A host of legal changes are coming into effect within the construction industry this month, which will undoubtedly impact businesses and contractors.
Many of the changes follow Government policy on health and safety and sustainability and cover many day-to-day dealings within the industry.
Added health and safety protections
Firstly, the health and safety of ‘limb’ workers are set to be improved as they now must be treated the same as contracted employees for personal protective equipment.
Limb workers, who often have casual working patterns, must now be assessed and given appropriate safety gear free of charge.
Firms are being urged to check whether the new law applies to their workforce.
Red diesel given the red light
Meanwhile, the petrol that construction firms can use has undergone a shake-up.
It is now illegal to pour red diesel into the tanks of machinery and vehicles used for construction in the UK. Contractors now must use alternative fuel or buy white diesel, which comes with a higher price tag.
Experts have warned the change could lead to rising construction costs and higher house prices.
Tougher rules on late payments
Another change will see contractors made to provide more payments on time to win Government contracts. It comes as the Government has reduced the amount of time it will accept for late payment from its suppliers. Bidders for Whitehall contracts worth more than £5 million per year now must prove they have settled 90 per cent of invoices received in a defined period within 60 days.
There will be consequences for firms if they have not paid 95 per cent of bills within this period as they must provide a plan to show how they will hit the target.
Previously, bidders only had to have 85 per cent of their invoices paid on time. It is hoped the new law will help create stronger supply chains.
Fighting against climate change
The fight against climate change also features in the new legislation. Listed firms with more than 500 employees are now obliged to disclose information on climate change for the 2022/23 financial year, such as the arrangements they have in place for assessing and managing climate-related risks.
Windfall tax to replace unsafe cladding
The impact of the Grenfell Fire tragedy continues as a windfall tax on housebuilding comes into force. Companies that make more than £25 million a year in profit from building and selling homes will have to pay a new Residential Property Developer Tax. The money will be put towards the cost of removing dangerous cladding from residential buildings across the UK. Eligible firms will pay four per cent on all relevant profits over the £25 million threshold, which HM Revenue & Customs expects to raise more than £1 billion in the next five years.
Pay boost for low paid workers
Meanwhile, the lowest-paid workers are set for a pay rise as the National Living Wage rose from £8.91 to £9.50 an hour from 1 April. The hourly pay for apprentices has also increased to £4.81.
If you are looking for advice on the latest construction law, contact our expert team today.