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alistair  
#1 Posted : 24 August 2016 10:49:20(UTC)
Rank: Forum user
alistair

I would be interested in any views on this. Some contractors who are appointed by us as PCs have added huge extra charges for fulfilling this role. My view is that compliance with CDM is statutory and should be part and parcel of completing the project and should not be a significant additional charge. To make matters worse, one such contractor who charged us then proceeded to fail to comply with about 75% of their PC duties and produced a diabolically poor construction phase plan (after the start of the project)! Next they will be adding costs for their workers PPE, etc.
A Kurdziel  
#2 Posted : 24 August 2016 10:57:29(UTC)
Rank: Super forum user
A Kurdziel

It’s called capitalism. They are free to charge for what they want and you are free to find another contractor! And of course they charge for their employees PPE etc. It’s just that most of them don’t itemise it. After all they are in the business of making money.
James Robinson  
#3 Posted : 24 August 2016 11:03:27(UTC)
Rank: Forum user
James Robinson

Make it a line item on the quotation. That way if they charge too much you can get another quote from another company just for the PC role - there are lots of companies that do just this - and they then revert to a contractor reporting to your new PC. As for costs for being the PC, some can be absorbed, and sometimes they can be very high. I know and have worked for companies where the cost exceeds £million a year for PC role alone. As for the work to date - if you don't like them - don't use them again. BUT.... remember as the Client, if you are appointing on price/quality/criteria of your choice, etc., you can be held to account and asked to justify your selection under the Regs.
paulw71  
#4 Posted : 24 August 2016 13:27:42(UTC)
Rank: Super forum user
paulw71

Of course they are going to charge extra for taking on the role of PC. There is more work involved and increased liability should things go chests up. Would you take on increased duty and liability in your job for a minimal amount ? Doubt it. As for you not being happy with the service and the PC not fulfilling their duties and producing a CPP after works have commenced then I suggest you look carefully at your responsibilites and duties as Client.
peter gotch  
#5 Posted : 24 August 2016 13:34:01(UTC)
Rank: Super forum user
peter gotch

Alistair Someone in your procurement department or equivalent needs to sort out your specification when you go out to tender, so that tenderers are on a level playing field.
RayRapp  
#6 Posted : 24 August 2016 13:52:51(UTC)
Rank: Super forum user
RayRapp

Alistair, not the responses you hoped to get I should imagine. I for one would be interested excatly what are these 'extra charges'. The role of the PC is clearly defined in the CDM Regs, as such I cannot see how a PC can make charges for discharging their statutory duties. For example, if a PC charged for providing a CPP as far as I'm concerned this cost should be absorbed within the project costs.
alistair  
#7 Posted : 24 August 2016 16:35:28(UTC)
Rank: Forum user
alistair

Thanks to you all for very helpful responses. Ray - exactly my sentiments and the way I see it. Peter - our building dept are reviewing the specifications. Paul - many thanks but just to clarify, our buildings dept arrange the works and take on the main client roles. I cover all areas of the school and picked these issues up while auditing - they are now being addressed. If a contractor purports to be able to fulfil the PC role they have to accept their statutory duties as do we all. I guess there may be some additional charges e.g. the welfare facilities but as Ray states these should be absorbed in the cost at the outset.
Ron Hunter  
#8 Posted : 24 August 2016 16:58:04(UTC)
Rank: Super forum user
Ron Hunter

alistair wrote:
To make matters worse, one such contractor who charged us then proceeded to fail to comply with about 75% of their PC duties and produced a diabolically poor construction phase plan (after the start of the project).
Seems you've some work to do to get your own (CDM Client) house in order then - that's a failure of statutory duty by the Client!
alistair  
#9 Posted : 24 August 2016 17:17:54(UTC)
Rank: Forum user
alistair

Very true Ron. We have had some significant changes in personnel in this dept and there is work to be done. It does still astonish me that many contractors do not have a good understanding of CDM yet --- but --- I best say no more at the risk of committing more self-destruction!
Clark34486  
#10 Posted : 24 August 2016 17:44:27(UTC)
Rank: Super forum user
Clark34486

'management fee' all of our incumbent 'approved and appraised' PC partners are charging contract = 10% Simply shows how naïve the 'clients' are because I generally find the PC doesn't fulfil the role adequately come-what-may
boblewis  
#11 Posted : 24 August 2016 21:25:08(UTC)
Rank: Super forum user
boblewis

If you appoint a contractor as PC without placing it in the tender you really are asking for trouble. You really cannot simply select a contractor after tender assessment and award and then appoint them as PC.
sidestep45  
#12 Posted : 25 August 2016 09:06:19(UTC)
Rank: Forum user
sidestep45

It would help if you could indicate the size of project you're talking about, being PC on a large project will bring additional considerable costs, constructing and maintaining suitable offices and welfare establishments, constructing and maintaining site security reviewing method statements COSHH assesments lift plans etc, procuring competent contractors, inducting all people on site organising coordination meetings amongst contactors, ensuring first aid cover, public relations etc. Why would you expect a contractor to provide these services for free?
alistair  
#13 Posted : 25 August 2016 12:28:19(UTC)
Rank: Forum user
alistair

It was a kitchen refit in a building accommodating 70 occupants and involved demolishing an internal wall and the usual trades. However, all the tasks are required by CDM as statutory requirements and regardless of the size of project the should be absorbed in the cost. Maybe we are at cross purposes because what appears to be happening is that they are charging for 'hardware' elements e.g. welfare, site offices, etc then adding an additional 'admin' charge just for being appointed as the PC. Re RAMS, etc I cannot see how they can charge for these under the CDM 'banner'. It may not happen, but lets say the CDM Regs are repealed by the Brexiteers. A company managing a large project would still need to have all the facilities in place to comply with HSW Act / MHSWR / and whatever type of construction Regs were to be introduced, etc, would they make an additional charge for fulfilling these duties? The liabilities are always there.
jde  
#14 Posted : 25 August 2016 12:44:12(UTC)
Rank: Forum user
jde

Surely at tender stage, each contractor will have supplied you with their quote for the works as PC. All contractors have to meet their statutory duties under CDM and, surprise it costs money. You mention about producing CPP after the start date and these were poor! Client and the PD/CDM(C) should not have let them commence until the plan had been approved. I wonder if you query the charges presented by the CDM(C) / PD?
alistair  
#15 Posted : 25 August 2016 12:59:59(UTC)
Rank: Forum user
alistair

jde - thanks for your comments. It is too convoluted to explain in short detail but the employee dealing with it from my employer (Client) left, someone new came in, someone very senior gave the go-ahead (as the work has tight deadlines - 65 boys would get very angry if they are not fed - sorry being flippant there), the new person who came in was 'CDM challenged'. I was alerted to it and came on the scene a bit too late. Did we query the charges? Not much, due to the performance of the contractor in relation to their PC duties and h & s standards in general, we are paying them £zero in respect of their additional fee added for fulfilling the PC role.
Ant Elsmore  
#16 Posted : 25 August 2016 14:40:03(UTC)
Rank: Forum user
Ant Elsmore

Afternoon Alistair, As a principal contractor I am very surprised by your view that the PC role should be carried out for free. You appear to be suggesting that being a PC is exactly the same as being a contractor who is employed to carry out a specific item of work? Just to explore your viewpoint could you elaborate *in your direct experience*: What facilities does a PC provide above and beyond those of a contractor? How much do you believe these facilities cost? Is it not reasonable to pay an admin charge for someone taking ownership of sorting these facilities in order to allow your (the clients) work to be undertaken? What responsibilities does a PC take on above and beyond those of a contractor? How much do you believe the training and physical provisions cost to account for the entire site above and beyond those of a contractor? What site wide management tasks does a PC do above and beyond those of a contractor? How long do you believe these tasks take? How many repetitions of each task do you think are undertaken? How many people do you believe it requires to carry out these tasks? What do you think such people get paid in order to be on-site in order to carry out these management tasks and manage the site facilities? If your answers are indicating that the cost to any of the above questions is above zero then may I suggest that this is why a contractor would not take on PC responsibilities without suitable remuneration; and that is without even considering the legal repercussions of the PC role. Cheers Ant
boblewis  
#17 Posted : 25 August 2016 22:25:46(UTC)
Rank: Super forum user
boblewis

Ant Elsmore wrote:
Afternoon Alistair, As a principal contractor I am very surprised by your view that the PC role should be carried out for free. You appear to be suggesting that being a PC is exactly the same as being a contractor who is employed to carry out a specific item of work? Just to explore your viewpoint could you elaborate *in your direct experience*: What facilities does a PC provide above and beyond those of a contractor? How much do you believe these facilities cost? Is it not reasonable to pay an admin charge for someone taking ownership of sorting these facilities in order to allow your (the clients) work to be undertaken? What responsibilities does a PC take on above and beyond those of a contractor? How much do you believe the training and physical provisions cost to account for the entire site above and beyond those of a contractor? What site wide management tasks does a PC do above and beyond those of a contractor? How long do you believe these tasks take? How many repetitions of each task do you think are undertaken? How many people do you believe it requires to carry out these tasks? What do you think such people get paid in order to be on-site in order to carry out these management tasks and manage the site facilities? If your answers are indicating that the cost to any of the above questions is above zero then may I suggest that this is why a contractor would not take on PC responsibilities without suitable remuneration; and that is without even considering the legal repercussions of the PC role. Cheers Ant
Agree 100% It seems that clients are truing to bend the rules to get work for nothing. Same with the PD trying to pass the H&S file to others at no cost. Designers have to do handover inspections so they can certainly complete a H&S file. CDM 1994 and 2007 mistakes being repeated
alistair  
#18 Posted : 26 August 2016 10:27:04(UTC)
Rank: Forum user
alistair

Nothing in life is for free and I never said that. When I said the cost should be subsumed in the overall cost I was indicating that the overall cost in a PC's bid for the job should be THE cost and they should not try and earn extra for meeting their statutory requirements. It is as if h & s is an add-on when it should be considered as an integral part of the job. My gripe is that, in the incident I was referring to, the PC added an extra charge without actually delivering what they charged us for so maybe my viewpoint is influenced by this individual incident. The construction industry still has a long way to go and the next time I hear "well, h & s, it is only common sense" I will go into meltdown. Common sense is like deodorant - the people who need it the most don't use it.
RayRapp  
#19 Posted : 26 August 2016 10:44:06(UTC)
Rank: Super forum user
RayRapp

Alistair, I might be in the minority but for what it's worth I agree with your comments. I fail to see how a PC can justify making additional charges for carrying out their statutory duties. If, the PC did work which was above and beyond what is expected, then fair enough. Whilst it could be argued the work the PC should carry out is articulated in the T&Cs of the contract, surely when it comes down to the role the PC is obliged to carry out these do not have to be spelled out to the ength degree! Love the common sense quote - my new mantra for the foreseeable future. :)
James Robinson  
#20 Posted : 26 August 2016 10:56:10(UTC)
Rank: Forum user
James Robinson

Hmm..... For some projects, when acting as PC, I have to provide; Inductions Welfare Cabins Site Fencing Operate a Permit System Security etc. If you want the costs absorbed then you will get a quote from me that will have a very large amount of wiggle room in it for the above. If my competitor quoting now makes the PC role a separate line item, your procurement people will want to know why I am charging an additional X% for the same job. I think you need to go back to procurement as originally stated and get the tenders sorted out properly. At the quotation stage are you asking for them to be the PC? If you are, why not ask for a price to cover this? Are you adding the PC role to the contractor duties after the job as been awarded? All of three of these questions above will make a difference to quotes, how the job runs, costs, and most importantly the legal aspects of CDM (to the PC AND Client).
SP900308  
#21 Posted : 26 August 2016 11:05:59(UTC)
Rank: Super forum user
SP900308

Based on the requirement for clients to appoint Principal Contractors as soon as is practicable where more than one contractor (or foreseeably more than one), this appointment (the requirement for such appointment) should be known at a very early stage. Additionally, the mere fact clients are required to ensure SKE etc. for statutory duty holder appointments should be reinforcing this fact to those being assessed for such appointments. In normal circumstances, why this is a retrospective cost addition is beyond me. Simon
alistair  
#22 Posted : 26 August 2016 12:23:50(UTC)
Rank: Forum user
alistair

The PC is appointed early enough and we want a price for the work to be carried out to meet the h & s legal requirements. We do not want contractors trying to rob us by adding extra costs on just because they think they can use CDM as a reason. We have had the same from scaffold companies. For example, we asked for a scaffold to be erected on one of our private properties for roofing work. They do it but do not adequately protect the area above the entrance to the front door, piece of roofing material falls and narrowly misses the resident (Senior member of our teaching staff). Response from scaffolders = "oh if you wanted it double boarded with poly sheet between boards and with brick guards without gaps, etc that is regarded as an extra h & s measure and would have cost you an extra £500! Okay, yes, there is a competence issue there and our manager appointing them maybe should have spelt the requirements out in more detail, but it is indicative of the industry. We even had an asbestos survey company a few years ago try to add some extra costs for compliance with the Work at Height Regs - we **$$** them right off.
Chris c  
#23 Posted : 26 August 2016 12:35:41(UTC)
Rank: Forum user
Chris c

James Robinson wrote:
Hmm..... For some projects, when acting as PC, I have to provide; Inductions Welfare Cabins Site Fencing Operate a Permit System Security etc. If you want the costs absorbed then you will get a quote from me that will have a very large amount of wiggle room in it for the above. If my competitor quoting now makes the PC role a separate line item, your procurement people will want to know why I am charging an additional X% for the same job. I think you need to go back to procurement as originally stated and get the tenders sorted out properly. At the quotation stage are you asking for them to be the PC? If you are, why not ask for a price to cover this? Are you adding the PC role to the contractor duties after the job as been awarded? All of three of these questions above will make a difference to quotes, how the job runs, costs, and most importantly the legal aspects of CDM (to the PC AND Client).
no one has mentioned stakeholder engagement sub contractor management and contractors Novated to the PC, utilities / service providers and interface with regulatory bodies management of local councils but to name a few this all takes time and had an additional cast Chris
Ant Elsmore  
#24 Posted : 27 August 2016 18:08:33(UTC)
Rank: Forum user
Ant Elsmore

Alistair, Got to say I'm a bit lost with regards to exactly where the root of this issue lies tbh. Have you tendered a PC role, appointed a PC at the outset and paid the fee but have subsequently been let down by the PC's performance? Or, have you appointed a "contractor" then changed their appointment to act as a PC (which is how most responders have taken your opening posts)? If the former then I understand why you are aggrieved and agree they should not be charging you for compliance with CDM- they should be doing their job. If the latter then the company were probably never in a position to give you what you wanted and should not have been put in the position of fulfilling the role of PC- which equals a client failure. Sorry if you believe you have clarified this somewhere in the post but I'm getting mixed messages from the replies. Cheers Ant
alistair  
#25 Posted : 30 August 2016 10:10:25(UTC)
Rank: Forum user
alistair

Ant - thanks for your interest and yes, client failure, was a big issue. I tried to clarify earlier, but my basic gripe is contractors generally adding extra costs to a job by quoting that they have had to do extra to comply with their h & s duties / Regulations. I just want them to quote for the job and do the job right. As mentioned earlier the incident in question was just a bit of a mess and I was not involved in setting it up. The PC who was appointed and charged us for PC duties did not deliver (another contractor actually had to bring in welfare facilities for their guys). This is as much down to our staff who should not have let the work start without checking. The new member of our staff (with huge CDM responsibilities within his role) and myself got off to a rather bad start when he said in his first week "well CDM is not really my thing!" It is Monday - start of a new week and, as the song goes - things can only get better.... Best wishes.
Ant Elsmore  
#26 Posted : 30 August 2016 11:06:56(UTC)
Rank: Forum user
Ant Elsmore

Contractors eh!....Who'd have em ;-)
walker  
#27 Posted : 30 August 2016 11:16:31(UTC)
Rank: Super forum user
walker

so...........your "procurement" asked the supplier for an apple but really wanted a apple and an orange. And its the supplier's fault for not realising, and you expect a free orange anyway.
alistair  
#28 Posted : 30 August 2016 12:13:19(UTC)
Rank: Forum user
alistair

Aha - something like that but not quite. Our "procurement" asked for a complete basket of fruit but we only got a basket with 90% fruit in it - then the fruit shop assistant said - if you want grapes as well, they are an extra £5.
walker  
#29 Posted : 30 August 2016 12:26:28(UTC)
Rank: Super forum user
walker

Your procurement asked for fruit, but without specifying which fruit (and thus getting a suitable and sufficient basket), wanted grapes throwing in for free after the delivery was confirmed. Grapes (like PD arrangements) are expensive fruit. By the way, the fruit basket would have been technically correct if tomatoes had been included. ;-)
alistair  
#30 Posted : 30 August 2016 15:41:34(UTC)
Rank: Forum user
alistair

mmm - I sort of get the point and I agree that our procurement could have been more helpful. But I would still say that any reputable fruit retailer would know that a fruit basket would not be complete unless in contained grapes (and tomatoes of course).
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