Construction (Design and Management) Regulations 2007

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1 MEETING Finance, Procurement and Property Committee AGENDA ITEM 14 MEETING DATE 9 th July 2007 DOCUMENT NUMBER FEP 1052 SUBJECT REPORT Construction (Design and Management) Regulations 2007 (12/06/07) by the Head of Property SUMMARY This report informs members of the key changes introduced by the Construction (Design and Management) Regulations (CDM) 2007 and the effects of these Regulations upon construction work undertaken by the Authority. Recommendations That the report be received. BACKGROUND 1. The revised Construction (Design and Management) (CDM) Regulations 2007 (Regulations (07) came into force with effect from 6 th April 2007 and apply to all construction works (as defined in the Regulations) undertaken by the Authority. The CDM Regulations (07) supersede the 1994 CDM Regulations. 2. The Regulations (07) primarily affect the Authority in the role of Client. The Client under the Regulations (07) is defined as an organisation or individual for whom a construction project is carried out. Clients have substantial influence together with contractual control and their decisions and approach principally determine the time, money and resources for projects. They also determine the composition and competence of the project team, when they are appointed and who does what as well as how effectively they work together. They also influence whether the team have the necessary information about the site and any existing structures and the arrangements for managing and co-ordinating the work of the team. However the Authority could in certain circumstances also take on the role of a Contractor through works undertaken directly by its employees, or even CDM Co-ordinator. Other duty holder roles have also been redefined and enlarged including the newly designated CDM Co-ordinator (previously Planning Supervisor). 1

2 3. In the period leading up to the 6 th April 2007 officers in the Property Department were monitoring the draft Regulations issued by the Health and Safety Commission (HSC) and have been working to prepare for the introduction of the Regulations (07). 4. The Approved Code of Practice (ACOP) publication from the HSC, which details the approved Regulations (07) and provides guidance on compliance, was made available only days before the coming into force of the Regulations (07). Officers in the Property Department have been coordinating the updating of the internal procedures such that the new requirements of the Regulations (07) are incorporated. 5. The preparation work included the amendments to the in-house Project Manual and the production of a Property Manual, these documents define the procedures to be followed by staff. In addition a seminar was arranged for Property staff in February This was facilitated by a construction specialist..another seminar is being organised for the in-house staff to set out the legal framework of the Regulations (07). 6. The CDM Co-ordinator (CDM-C) is a new and enlarged role (compared with the previous role of Planning Supervisor - under the 1994 Regulations) and this function has been undertaken on behalf of the Authority by the health and safety section of the appointed term consultants. CONSTRUCTION WORK 7. Construction work is defined as the carrying out of any building, civil engineering or engineering construction work and includes: the installation, commissioning, maintenance, repair or removal of mechanical, electrical, gas, compressed air, hydraulic, telecommunications, computer or similar services which are normally fixed within or to a structure. The majority of buildings related projects undertaken by the Property Department will be subject to the Regulations (07). Due to the wide definition of construction, some works managed or undertaken by other Departments could also be subject to the Regulations (07) e.g. works undertaken by the Information Technology (IT) Department. CLIENT DUTIES UNDER THE REGULATIONS 8. Construction projects subject to the Regulations (07) are classified as notifiable or non-notifiable. 9. Notifiable projects are defined as projects over 30 days in duration or requiring more than 500 person days of work. These projects must be notified to the Health and Safety Executive (HSE) and are subject to more requirements of the Regulations (07) than non-notifiable projects. 10. Non-notifiable projects do not have to be notified but are still subject to certain requirements of the Regulations (07). Under the previous 1994 Regulations, only works where more than 5 persons were working at any time were subject to the 1994 regulations. This lower limit has been removed and all construction work is now subject to the Regulations (07). 11. The summary of Client duties is set out at Appendix 1. The Regulations (07) require more to be done by Clients e.g. the provision of pre-construction information, establishment and monitoring of management arrangements including the duty to ensure that adequate welfare facilities are in place. 12. For non-notifiable (non complex) projects these additional duties may be undertaken by Authority staff. It is important in carrying out these duties to provide staff with further training and clarification 2

3 of the Regulations (07). However in some instances it may be necessary to engage an external CDM-C for the more complex non-notifiable projects. 13. For notifiable projects it is proposed to continue with the present strategy whereby the service is procured through the existing term consultants (whose contracts include for them to undertake the role of Planning Supervisor under the 1994 CDM Regulations) in assisting the Authority to meet the additional Client requirements of the Regulations (07). 14. The Authority however remains liable for meeting all Client duties. The option under the 1994 Regulations of transferring liability for Client duties through the appointment of a Client Agent has been withdrawn in the Regulations (07). 15. The Regulations (07) also require Clients to provide pre-construction information. Such information would include all relevant information relating to a site (e.g. record drawings, the presence of asbestos at the premises, wayleaves etc.) where a project is to be undertaken. Until such information as is considered adequate by the duty holders is provided the project cannot start. 16. The new legislation has put more responsibility on the Client to provide accurate and timely information about the building prior to the start of a project. In order to minimise delays to project starts and to meet the requirements of providing sufficient information it is necessary to streamline and make available electronically in an integrated form the range of Property files currently held in a dispersed hard copy format. An integrated file for each of the Authority premises titled the Premises Health and Safety File is to be produced. 17. Much work has already been undertaken by the Property Department in improving the premises information held. Ongoing asbestos surveys and other completed surveys have been completed to identify hazards at Authority premises and remedial work programmes are underway to mitigate against them. However much of this information is in hard copy format e.g. Premises Log Books at stations. Conversion of this information into electronic format would assist in meeting the requirements of the Regulations (07). Although dedicated internal resources to undertake a mass conversion of currently held hard copy information does not exist, the available existing internal resource will be used to undertake the conversion to a Premises Health and Safety File in an incremental manner. 18. Clients must also ensure there is sufficient time and resources for all stages of a project and must permit any reasonable requirement to enable key health and safety requirements to be met by all the duty holders under the Regulations (07). 19. Clients must check the resources and competence of all appointees. The use of the term consultants will assist to reduce the additional resource requirements within the Authority to assess competence under the Regulations (07) since these have been pre-assessed as part of their inclusion on the short list of tenderers. However any proposed CDM-C not from the term consultants will need to be assessed for competence before appointment, as will the term consultants if engaged for specialist works which require skills or expertise not adequately pre assessed. 3

4 CDM CO ORDINATOR DUTIES 20. The role of CDM Co-ordinator (CDM-C) is a new and enlarged role under the Regulations (07) and has superseded the role of Planning Supervisor (under the 1994 Regulations). If a CDM-C is not appointed then the Client is the CDM-C. 21. The role of Planning Supervisor was competitively tendered as part of the process leading to the appointment of the term consultants. 22. The enlarged role of the CDM-C has required the Authority to seek to modify the specific element of the contracts with the term consultants for all duties and responsibilities over and above those previously obtained for acting in the role of Planning Supervisor. 23. An indicative assessment of the additional fees likely to be incurred as a result of the new role of CDM-C is shown in the Part II report also on today s agenda. The fees range according to project value (the higher the contract value the smaller is the percentage increase). OTHER ADDITIONAL REQUIREMENTS UNDER THE REGULATIONS 24. Under the 1994 Regulations the only projects that were affected involved demolition, or work involving more than 5 persons. The implication of this change for the Authority with the new Regulations (07) is that many smaller revenue and capital works, not previously subject to the 1994 Regulations, are now subject to the Regulations (07). 25. More prescriptive pre-construction information is defined in the Regulations (07). Where relevant information is not readily available then the Authority will need to commission additional surveys in order to obtain sufficient details e.g. through a pre-project asbestos survey in a specific location that was not previously deemed necessary in the periodic asbestos surveys. This requirement applies to all construction projects. 26. The welfare provisions for all construction projects (notifiable and non notifiable) are now more prescriptive. The Authority has traditionally provided temporary replacement welfare facilities for its own staff when these are temporarily out of commission during the works. FUNDING 27. The additional expenditure falling within the 2007/08 financial year will be closely monitored and if it cannot be contained within existing approved budgets will be reported in the quarterly monitoring together with any variances which might require funding. Effect upon future years will be reflected in project costs in the capital programme and in the normal course of budget preparation. 28. Attached at Appendix A is an indicative assessment from one consultant of the likely additional time involved in complying with these regulations. ENVIRONMENTAL IMPACT 29. A Sustainable Development (Environmental) Impact Assessment for this Report has been undertaken and no adverse environmental impacts have been identified. The more prescriptive pre construction information requirements detailed in the Regulations (07) and the additional duty to manage information flows between all the duty holders involved in construction work will mitigate against environmental risks e.g. the accidental disturbance of asbestos containing materials. 4

5 CONCLUSIONS 30. Considerable work has been undertaken in preparation for the introduction of the Regulations (07) and the Authority is well placed to enable compliance in a cost effective manner. The amendments required to internal procedures will where necessary be coordinated in consultation with the Health and Safety and Legal Departments. Officers will be required to comply with the ACOP and Property departmental procedures in order to ensure the Authority s duties under Regulations (07) are discharged. 31. An indication of the financial impact of the additional consultancy fees is set out in appendix 2. It is also expected that the additional pre contract surveys and some additional welfare provision costs may be an even greater burden on construction project costs in 2007/8 and thereafter. It is impossible to accurately predict these costs at this stage, but it is expected that the cost of some of the larger current Minor Improvement projects may tip them over the 100,000 and accordingly will be subject to Committee approval. LOCAL GOVERNMENT (ACCESS TO INFORMATION) ACT 1985 List of background documents Proper Officer: Head of Property Contact Officer: Jim Evans FREEDOM OF INFORMATION ACT 2000 LFEPA Publication Scheme This document appears in the publication scheme under: It also appears in the publication scheme under: Information Access Team Contact: Category: Topic: Class: Category: Topic: Class: Management arrangements and decision making Authority, committee and panel meetings Committee agendas, minutes, reports and decisions Management arrangements and decision making Property Management and location of buildings Location of fire station in London 5

6 APPENDIX 1 SUMMARY OF CLIENT DUTIES UNDER THE CDM REGULATIONS 2007 Client Duties All construction projects Check competence and resources of all appointees Ensure there are suitable management arrangements for the project including welfare facilities Allow sufficient time and resources for all stages of the project Provide pre-construction information to designers and contractors Additional duties for notifiable projects Appoint CDM Co-ordinator* Appoint Principal Contractor* Make sure that construction work does not commence unless there are suitable : -welfare facilities -construction phase plan in place Provide information relating to the health and safety file to the CDM Co-ordinator Retain and provide access to the health and safety file *( there must be a CDM Co-ordinator and a Principal Contractor until the end of the construction phase) 1

7 APPENDIX 2 The following table sets out a detailed breakdown of the additional duties emanating from the Regulations (07) and gives an indication of the additional time needed for the consultant to provide the defined services and the impact it has on the contractual fees. CDM-C services as Regulation 20 Comments on CDM-C services compared with Planning Supervisor Services Assessment of additional time required for CDM-C services for projects between k in value Assessment of additional time required for CDM-C services for projects above 3.8m in value CDM Co-ordinators must a) Give suitable and sufficient advice and assistance to clients to help them comply with the duties, in particular: Additional responsibility under new Regulations but no extra resources needed for LFEPA. i)the duty to appoint competent designers and contractors and ii) the duty to ensure that adequate arrangements are in place for managing the project Additional responsibility under new Regulations but no extra resources needed for LFEPA. b) notify HSE about the project Additional information needed on new form for H&S Executive and signature required from Client hours 1 hour c) co-ordinate design work, planning and other preparation for construction where relevant to health and safety. Amendment in new Regulations to focus on key issues. Under review particularly with respect to larger projects. TBA TBA d) identify and collect the preconstruction information and advise the client if surveys need to be commissioned to fill significant gaps. Additional responsibility to recommend surveys to obtain required information. 2.0 hours 2

8 CDM-C services as Regulation 20 Comments on CDM-C services compared with Planning Supervisor Services Assessment of additional time required for CDM-C services for projects between k in value Assessment of additional time required for CDM-C services for projects above 3.8m in value e) promptly advise in a convenient form to those involved with the design of the structure and to every contractor (including the Principal Contractor) who may be or has been appointed by the client, such parts of the pre-construction information which are relevant to each. f) manage the flow of health and safety information between client, designers and contractors. g) advise the client on the suitability of the initial construction phase plan and the arrangements made to ensure the welfare facilities are on site from the start; h) produce or update a relevant, user friendly health and safety file suitable for future use at the end of the construction phase. Additional obligations to distribute H&S related information and extra associated costs of expenses(printing, copying, postage) No existing obligation to manage information flow. No existing requirement for inspection of welfare facilities. Extra fees may to re-visits following non compliance. New requirements to produce although document less onerous hours 1 hour 2 hours 30 hours 0. 5 hours 1 hour 0. 5 hours 6 hours Proposed revised fee including expenses previous fee in brackets 1.5% (1%) * Note 0.28% (0.2%) *Note *Notes: 1. In between the range of project values shown in the last two columns there are other project values as specified in the term consultancy contracts. 2. The indicative fee pertains to one of the term consultants. Discussions are ongoing with the others. FEP1052 FEP 1052 fep1052 fep

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