by: 1. The Workplace Relations Commission will deal with all cases in the first instance 2. The Labour Court will deal with all cases on appeal

Workplace Relations Bill 2014 Function of WRC: • Mediation on a voluntary basis. • Employees with multiple complaints will have all complaints dealt with in one place at the same time • One website will replace five and this website for use by employers and employees alike. • NERA will come under the auspices of the WRC.

The Workplace Relations Commission Three services for resolving disputes: ¢ A Case Resolution Officer (optional). ¢ A Mediator (optional). ¢ Adjudication (mandatory for employment law complaints) 12

Case Resolution Officers will provide an informal, telephone-based advisory service to assist employers and employees to resolve a dispute by means of settlement, rather than through formal adjudication. This scheme has been piloted and implemented since May 2012 through the “Early Resolution Service”. 13

Mediation Officer This will be a face-to-face mediation service staffed by Mediation Officers at the WRC who will facilitate parties to reach a settlement agreement. 14

Adjudication Officers will hear about alleged breaches of employment law and will give a decision on the matter. Complaints will be heard in private but decisions will, in general, be published. Existing Rights Commissioners and Equality Officers will be transferred to the role of Adjudication Officers. 15

Workplace Relations Bill 2014 ¢ Function of Labour Court l A court of last resort l Will deal with cases on appeal from WRC l Labour Court hearings will generally be held in public

Workplace Relations Bill 2014 ¢ Compliance Notice l May be served on an employer by an inspector where the inspector is satisfied that the employer has contravened certain employment protective legislation. l An employer may be directed to do or to refrain from doing certain acts.

Workplace Relations Bill 2014 ¢ Fixed Payment Notice l Where an inspector has “reasonable grounds” for believing that an employer has committed a relevant offence, a fixed payment notice may be issued directing a payment not exceeding € 2, 000.

Industrial Relations (Amendment) Bill 2014 ¢ Legislation to provide a replacement for REAs. ¢ The Bill provides a mechanism for employers and/or unions to apply to the Labour Court to initiate a review of pay/pensions/sick pay and to make a recommendation to the Minister for the making of an Order.

Industrial Relations (Amendment) Bill 2014 ¢ The Bill provides for the following: Rates of pay l Pensions and sick pay l Dispute settling provisions l Exemptions from pay l Compliance and enforcement provisions l

Industrial Relations (Amendment) Bill 2014 ¢ If issued, the Order will be legally binding on all employers and workers. ¢ Essential that the views of the industry are communicated to government to ensure we can influence the new legislation.

Industrial Relations & Employment Services ¢ Evidence of increasing union activity ¢ CIF can represent you at: third party hearings l Negotiations locally and nationally with trade union l Government l

Questions & Answers

Tendering & Contracting Update Martin Lang CIF Director Main Contracting

Tendering & Contracting Update March 2015 1. Public Sector Contracts Reform 2. Construction Contracts Act 3. New EU Directives

Public Sector Contracts Reform http: //cif. ie/images/pdfs/CIFSubmissi ontothe. GCCCreview. pdf http: //constructionprocurement. gov. ie/wpcontent/uploads/Report-on-the-Reviewof-the-Performance-of-the-Public-Works -Contract. pdf

Public Sector Contracts Reform contd. ¢ Interim Recommendations • Make the Bill of Quantities the primary reference document for the pricing of public works tenders for projects designed by the contracting authority • Introduce a separate tender and subcontract for specialist works contracts. • Require all projects with a value in excess of € 2 m to be awarded on the basis of MEAT with a significant weighting for quality. • Overhaul the dispute resolution procedures for all public works contracts.

Public Sector Contracts Reform contd. ¢ Medium Term Strategy • Risk Management • Encouraging co-operative behaviour • Introduction of performance evaluation • Alternative forms of contract

Construction Contracts Act http: //www. irishstatutebook. ie/pdf/2013/en. act. 2013. 0034. pdf

Construction Contracts Act Many unfulfilled promises & False Dawns! Latest Position A delegation from CIF attended a briefing with other industry stakeholders in the Department of Jobs, Enterprise and Innovation on Thursday 18 th December, hosted by Minister Ged Nash and Minister Paudie Coffey. Minister Nash outlined the program to completion which he endeavours to complete by Spring 2015 and includes the following: 1. An advertisement by the Public Appointments Service for applications for appointment to the Panel of Adjudicators is expected to be published in mid-January 2015 with a 4 week window. 2. The selection and appointment of a chairman from those applicants to the Panel of Adjudicators. 3. The publication of the proposed final draft of the Code of Practice for Adjudication. 4. Announcement of the date for the signing of the commencement order and subsequent commencement date for the Act

Construction Contracts Act ¢ The Minister introduced the new senior staff, including Loughlin Quinn who is Director of the new Construction Contracts Advisory Service. Philip Crampton thanked the Minister for his commitment but outlined how the industry was frustrated with progress and simply wanted the date for commencement of the Act. Minister Nash stated that he is fully committed to delivering the Act but will make no apology for the fact that he intends to complete the implementation with a full and unquestionable process. ¢ Other matters raised by stakeholders during the discussion included inconsistencies within the Act and Code, the role of the chairman and the absolute need to be planning in advance for changes to the Rules of Court to permit access for a swift enforcement process, in the event that a party were to receive an adjudicator’s award.

Construction Contracts Act ¢ It has been recently reported that the appointment of a Chairman of the Adjudicators Panel is at an advanced stage. ¢ Further meeting to be arranged with Loughlin Quinn. ¢ PTCM associations currently exploring possible amendments to the act. ¢ Code of Practice for Adjudicators.

New EU Directives http: //cif. ie/images/pdfs/EUProcurement. Directives. pdf

Questions & Answers

Building Control, CIRI, Planning & Miscellaneous Update Hubert Fitzpatrick CIF Director Housing/Planning

Matters to be Addressed ¢ ¢ ¢ ¢ ¢ Building Control (Amendment) Regulations 2014 Building Regulations (Part E Amendment) Regulations 2014 New Vacant Completed Housing Units: National Statistics Central Bank: Residential Mortgage Lending CIRI: Update and CPD Planning and Development: Proposed Amendments Irish Water: Vacant Units, Regional Leads Taxation measures for development of zoned serviced land Construction Financing Options Event: 4 March 2015

Building Control (Amendment) Regulations 2014 BCMS at end 2014 ¢ 5, 194 Commencement Notices lodged ¢ Valid – 86% ¢ 80, 000 documents filed ¢ 273 Completion Documents

Building Control (Amendment) Regulations 2014 Sample Matters Arising: ¢ Undertaking By Builder – must only apply for works under his control ¢ Define responsibilities of ancillary builders/ ancillary contractors and/or suppliers ¢ Define responsibilities for Completion Certificates and ancillary completion Certificates ¢ Situations where specialist contractors are the main builders ¢ Builders accepting appointments as Builder for works outside of their scope of responsibility

Building Control (Amendment) Regulations 2014 Completion Certification for Multi Unit Development ¢ ¢ Scheme Development in Phases - Separate Commencement Notices for each phase of development State of compliance of developments outside the legal boundaries of the property fundamentally influences the compliance of development within those boundaries with the Building Regulations: Housing Schemes: l Potable water supply l Disposal of foul water l Unimpeded access for fire services Apartments: l Structural integrity of the frames l Safe means of escape etc

Building Control (Amendment) Regulations 2014 ¢ ¢ ¢ Certification of compliance with planning separate process to that for compliance with building regulations Planning compliance most frequently required as part of conveyancing process for disposal of property Possible lodgement of completion cert with BCA prior to practical completion

Building Control (Amendment) Regulations 2014 ¢ Ancillary Completion Certificates CIF Ancillary Certificates – sub contractor and sub contractor for works including related design undertaken l Professionals Ancillary Certificates for design where design only undertaken by specialist and works subsequently carried out by builder l

Building Control (Amendment) Regulations 2014 Good Practice Guide to be developed for one off houses ¢ Latent Defects Insurance? ¢ Commenced March 2014 ¢ Consultation re experience of past 12 months ¢ Self Build Sector? ¢

localgov. ie BCMS Building Control Authority (BCAs) – Inspections Stages for Compliance Stage No Building Elements 1. Design Stage Paper Assessment- A-M S 11 Requests Substructure & Drains A, C, D, H A-M Excavation Ready for Inspection Superstructure walls and floor Joists laid Services, ventilation etc Roof Construction & bracing complete First Fix Services Complete & Ready for Occupation A, C, D, H, , B, K, L, M Foundations, pipe covers A, C, D, H, , B, K, L, M Access, ventilation, walls A, B, D, E, F, M Fire, insulation, floorssound Fire, bracing, water storage Installation manuals 2. Formation Level 3. Foundations 4. Ground Floor Level 5. Wall Plate Level 6. Roof 7. Certification Relevant Part of Elements to be Inspected Building Regulations / Checked A, B, J, K A-M Ground bearing, Drainage

Building Control (Amendment) Regulations 2014 Certificate of Compliance on Completion ¢ Only necessary to upload the: l l Statutory CCC Form Inspection Plan as Implemented Table/ Schedule of Compliance Certificates & Documents which show compliance was achieved – include details which differ from those listed in the CN Schedule Other documents/certificates may be requested by the BCA

General Comments – BCAR 2014 ¢ Builders must ensure that a validated Commencement Notice is lodged with the BCA prior to commencing works ¢ No provision for retrospective lodgement of Commencement Notices ¢ Assigned Certifier’s project management role for lodgement of drawings and updating the BCMS IT System. If this role is not undertaken effectively, it could lead to serious difficulties on application to the BCA for registration of the Certificate of Compliance on Completion

General Comments – BCAR 2014 ¢ Nature of Inspection Plan to be implemented should be known to the Builder before he signs the contract for the works. ¢ Builder to determine the scope of ancillary certification required from sub-contractors engaged on the project ¢ Ancillary certificates to address design work undertaken by sub-contractors engaged on the project

General Comments – BCAR 2014 ¢ Refer to the Code of Practice for responsibilities where Owner, Assigned Certifier or Builder changes during the course of the project ¢ The Builder accepts full responsibility for any design work undertaken by him ¢ The Builder can only rely on the drawings and specifications supplied to him by the designer for the project

General Comments – BCAR 2014 ¢ The Regulations haven’t changed, but the administrative and oversight requirements have. ¢ The Builder always had a responsibility to build in accordance with the Building Regulations. ¢ Restriction on occupation of new buildings or works until the Certificate of Compliance on Completion is registered with the Building Control Authority

Draft: Handover & Commissioning Certificates ¢ ¢ ¢ Mechanical Ventilation and Heat Recovery Heating Systems Waste Water Treatment System Solar Thermal System Air Tightness Test Fire Detection & Alarm Systems

Typical construction products in small building works where certification may be required- DRAFT ¢ ¢ ¢ ¢ ¢ Reinforcing steel – EN 10080 Concrete – EN 206 Concrete Blocks – EN 771 -3 Clay Bricks – EN 771 -1 Masonry mortar – EN 998 Wall ties – EN 845 -1 DPC –EN 14909/EN 14967 Hardcore – SR 21: 2014 Annex E Radon sump – (IAB Cert/ Other) DPM or Radon Barrier – EN 13967/ IAB

Typical construction products in small building works where certification may be required- DRAFT ¢ ¢ ¢ Floor Insulation Drainage Structural steel – EN 1090 -1 Lintels – EN 845 -2 Flue Liners Timber Joists – EN 14081 Joist hangers/ straps – EN 845 -1 Wood based panels – EN 13986 Wall insulation Prefabricated truss – EN 14080 Cut roof timber – EN 14081 Roofing felt – EN 13707

Typical construction products in small building works where certification may be required- DRAFT ¢ ¢ ¢ ¢ ¢ Breather membrane – EN 13964 Clay roof tiles – EN 1304 Concrete roof tiles – EN 490 Fibre cement slates – EN 492 Lead flashings Windows & doors – EN 14351 -1 Roof insulation Water storage tank Fire stopping Render – EN 998 -1

Building Regulations (Part E Amendment) Regulations 2014 ¢ ¢ Operative 1 July 2015 where works commence or take place after 1 July 2015 Mandatory requirement for acoustic testing per group or sub group type in accordance with various construction processes

Part E: Table 3 A - Minimum frequency of testing per group or sub-group type

Part E: Table 3 B – Other Constructions minimum frequency of testing per group or sub-group type

New Vacant Completed Housing Units per 1, 000 Households

New Vacant Completed Housing Units per 1, 000 Households

Central Bank: Residential Mortgage Lending FTBs: 10% deposit up to € 220 k, 20% thereafter ¢ All other cases: 20% deposit ¢ LTI at 3. 5 ¢

CIRI – Update To become statutory in 2015 ¢ General Scheme of legislation to go to Cabinet ¢ 1, 578 Applications: ¢ 563 registered members l 128 under review l 887 in process l

CPD: Key Pillars Identified Building Regulations ¢ Health & Safety ¢ Technology & Innovation ¢ Business & Management ¢

CPD Applies to management and employees directly engaged in on site construction activity ¢ Structured training can be delivered to craft workers and general operatives by member who attended structured meeting ¢ CIF structured Branch meeting to qualify for 2 points ¢

CPD ¢ Unstructured Informal CPD activity Toolbox talks, general induction, risk assessment briefings l Reading Construction magazines, journals, technical literature l Attendance at site visits organised by CIF, Professional bodies or similar l

Planning and Development: General Scheme of Bill - Proposed Amendments ¢ Review of Part V l l l Reduction to 10% social housing Alternative off site option only to be used in exceptional circumstances On-site provision to be pre-dominant default option Existing use value – to disregard value of any existing buildings to be demolished Monetary payments no longer an option for compliance

Planning and Development: General Scheme of Bill - Proposed Amendments ¢ Vacant Site Levy Failure to commence development for a vacant or under utilised site within 3 years of grant of permission l Lodge a planning application for the site within 3 years of making of development plan or scheme l

Planning and Development: General Scheme of Bill - Proposed Amendments ¢ Reduced development contributions for planning permissions yet to be activated: l Retrospective application of updated development contribution rates to older permissions

Planning and Development: General Scheme of Bill - Proposed Amendments ¢ Modification of duration of planning permission in certain circumstances: l “Use it or loose it” approach for future planning permissions for housing projects by a period not exceeding 2 years

Planning Amendments To Be Sought ¢ ¢ ¢ ¢ Simplified Process for changing approved house types Timeframe for approval of planning compliance documentation Statutory timeframe for TIC and release of Bonds/Security Deficits in water services not to prohibit planning approvals in principle Provision for ‘Economic Viability Testing’ Standard setting Body to be DECLG Reduce observation period to 4 weeks

Planning Amendments To Be Sought ¢ ¢ ¢ Locus Standi for Objectors S 48 development contributions and property tax Second extension to planning permissions Standardise planning conditions Prescribed period for An Bord Pleanala to make determinations Local Area Plans and Framework Plans

Irish Water: Vacant Units ¢ Non Permanently Occupied Tariff: € 62. 50 per service pa l € 125 for water and waste water l ¢ Contact Irish Water Call Centre

New Connections - Regions Donegal Southern Region Kerry Cork City Waterford Kilkenny Wexford Carlow North West Region Cavan Donegal Galway City Galway Leitrim Longford Mayo Monaghan Roscommon Sligo East Midlands Region Clare Limerick City Tipperary North Tipperary South Laois Offaly Westmeath Greater Dublin Region Louth Meath Kildare Wicklow South Dublin Fingal Dublin City Dun Laoighre/ Rathdown Sligo Mayo Leitrim Monaghan Roscommon Longford Galway Cavan Offaly Cork 34 Dublin Kildare Wicklow Laois Tipperary Kerry Meath Westmeath Clare Limerick Louth Carlow Kilkenny Waterford Wexford

Irish Water: Regional New Connections Leads ¢ ¢ ¢ Greater Dublin – Oliver Fogarty olfogarty@water. ie East/Midlands - John O Shaughnessy joshaugh@water. ie South - Catherine Sheridan csheridan@water. ie North and West – Seamus Lee slee@water. ie Leads to meet with contractors/ developers in regions

Irish Water Connections Policy awaited from Regulator ¢ Provision for ‘Self Lay’ option for developer/ contractor for services up to 300 mm in width ¢ Acceptable Construction Details for services to be developed ¢

Taxation Measures: Department of Finance Consultation Document The potential of Taxation Measures to encourage development of Zoned and Serviced Land ¢ Submissions by 8 May ¢ Views on extent of undeveloped zoned and serviced land ¢ Reasons for non-development of such land ¢ Corrective tax measures that could be introduced to encourage development ¢ Basis of calculation of such corrective measures ¢ Impact of such a measure on property acquisition, development and construction decisions

Construction: Financing Options –the new reality ¢ ¢ ¢ Discuss the need for risk capital in financing construction and development Explore typical financing structures and how to secure development finance Introduce providers of risk capital and intermediaries Strengthen partnerships between developers, equity providers and senior debt providers 4 March 2015: Marker Hotel Dublin 2

Questions & Answers