Constructing Excellence Spring Series - CDM Regulations

Constructing Excellence Spring Series #ceyh2016 Wednesday 24th February 2016 Addleshaw Goddard LLP

Tom Oulton Chair of Constructing Excellence in Yorkshire & Humber

Martin Cook Director Turner & Townsend Š Turner & Townsend Project Management Limited. This content is for general information purposes only and does not purport to constitute professional advice. We do not make any representation or give any warranty, express or implied, and shall not be liable for any losses or damages whatsoever, arising from reliance on information contained in this document.

It must not be made available or copied or otherwise quoted or referred to in whole or in part in any way, including orally, to any other party without our express written permission and we accept no liability of whatsoever nature for any use by any other party.

CDM 2015 – Role of the Client An opportunity to improve Construction Health, Safety and Wellbeing

Š Turner & Townsend plc July 2014

making the difference

Agenda

Item

Topic

1

CDM 2015 – Key Changes

2

CDM 2015 – Structure

3

CDM 2015 – Client Statutory Duties

4

Client’s Role – How to Discharge Duties

5

CDM 2015 - Summary

5

CDM 2015 – Key Changes

making the difference

CDM 2015 – Key Changes

■

■

New duty holder Principal Designer Enhanced Client duties

Introduces

■

CDM Coordinator

■

Competency criteria

■

Link between HSE notification and statutory appointments

■

Pre construction and construction phases

Removes

CDM 2015 ■

Scope now includes ■

Domestic Clients

■

Small Works

■

Maintenance Works

Extends

Separates

7

CDM 2015 – Structure

making the difference

CDM 2015 - Structure There are five duty holders

Effective Risk / Performance Management delivered through Management Arrangements

Construction Risk

Principal Designer

Design Risk

Client

Designers

Principal Contractor

Contractors

Operation and Maintenance Risk 9

CDM 2015 – Client Statutory Duties

making the difference

CDM 2015 – Statutory Duties The Client is viewed as the ‘controlling mind’ as their decisions and approach to CDM 2015 have a significant impact on health, safety and welfare.

Notification to the HSE (F10)

Provision of information

Appointment of Duty holders (Principal Designer / Principal Contractors)

Client

Management Arrangements

Start of Construction Phase – Construction Phase Plan

Health and Safety File

11

Client Role – How to Discharge Duties

making the difference

Client Role – How to Discharge Duties Do you have available Competence – Internal?

Competence = Skills, Knowledge and Experience

Principal Designer

Effective Risk / Performance Management delivered through Management Arrangements

Designers

Construction Risk

Client

Design Risk

■

Principal Contractor

Contractors

Operation and Maintenance Risk

13

Client Role – How to Discharge Duties Do you have available Competence – Internal vs External?

Client Advisor

A Client cannot delegate accountability only responsibility

Principal Designer

Effective Risk / Performance Management delivered through Management Arrangements

Designers

Construction Risk

■

An external Client Advisor – Not a Statutory Appointment

Design Risk

■

Client

Principal Contractor

Contractors

Operation and Maintenance Risk 14

Client Role – How to Discharge Duties Statutory Appointment Principal Designer

The Principal Designer is a key role that is fundamental to project success

Competence – Skills, Knowledge and Experience

■

They should support the Client and work closely with the design team to bring about good design hazard management

Principal Designer

Effective Risk / Performance Management delivered through Management Arrangements

Designers

Construction Risk

■

Client

Design Risk

■

Principal Contractor

Contractors

Operation and Maintenance Risk 15

Who is the Principal Designer?

Who can be a Principal Designer?

The definition of the Principal Designer is the ‘designer’ in control of the pre-construction phase ……” i.e. the Principal Designer must be a “designer”.

Definition of a Designer The definition of a Designer is ‘any person (including a client, contractor or other person referred to in these Regulations) who in the course or furtherance of a business’ – a) prepares or modifies a design; or b) arranges for or instructs any person under their control to do so

Note: the definition of a designer does not require the preparation or modification of a design – through the use of the word “or” rather than “and” it allows for the management of the design function.

16

Client Role – How to Discharge Duties Project Management Arrangements

Client

Principal Designer

Effective Risk / Performance Management delivered through Management Arrangements

Designers

Construction Risk

The framework provided by CDM 2015 assists in the delivery of solutions that improve project / programme health, safety and wellbeing, achieved through the creation of management arrangements and supporting assurance process that together will effectively control risk (proportionally) and drive continual improvement.

Design Risk

â–

Principal Contractor

Contractors

Operation and Maintenance Risk

17

Client Role – How to Discharge Duties Project Management Arrangements CDM 2015 Delivery Model

■

■ ■

Effective project management arrangements drive performance / control risk HSG65 – Delivery model utilising a Plan, Do Check Act process Project Managers – Not a statutory CDM Appointment they will assist you deliver your management arrangements

Planning for Delivery (Plan) HSW Charter HSW Strategy / Delivery Plan Risk Profile

Implementing the Plan (Do) Risk Assessment Minimum Standards Knowledge Management

Monitoring Delivery (Check) Performance Measurement Performance Reporting

Continual Improvement (Act) Performance Analysis Improvement Initiative

18

Client Role – How to Discharge Duties Project Management Arrangements

■

Consider underpinning project management arrangements using ‘Five enablers to success’

Ability to Deliver Exceptional Define Exceptional Visible and proactive management, drive and commitment.

Leadership

Understanding Exceptional Define the mission, the standards, objectives and benefits.

Expectation

Feel empowered through increased skills & understanding of best practice

Knowledge

Share and discuss Exceptional Make Safety Personal and place it on your agenda and respond to issues with positive actions & feedback

Engagement

Celebrate achieving Exceptional Inspiring commitment and embed best practice in our culture.

Incentive

19

Client Role – How to Discharge Duties Project Management Arrangements CDM 2015 Delivery Model

1. Strategic HSW planning

2. HSW risk management / performance delivery

Planning for Delivery (Plan) HSW Charter HSW Strategy / Delivery Plan Risk Profile

Implementing the Plan (Do) Risk Assessment Minimum Standards Knowledge Management

Execution Plan

Project Management

Assurance

Improvement

Monitoring Delivery (Check) Performance Measurement Performance Reporting

Continual Improvement (Act) Performance Analysis Improvement Initiative Leadership

Expectation

Knowledge

Engagement

Incentive

20

Client Role – How to Discharge Duties Project Management Arrangements CDM 2015 Delivery Model

1. Strategic HSW planning

2. HSW risk management / performance delivery

Planning for Delivery (Plan) HSW Charter HSW Strategy / Delivery Plan Risk Profile

Implementing the Plan (Do)

Monitoring Delivery (Check)

 Leadership Project/Programme policy objectives, vision and goals  Leadership Project/Programme structure, roles and responsibilities  Expectation -Design / Construction Management arrangements - Minimum Standards  Knowledge - Competence (Skills / Knowledge & Experience) requirements and training  Engagement Communications Plan – Interfaces / Handover  Incentive - Assurance process – Define KPIs, tracking and reporting

Project Management

Assurance

Improvement

Continual Improvement (Act)

Leadership

Expectation

Knowledge

Engagement

Incentive

21

Client Role – How to Discharge Duties Project Management Arrangements CDM 2015 Delivery Model

1. Strategic HSW planning

2. HSW risk management / performance delivery

Planning for Delivery (Plan)

Implementing the Plan (Do) Risk Assessment Minimum Standards Knowledge Management

Execution Plan

Monitoring Delivery (Check)

• Leadership  Visible and Proactive Advise – Risk Assessment • Knowledge Management  Competency / Induction  Engagement  Effective Safety Discussions (Toolbox Talks)  Expectation  Minimum Standards – Design / Contractor Site HSW Management

Assurance

Improvement

Continual Improvement (Act)

Leadership

Expectation

Knowledge

Engagement

Incentive

22

Client Role – How to Discharge Duties Project Management Arrangements CDM 2015 Delivery Model

1. Strategic HSW planning

2. HSW risk management / performance delivery

Planning for Delivery (Plan)

Implementing the Plan (Do) Execution Plan

Project Management

Monitoring Delivery (Check) Performance Measurement Performance Reporting

Continual Improvement (Act)

Leadership

Expectation

 HSW Data Collection (Audit/Inspection)  Focus on Management Inputs (Leading Indicators)  Principal Designer / Contractor Performance  HSW Reporting  IT Enabled / Dashboard / Consistent / Transparent  Accident / Incident / Near Miss investigation  Root Cause Identification (Behaviour / System)

Knowledge

Engagement

Improvement

Incentive

23

Client Role – How to Discharge Duties Project Management Arrangements CDM 2015 Delivery Model

1. Strategic HSW planning

2. HSW risk management / performance delivery

Planning for Delivery (Plan)

Implementing the Plan (Do) Execution Plan

Project Management

Monitoring Delivery (Check)

Assurance

 HSW Data Analysis  New Initiatives / Targeted Intervention  Communication  Lessons Learnt / Knowledge Share (SharePoint)  Culture Enhancement  Behavioural Safety Campaigns  Wellbeing  Campaigns / Health Promotion

Continual Improvement (Act) Performance Analysis Improvement Initiative Leadership

Expectation

Knowledge

Engagement

Incentive

24

Client Role – How to Discharge Duties Project Management Arrangements CDM 2015 Delivery Model

1. Strategic HSW planning

2. HSW risk management / performance delivery

Planning for Delivery (Plan) HSW Charter HSW Strategy / Delivery Plan Risk Profile

Implementing the Plan (Do) Risk Assessment Minimum Standards Knowledge Management

Execution Plan

Project Management

Assurance

Improvement

Monitoring Delivery (Check) Performance Measurement Performance Reporting

Continual Improvement (Act) Performance Analysis Improvement Initiative Leadership

Expectation

Knowledge

Engagement

Incentive

25

CDM 2015 – Summary

making the difference

CDM 2015 - Summary

■

A Client cannot delegate accountability only responsibility

■

Competence – Internal or External?

■

Appointments = Skills, Knowledge & Experience

■

Effective management arrangements drive performance ‘Five enablers to success’

■

Client

Principal Designer

HSG65 – Delivery model utilising a Plan, Do Check Act process

Effective Risk / Performance Management delivered through Management Arrangements

Designers

Construction Risk

Client – ‘Controlling Mind’

Design Risk

■

Principal Contractor

Contractors

Operation and Maintenance Risk

27

Katie Milner Associate Addleshaw Goddard LLP

The Construction (Design and Management) Regulations 2015 (The CDM Regulations) Katie Milner

2015 – The Main Changes from the 2007 Regulations

► Principal Designer role replaces the CDM coordinator ► The CDM 2015 further enhances the role of the client (key health and safety responsibility on the client) ► Responsibility to notify is now on the client

30

Client Duties â–ş Making Suitable Arrangements 1. To ensure construction works are carried out without risk to health and safety of any person affected by the project (ongoing obligation) 2. Site welfare requirements (toilets, facilities, drinking water etc.)

3. Appointment of Principal Designer and Principal Contractor (in writing before the construction phase begins) 4. Notify the HSE (30 working days and more than 20 workers on site)

31

Client Duties (Cont.) ► Providing pre-construction information to every contractor and designer ► Construction phase plan is drawn up before construction works begin (Principal Contractor/Principal Designer) ► Ensuring H&S file prepared ► Ensuring Principal Designer and the Principal Contractor comply with their duties ► Providing H&S file to the person acquiring the development

32

Client Duties (Cont.) â–ş General Duties: 1. Principal Designer/Principal Contractor must have skills, knowledge and experience 2. Cooperation with all others 3. Reporting danger 4. Provision of information

33

Can a CDM Coordinator be appointed as a Principal Designer?

â–ş A client appointing a Principal Designer must take reasonable steps to satisfy themselves that the designer has the skills, knowledge and experience necessary to fulfil their role â–ş CDM coordinator not necessarily qualified as a Principal Designer

34

Issues with D&B Projects ► Client alone may appoint the Principal Designer - but what about when the design team is novated? ► Appoint a Principal Designer for the pre-construction phase then have the main contractor as Principal Designer and Principal Contractor? ► Sub-contract to a sub-consultant? ► Contractor carry out the Principal Designer role in house? ► Appointment of the Architect as Principal Designer – Risk: once novated this may contravene the Regulations as the Principal Designer would have no direct relationship with the client 35

Sentencing

► HSE will generally enforce the regulations – breaching them is a criminal offence – prosecution under the Health and Safety at Work Act 1974 ► Directors/senior managers can be prosecuted in their individual capacity (including prison sentences) ► Fines - criticism for leniency (new sentencing guidelines 1 February 2016) 36

New Sentencing Guidelines – 1 February 2016 ► Tougher penalties on companies ► Higher fines to have a “real economic impact” on the organisation ► Individuals are also covered by the guidelines (guidance given as to the length of custodial sentences) ► Medium sized companies: H&S offence = £1,000-£4m fine; Corporate Manslaughter offence = £1.2m-£7.5m ► Fee for Intervention Scheme

37

QUESTIONS?

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Questions?

Tom Oulton Chair of Constructing Excellence in Yorkshire & Humber

Constructing Excellence in Yorkshire and Humber Awards 2016 Closing Date for entries - Friday 29th April 2016 Shortlist Announced – Friday 20th May 2016 Gala Awards Ceremony Evening – Friday 1st July 2016 http://ckegroup.org/cexcellenceyh/ceyh-awards-2016/ ckeevents@leedsbeckett.ac.uk

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