Tag Archives: contractor

Awards, News

Awards hattrick for 6CATS International

6CATS International – the global contractor management specialist – walked away with the Best International Contractor Provider accolade at the 2022 Contractor UK awards last night. This marks the third year in a row that the firm has won this prestigious award.

The Contracting Awards recognise the top contractor suppliers in the UK and are judged by a panel of experts from across the contractor, recruitment and compliance sector.

Michelle Reilly, CEO of 6CATS International and founder of 6CATSPRO commented:

“This is another huge win for the 6CATS International team. Gaining this recognition three years running shows that the solutions we’ve worked so hard to develop really deliver the best level of service that sets us apart from the competition.”

“It’s been an exciting time for us all lately, with the Workwell acquisition earlier this year and a continued increase in demand for our global contractor solutions. We’ve grown faster than we could have imagined in the last year and I’d like to both congratulate and thank the entire 6CATS team for all their hard work and dedication that’s made us an award-winning business.”

News, North of England

New headquarters for fast-growing RECOM Solutions

Fast-growing RECOM Solutions has moved to new headquarters in Greater Manchester to accommodate its expanding team.

RECOM, a construction project management consultancy which also acts as a main contractor, fire protection and cladding specialist, has relocated to Salford Quays after acquiring a three-storey building on the Waters Edge Business Park.

The 4,000 sq ft building provides scope to further expand RECOM’s team, which currently stands at a record high of 30 following recruitment across its operations.

Its move marks a return to Salford Quays, where it was based until 2020 when it relocated to Trafford Park.

RECOM enlisted chartered surveyors Fletcher Bond to assist in the search for new premises after outgrowing its base in Trafford Park.

A fit-out of its new headquarters is under way. The ground floor will feature a reception area, showers and changing facilities and three meeting rooms.

On the first floor will be breakout areas for staff and RECOM’s new fire protection training academy.

The academy will be a live environment for the training of operatives in the latest industry measures, legislation and new products, as well as being a showcase for this specialism to its nationwide client base, in the residential, care home, healthcare, commercial, leisure, education, heritage buildings and industrial sectors.

RECOM is an approved contractor under the UK’s Fire Accreditation Scheme (FIRAS) for its fire protection services, which include fire door surveys and installations, repairs and upgrades, fire strategy reviews, compartmentation surveying, penetration sealing, advice and guidance, training, development and support.

The company is also a member of the Association for Specialist Fire Protection, a trade association for the passive fire protection sector.

The second floor of RECOM’s new HQ on Modwen Road will house office space and the firm’s accounts department.

RECOM, which was founded in 2015 by directors Jason McKnight and Joseph Dillon, undertakes construction project management and main contracting work across sectors including healthcare, education, retail and leisure, commercial and residential. It also provides consultancy services to assist in the delivery of high-quality projects. These services include design, risk, quality, health and safety and sustainability alongside passive fire protection and cladding.

Clients of the company include Barry’s Bootcamp, Pot Kettle Black, Urban Village Bars, WUKPG, Arrowsmith Investments, The Derwent Group, Fletcher Bond, the University of Manchester and the NHS.

Jason McKnight said: “It is the right time to buy a permanent home for the business, and the new premises gives us the scope for further growth in the team across our passive fire protection division and our other services, including our construction offering.

“The Quays is an ideal location and is popular with our staff. It has excellent transport links and amenities, and is a desirable area in which to live, with a number of developments springing up offering private rented accommodation.

“Additionally, our new building is close to the Manchester Ship Canal and it’s only a short walk to Manchester city centre.

“This investment shows our willingness to retain a firm foothold in Manchester and to attract the best possible talent within our sectors. We are currently going through a period of growth and need the best facilities we can provide for our expanding team.”

News

What You Need To Consider If Your Contractor Goes Bust

As a result of the pandemic, we have seen, and advised on, numerous instances where main contractors have downed tools or closed sites. In some cases, this has been a temporary hiatus to construction works as we and our client employers have persuaded or assisted main contractors to return to site. However, we have unfortunately seen occasions where the contractor has gone bust and never returned to site.

If faced with contractor insolvency, we set out below what you need to consider and those matters with which you may need to deal:

 

  1. If you have a funding agreement, notify your funder of the contractor’s situation. Buy yourself some time with your funder to give you breathing space to work out how any outstanding works are to be completed.  Remember that most funding agreements will contain obligations requiring you to provide information (such as news of insolvency) to the funder in a timely fashion.

 

  1. Immediately secure the site and materials on it. Ascertain what you have paid for in full, what is part paid for and what are contractor or sub-contractor assets on site.

 

  1. Prepare a detailed valuation of the works and, if you have one, request the contract administrator to undertake a formal valuation. Ascertain the works to be completed (including any defects not yet rectified), revise any works programme (including ascertaining what is on the critical path), calculate the costs to finalise the works, whether extra funding will be required to finalise them and any disputes about the works already existing.

 

  1. Check insurance coverage and insure the site, the works and check the insurance position in respect of any third party assets to remain on site. The contractor will likely have carried public liability, employers liability, professional indemnity insurance (if providing design) and contractor’s all risk insurance.  These may come to an end with its insolvency or termination of the building contract (see below).  Decide what insurances you will need in place for the future of the project. Also check any insurances you have in place in respect of the project and whether they require you to inform your insurer of the main contractor’s insolvency.

 

  1. Check the contractual documentation:

 

  1. Be it a JCT contract, NEC form of contract or bespoke agreements, they should set out provisions for termination on insolvency of the main contractor. Follow the provisions of your contracts to the letter to formally bring your contract with the main contractor to an end, especially where you want to engage a new contractor to finish any works or oversee their completion yourself.
  2. Is there a parent company guarantee or performance bond you can claim under? Have the trigger events in such agreement occurred?
  3. Do you have any collateral warranties from subcontractors? These may assist you and give you step in rights to take over vital supply chain contracts.

 

  1. Make immediate checks to ensure that documentation for which the contractor was responsible can be located and is up to date (eg health and safety records, drawings, test certificates, manufacturers’ warranties etc).

 

  1. Unless commercially imperative, do not make any further payments to any party about the works until you know your full position.

 

  1. Decide how any outstanding works are to be completed after formal termination of the main contractor’s contract. Generally, the options will be a new main contractor or the employer or a construction manager to manage the existing or new sub-contractors. Agree a new contract with a new main contractor (likely to be on a cost plus basis) or with a construction manager.

 

  1. Take advice as to whether you have any claims against the main contractor and whether these are commercially worth pursuing.

 

The first days after a main contractor has entered into some form of insolvency procedure are critical and it will be an intensive time of information gathering and decision making. It is however hoped that you will have seen some of the warning signs that your main contractor may be in difficulty (eg less activity on site, slow or late deliveries, plant or equipment disappearing from site, requests for accelerated payments, programme issues, persistent rumours about the main contractor’s financial position including sub-contractors and suppliers not being paid, late filing or qualified accounts being filed at Companies House and a new evasiveness in communications) before they go bust and you have been able to undertake some pre-planning before their insolvency occurs.

Please visit: www.conexuslaw.com

IR35 & Contracting, News

72% of contractors remain committed to working for themselves despite COVID-19

New research from leading contracting accountancy firm, SJD Accountancy, has found that the vast majority of UK contractors and freelancers remain resilient and hopeful for the future, despite industry fears caused by COVID-19.

The survey, which took into account the views of more than 2,300 contractors in financial services, IT, and engineering, confirmed that 72 per cent of contractors plan to continue working independently for the next three years at least.

Included in this group were 27 per cent of contractors who see themselves contracting for the next 11 years at least, with 20 per cent feeling ‘very positive’ or ‘positive’ about their future prospects and 38 per cent feeling ‘neutral’.

Concerns linked to the COVID-19 pandemic were evident, with 66 per cent of contractors admitting to being worried about the impact of the virus on their work.

However, 43 per cent of respondents say the pandemic has not affected their work and 62 per cent would still recommend contracting to a friend. One respondent went on to explain their confidence in the market, saying: “Covid-19 and IR35 will have an impact on the market in the short term, but ultimately end-clients still need their projects delivered. Their businesses will not stop working, it’s just that the landscape will be different.”

Most contractors (65.9 per cent) have not applied for financial aid from the government since the introduction of various support measures and only 20 per cent of contractors have used the Coronavirus Job Retention Scheme (CJRS).

The second, third and fourth most common support options used were mortgage holidays (8.9%), VAT deferrals (8.5%) and the Business Bounce Back Loan (6.2%), all of which are delays on payment or loans that must be repaid, rather than support grants.

James Foster, Senior Commercial Manager at SJD Accountancy, said: “Our annual contractor survey has given us some valuable insights into the minds of contractors, and we’re pleased to see the general consensus is that people are still committed and passionate about their careers in contracting, despite the current difficult climate.

“Contractors have been among the hardest hit by the Coronavirus pandemic because bigger companies are receiving significant help from the government, with PAYE employees supported by the CJRS. With this, limited company contractors have been somewhat left behind in terms of financial aid.

“As employees of their companies, most contractors are eligible for the CJRS. However, only a salary can make up part of these CJRS claims and, unfortunately, most contractors draw the majority of their income as dividends and take only a small salary. Therefore, contractors were forced to weigh up if placing themselves on furlough and stopping work altogether was financially worthwhile. It would appear that, in many cases, contractors felt it was not.

“Nonetheless, and despite the uncertainty caused by the crisis, contractors are showing their resilience, with most determined to carry on working for themselves. This should be a welcomed attitude for all because the flexibility and talent within the contractor workforce will have a crucial role to play in the UK’s economic recovery in the months and years ahead.”

SJD Accountancy’s annual survey has been running for nine years and gains valuable insights from the firm’s varied database of contractors and freelancers on leading industry topics, including IR35, pensions and mortgages.

IR35 & Contracting, News

IR35 countdown is on: Leading legal, tax and insurance experts collaborate in event to support businesses

Specialist insurance broker, Kingsbridge, is bringing together leading legal, tax and insurance experts for an interactive event to provide employers, HR teams and recruiters with IR35 guidance as the private sector roll out date looms.

Led by Ann Swain – CEO of the Association of Professional Staffing Companies (APSCo) – the free to attend event will feature two panel discussions:

– Fresh Perspective: James Poyser, CEO, off-payroll.org, Andy Chamberlain, Director of Policy, IPSE, and Andy Robinson Business Development Director, Kingsbridge, will provide invaluable first-hand insights into how all areas of the supply chain should be approaching the 2021 changes.
– Tax & Legal: Andy Vessey, Head of Tax, Kingsbridge, Tania Bowers, Legal Counsel and Head of Public Policy, APSCo, and John Chaplin, Associate Partner, EY, will discuss the latest legislation and provide practical advice on how all parties in the contracting supply chain can best utilise the next six months to prepare for the reform.

The event will also provide those involved in hiring and managing contractors with one-to-one consultations with Kingsbridge’s expert consultants.

Andy Robinson, Business Development Director at Kingsbridge commented:

“While 2020 has been a difficult year, we’re at a stage where planning for the future is critical, and for anyone involved in the supply and management of contractors the most important topic of conversation at the moment is IR35. While the delayed extension was certainly beneficial in some aspects – with our recent research revealing that many employers had reversed blanket ban approaches – the global pandemic has certainly been a distraction for IR35 preparations. With just six months left, now really is the time to get to grips with your contractor determination processes. By bringing together leading industry experts on one platform we hope to equip as many employers and recruiters as possible with the information and guidance they need to ensure we all get IR35 right this time around.”

The event will take place on 12th November – Register for your place today https://lp.kingsbridge.co.uk/virtual-industry-insight_pr/