Rank: Forum user
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I have been asked to analyse the cost to the company of carrying inductions on site, we currently have around 50 sites with inductions being completed on a daily basis for around 65% of the site. The MD & HR dept want to see the cost and ideally want to either charge the sub-contractors or place a levy on the contractors based on a percentage of their contract value.. Can this done as we are requesting them to attend the induction or by adding the levy in to the terms & conditions of the order make it lawful to charge.... Your comments will be most appreciated as I feel this is not the way forward and could be classed as training and therefore cannot be charged or levied
Thanks in advance
Regards Paul R
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Rank: Super forum user
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As long as you make it clear in the contract thje answer is YES
Bob
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Yes you could probably do it but I have to question why you would want to? Inevitably, the subby will simply raise his rates to cover the extra cost of delivering the work... Probably adding about 15% of the levy as 'administrative' costs - so you lose.
I don't think that is very sensible unless you have very unusual work / contracts,
Steve
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Rank: Super forum user
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You want your suppliers to reduce their margins in order to subsidise your statutory duty???
Paul,
Don't even think of going there!
My initial reaction would be that this is unethical, most contractors may treat this arrangement as a joke and your safety arrangements with contempt, this could be a barrier to getting the right quantity of specialist labour at critical times within the project programme and even a days delay to your construction programme would cost far more than your organisation would ever gain by levying this induction charge in the first place.
You also run the risk of operatives avoiding induction sessions, signing in under other operatives names and would this arrangement even stand up to a civil challenge?
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Rank: Forum user
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Most construction sites require the operatives to have a CSCS card (or equivalant) which already has to be paid for, I can't believe people want to charge for a Site Induction that is a requirement to work on that site? perhaps I am missing something?
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Rank: Super forum user
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Not another load of rubbish.
As plant hirers (Tower Crane suppliers) our crews are asked to sit through inductions sometimes taking up to 2 hours.
This some weeks entails going onto different sites which are UKCG ran now someone wants to charge for the privelige?
As stated these are CPCS & CSCS qualified people.
Site Specific inductions are what you should be aiming for not the ridiculous time after time videos that have a negative effect on the workforce rather than the positive one they should have.
Regards Alex
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Rank: Super forum user
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more info please so as more detailed comments can be made
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Rank: Super forum user
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When properly done these sorts of charges can act as a good driver to ensure continuity of personnel on site. Too many contractors swap staff on site as regularly as they change underwear!! Yes there are problems to be addressed but these can generally be resolved by permitting an agreed number to be inducted FOC dependent on the nature of the work and time on site.
Bob
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Rank: Super forum user
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I for one have never understood why induction training on site takes so long to deliver. As far as I'm concerned it is the duty of the employee to provide safety training to their employees to ensure they are competent at their work.
When those employees then arrive on site they are competent at what they do therefore only need instruction on the site rules and requirements.
If we list those rules and requirements such as:
Signing in/out in the fire register, Fire procedure, Welfare requirements, PPE requirements, Interface with other workers on site, Accident procedures, RA/MS requirements, Work equipment requirements,
There are ptobably more than that but a presentation to new arrivals covering all the main issues should not take too long.
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Rank: Super forum user
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Chris
I am afraid the HSE would find some disagreement with your abbreviated list
Bob
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Rank: Super forum user
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As it is a legal requirement under the CDM Regs for the PC to provide an induction why would you charge for it? It is akin to charging for PPE - what next?
I also agree that many inductions are far too long winded and unnecessary. Unless there are unusual hazards and risks a site induction should cover basic site requirements eg PPE, welfare facilities, traffic routes and not much more. Why do contractors insist on boring people to death?
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Rank: Forum user
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It is the responsability of the PC to make adequate allowance within their tender submissions. This means that they are obliged to fully price into their submission, adequate percentage to fully undertake their duties as Principal Contractor as stated in CDM Regs. I would suggest that you ask the MD if reasonable allowance has been made within the prelims or if it has been missed from the tender. If tenders have been obtained for these sites from Sc's and Contractors and no such documentation was provided to them or at least identifiable in contracts I would question the legality. Inductions should not take too long or a lot of irrelivent information is being given out that is going in one ear and straight out of the other. I would suggest that your company are probably getting the better deal at the moment as if you try to charge the SC/Contractor will return the charge plus profits & OH. This could potentially make your company more expensive in future tenders in which your company will have to add in at tender stage. Is there a large turnover of staff? Why? 65% of everysite(50) every day sounds massively excessive. What sort of sites? (housing, commercial) It maybe the management of the inductions. The stats. 65% of 50 sites daily is deeply concerning. Incurred costs include for say 100 people per site 3250 people for say 2 hour induction and 240 days of the year @ 48 weeks per year and £30 per hour. I make that £46,800,000. I know my figures are a complete guestimate but you can correct them to a true figure if you wish. But at those above I would suggest you reduce your inductions to 30 mins which in most cases should be more than ample that would equate to £11,700,000 a reduction of 75%. I would say that is some sort of saving. On top of that you would have increased working time meaning the company would be making more out of their prelims. I would also say that 65% of 50 sites daily could be massively reduced. I think your aim should be to reduce costs by making improvements to the management of the inductions from the brief stats you have given. It looks like you could save your company at least 50% -75% of its current induction costs. Charging the SC/Contractor I would avoid that route looks like youve got more money to make from savings.
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Rank: Super forum user
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boblewis wrote:Chris
I am afraid the HSE would find some disagreement with your abbreviated list
Bob Bob please expand
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Rank: Super forum user
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Chris
See para 173 of the acop. The list is rather long.
Brett
There is nothing to prevent a PCs tender costings for induction to take acount of payments by the subcontractor under the contract terms. Prohibitions only apply to PPE in this context and only apply to individual employees and not to organisations.
Bob
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Rank: Forum user
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I'd have to check the regs but I'm pretty sure that you are unable to charge for something required by law and I'm sure that an induction to a site would fall under that requirement as part of the CDM regs. However I could be wrong. I'm not sure how you would sell it to your stakeholders that you charge companies for the 'privilege' of working on your sites. regards yul
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Rank: Super forum user
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boblewis wrote:Chris
See para 173 of the acop. The list is rather long.
Brett
There is nothing to prevent a PCs tender costings for induction to take acount of payments by the subcontractor under the contract terms. Prohibitions only apply to PPE in this context and only apply to individual employees and not to organisations.
Bob Bob, thanks for pointing that out to me. It all depends on what you mean by HSE? I had a meeting last year with two HSE Inspectors and showed them my standard induction training, both agreed it was acceptable. My list above is pointers for the actual training which has to be site specific - I don't have any worries at all about my approach. The para you point out does agree with my sentiment that it does not have to include general safety training so would not take "all day".
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Hi Bob,
Whilst there is nothing to prevent a PC's costings for induction to take account of payments by the subcontractor during their tender submission. That information should then be provided to the sub contractor to enable them to tender costs into their tender submission to the PC. It should then be written into the contract between the PC and SC/Contractor. As a PC myself but on a considerably small scale in comparison to Paul, morally alone I would not be able to pass off these costs as I would make the allowance in my submitted tender. I still believe that the situation Paul is referring to is trying to recoup costs, and would benefit from reviewing the management of the induction because of the Stats he has provided. I am sure his company could benefit from substantial savings. 65% of 50 sites daily. To myself this means that 65 operatives out of 100 are leaving site daily, or they are small individual sites where labour is moved daily. Only Paul can confirm this. Very difficult to make a good judgement on the limited information. I still stick to my guns to not charging SC's and Contractors as it is likely to incur higher costs in the long run, reduce moral between PC & SC/Contractor and in the next instance unless they are working on dayworks they are not likely to be charging for their lost time while undertaking the induction.
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Rank: Super forum user
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Brett
The problem is the gap between the principles and the practice. Many large contracts have specific induction requirements and it is not possible with say a 5 year project period to define clearly all costs. We need to be clear between legal duties and clearly defined tender terms via a contract between two organisations. There can be no question of an unfair contract as these are two legal entities and are free to enter contracts with agreed terms. The illegality would occurr only if the subcontractor passed on the costs to his employees. This is his own breach of HASWEA etc though not the PCs.
I agree that it is very difficult with smaller contracts but it is still a good driver to get subbies to m,aintain the continuity of labout rather than the eternal face swapping game.
Bob
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Rank: Forum user
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Paul
Whilst you have made an interesting posting, may I express concerns about your company charging for delivering what is part of your statutory duties.
As I am sure you know; HASAWA Section 9 "No employer shall levy or permit to be levied on any employee of his any charge in respect of anything done or provided in pursuance of any specific requirement of the relevant statutory provisions".
Your company may be complying with the absolute letter of the law but you must be surely a long way from what is the spirit of the law. It would make an interesting response if the sub-contractors respond by charging a small fee back to your company for supplying Method Statements!
As a PC you are in a unique position to exert a safety influence over others, I cannot see what is gained from charging for inductions.
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Rank: New forum user
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Also, if you did that to me I would invoice your company for the operatives non-productive time spent attending your training.
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Rank: Super forum user
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There is another way to skin the cat!
You could provide a training course for prospective contractors to attend at their cost. The course would be tailored to suit your requirements as Client/PC and aimed at all contractors that wish to tender for work on your projects. Delivered well in advance of the project start date and even prior to the tender stage.
The content would ensure adequate information required for those who end up working on the project, including most of the required Induction content.
Those that do not wish to attend are not invited to tender.
Those that do attend (at their cost) are then considered for work and will receive a more concise induction on attendance on site.
Simple as that ?
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Rank: Forum user
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Bob,
I can appreciate where you are coming from in defence of the PC being able to charge here. What I am not able to except is that the PC can move the goal posts after issuing the SC/Contractor the work/Contract. It again goes back to a management issue at the point of tender between the PC and SC/Contractor. It is not in the interest (namely financially) of the anyone to keep changing staff on any size project. If like so many have said they would price into their tender or countercharge for training. We are currently in a market where large PC's have reduced their prelims to a ludicrously low percentage, and then try to recoup. I personally do not see it as cost effective to make these charges for any party. Again any form of training should be included within the preliminaries. From what I can gather you are predominantly refering to the Principle Contractor/Client Contract (appoligise if I am wrong), and not the contract that is entered between PC/SC/Contractor. As steve-IOM very few Sc's/Contractors charge for RA's and Method Statements. This opens up a whole barrel of charges that the sub contractors could pass over to the PC again in the long run to the client. Yes the PC could pass on the costs but expect to be countercharged and possibly charged for other administration charges, or an increase in hourly rates to cover the additional costs. For me as I said above induction format/management could be the main issue here according to the stats., and if it's not it probably goes back to the original tender/s submission. The PC should also look at why Sc's/Contractors are changing their staff so frequently by entering into dialogue with their suppliers, or is the PC trying to renegotiate contracts part way through.
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Rank: Super forum user
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Brett
I am totally with you over making requirements clear at tender and not once prices are accepted. SteveIOM has fallen into the problem that H&S law applies to employer and employee relationships generally - it does not as I have said involve employer - employer relationships expressed under contract. We need to be very clear of the boundaries in all of this. I have done both in the past and charging can work as long as th contractual relationship is open. It is not about a money saving big stick!
Bob
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Boblewis
I think there is a section of HASAWA somewhere that applies to "employers and other persons", I would be interested in the section that exempts "relationships under contract" or any criminal case law that you know of.
regards
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Rank: New forum user
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To Paul R
Induction onto a site or into any job is a statutory requirement - your employer should be made aware of their Duty of Care that is also a Common Law duty. Charging for any such induction is not permissible and would be frowned upon.
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Just a few weeks ago i had to sit through 3 separate site inductions with the same principle contractor (2 in Liverpool & 1 in hull) i explained after the first one that i had already been inducted on one of their sites only to be informed that i had to do the full induction again.
I had to sit through the same induction almost word for word on all 3 sites with the same videos!
When i worked on the petro chemical sites some years ago we were given an initial half day induction by the company and we were given an induction card (white card) which the person (usually the plant engineer) doing the induction signed and dated and i you also had to sign and date. when you moved to another site as long as you presented your induction card all you had to do was sit through the site specific induction which took no longer than 20 minutes.
this worked really well with no issues as long as you had your white card, if you didnt have your white card then you had to do the full induction again.
perhaps the UKCG need to look at such a system to streamline what has become an absolute over the top exercise.
as for charging for the induction that just seems like another example of subby bashing by the principle contractors who are already screwing their subbys to the floor.
AL W
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Rank: Super forum user
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The section 9 duty is towards employees. ou cannot stretch it to employer/employer brelationships.
Bob
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Rank: Super forum user
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The section 9 duty is towards employees. ou cannot stretch it to employer/employer brelationships.
Bob
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Rank: Super forum user
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I think my spelling has gone to sleep!!!
Bob
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Bob, I think you have been in the drink ;-)
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Rank: Super forum user
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Ray
Not even allowed a single malt nowadays owing to painkillers being used constantly.
Some people are as bad though trying to stratch HASAWA to employer employer relationships.
Bob
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Rank: Super forum user
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I have to agree with the vast majority of the posts on this topic and say that the proposal to charge for inductions is going to have potentially serious consequences with regard to your duties under common law as one poster has said, increased costs as another and from the HSE as well.
Take the advice from here and don't even attempt to implement the proposal.
Regards,
Ciaran
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Rank: Super forum user
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Sorry but I just couldn't resist any longer. Any suggestion to "charge" for induction training shows a complete misunderstanding of what induction should be about, why it is needed and who has duty to provide it. I am sure you know that Paul but maybe you simply need to say it to the managers who are suggesting this change.
As one poster said "if I know you are going to charge me for it then I will simply have to factor that into my cost analysis when tendering". No cost saving at all, just hides the cost in the tender so why bother to make it more complicated than it already has become.
A short historical episode follows. Opening scene: An office in a large oil refinery in 1987 or thereabouts.
Business suit No:1 "This site induction stuff is becoming an absolute nightmare. We now have 3 full time staff just to keep abreast of it. We have to find a better way to do this."
Business Suit No:2 "Why cant we have a sort of card scheme so that once a contractor has been fully inducted in our ways then they only have to do the local stuff when they go to other of our sites. That could then be done in just a few minutes."
Business Suit 1: "Good idea that! Could we make it a "refinery ticket" so that we can accept one ticket as long as they have attended a "recognised oil" induction, that would make it really worthwhile!" I bet ****** and **** would agree to that as I know they are struggling with this as well.
Business Suit 2: OK Let's do that then. Do any systems exists that we could use or help develop? Are the CITB going to be any help in this?
Business suit 1: Well maybe but we would have to be careful that this doesn't turn into some sort of competency assurance. It has to be about simply knowing that they understand our basic safety rules; we are not teaching them safety or how to work safely in their trades.
Funny old world isn't it, the way things develop and morph over the years?
p48
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Rank: Forum user
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Many thanks for the replies, I agree that to charge or levy for inductions would be wrong and feel the way forward would be to manage the induction process better. We currently have a standard induction with the ability to add specific info throughout and takes no more than 30 minutes including filling in the required form etc.
Again many thanks and it only confirmed what I feel is the way forward, now just have to convince management, oh well best foot forward
PaulR
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Rank: Super forum user
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Paul, where angels fear to tread!
Good luck
p48
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