1 Approved Contractors Scheme? George Dunlop FCIOB Friday 16 th November Douglas. Worldwide Construction Consulting

1www.hillintl.com www.jrknowles.com

Approved Contractors Scheme?

George Dunlop FCIOB

Friday 16th November Douglas.Worldwide Construction Consulting

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Original Remit

George DunlopClaim to Fame Author of IoM Construction Industry Review 2006

Validity of Fame How many read Report and quality of Action!

Remit: Recommendations for Sustainable Construction Industry on Isle of Man

www.hillintl.com 2 www.jrknowles.com

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Four Key Recommendations

1. Revision to CPU procedures

2. Manx Construction Contract (NEC 3)

3. Manx Fiscal Benefit (major contracts)

4. Revision to Approved Contractors Scheme

Broad consultation on Key points plus a range of other comments / recommendations


Original Recommendations

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The Approved Contractors Scheme Not comprehensive Limited “teeth”, no warranty, little penalty Paper exercise Too focused on DTi and not Industry Little or no consumer / tax payer protection Complex,26 Special categories {552}; 3 General

{55} & a Site Only {105} (712 entries, with duplication)


Original Recommendations

5www.hillintl.com 5 www.jrknowles.com

Approved Contractors

Consultation on Potential RevisionBasis for Revisions• Reviews findings• Review consultation• Sub-group meetings• Industry changes on IoM• Treasury meeting • Advice from all interested parties

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Format

• Proposed Key Issues

• Open discussion

• Written response on questionnaire

• Sub-Group Analysis

• Draft Proposal



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Issue 1

Why have a List of Contractors?Majority of industry and Treasury Audit belief there

is benefit and needPotential “protection” for Government departments

and domestic clients It may encourage greater “professionalism” within

industry It should improve “sustainability of industry”



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Issue 1 Cont’d

Why have a List of Contractors?Limit companies to “real companies”

probably “registered and + 5 employees” with companies being “responsible for sub-contracted work”

Inclusion should create a “positive image” for industry and organisations



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Issue 1 Cont’d

Why have a List of Contractors?It should be a “marketing benefit”It should “protect” the island industry from

“unregistered off-island organisations” It should have ability to reinforce existing

IoM legislation “reduced VAT”; “Construction Contracts 2004”; HSE etc.



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Issue 2Title and organisations?

1. Accredited Construction Contractors (ACC) on Isle of Man

2. All construction related organisations wishing to provide construction services on IoM, including public organisations. (including DLO’s)



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Issue 3

Who should administer & publish key information on ACC organisations?

1. The organisation with best IT systems.

2. DTi / Government or Employers Federation

3. This is an admin function not control / advice



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Issue 4Who supplies information and what is on ACC

system ?1. Organisations submit details annually on

up-date principle2. Keyword search facility for ACC users, type

and scope of services3. Primary organisation information as

applicable



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Issue 5Who checks or gives warranty to ACC register1. In principle the “organisations” are trusted

to provide accurate details2. The appropriate Government department

should warrant action on fiscal / legal / VAT type complaints

3. The Employers Federation warrants / monitors performance details (ManxMark)



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Issue 6How should the ACC be coded / classified?1. According to “own” keyword description

and projected size of project2. Potentially three basic categories:• Main Contractors, any size• Specialist main &/or Sub-contractor• Project related



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Issue 6 Cont’d

3. How should organisations be listed, three groupings in size order; alphabetical order?

4. How should ACC be accessed, by keyword; by organisation; by size of projects; by specialism (keyword); depends on IT and consumer demand.



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Issue 7

How should ACC be monitored?

1. Strategically by a Joint DTi / EF group?

2. Checked, by exception, by Government as part of warrant, Treasury; OFT; VAT; other legal requirements

3. Performance to be checked, verified and policed by exception by EF



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Issue 8

How should ACC fit with other Review Recommendations?

1. CPU procedures, not changed for major contracts by ACC, or should they?

2. Manx Construction Contract (NEC 3), should be seriously considered as requirement for ACC companies (Issue9)



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Issue 8

How should ACC fit with other Review Recommendations?

3 Manx Fiscal Benefit (MFB), if ACC is comprehensive and with correct categories this should follow, but is it desirable?

4 Training issues, in review, but changing.



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Way Forward

• Further discussion on Issues?

• Response to questionnaire, either written format to DTi or electronic response to DTi

• Review of discussion / response by Review Group

• Publication of joint DTi / EF Proposal Document.



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Thanks for Listing and Contributing

George Dunlop

Further comment welcomed on

[email protected] or 0141 779 8130



Documents

1 Approved Contractors Scheme? George Dunlop FCIOB Friday 16 th November Douglas. Worldwide Construction Consulting