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

2. 2 Original Remit George Dunlop Claim 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

3. 3 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 www.hillintl.com 3 www.jrknowles.com Original Recommendations

4. 4 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) www.hillintl.com 4 www.jrknowles.com Original Recommendations

5. 5 www.hillintl.com 5 www.jrknowles.com Approved Contractors Consultation on Potential Revision Basis for Revisions Reviews findings Review consultation Sub-group meetings Industry changes on IoM Treasury meeting Advice from all interested parties

6. 6 Format Proposed Key Issues Open discussion Written response on questionnaire Sub-Group Analysis Draft Proposal www.hillintl.com 6 www.jrknowles.com Approved Contractors

7. 7 Issue 1 Why have a List of Contractors? Majority of industry and Treasury Audit belief there is benefit and need Potential “protection” for Government departments and domestic clients It may encourage greater “professionalism” within industry It should improve “sustainability of industry” www.hillintl.com 7 www.jrknowles.com Approved Contractors

8. 8 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 www.hillintl.com 8 www.jrknowles.com Approved Contractors

9. 9 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. www.hillintl.com 9 www.jrknowles.com Approved Contractors

10. 10 Issue 2 Title 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) www.hillintl.com 10 www.jrknowles.com Approved Contractors

11. 11 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 www.hillintl.com 11 www.jrknowles.com Approved Contractors

12. 12 Issue 4 Who supplies information and what is on ACC system ? 1.Organisations submit details annually on up-date principle 2.Keyword search facility for ACC users, type and scope of services 3.Primary organisation information as applicable www.hillintl.com 12 www.jrknowles.com Approved Contractors

13. 13 Issue 5 Who checks or gives warranty to ACC register 1.In principle the “organisations” are trusted to provide accurate details 2.The appropriate Government department should warrant action on fiscal / legal / VAT type complaints 3.The Employers Federation warrants / monitors performance details (ManxMark) www.hillintl.com 13 www.jrknowles.com Approved Contractors

14. 14 Issue 6 How should the ACC be coded / classified? 1.According to “own” keyword description and projected size of project 2.Potentially three basic categories: Main Contractors, any size Specialist main &/or Sub-contractor Project related www.hillintl.com 14 www.jrknowles.com Approved Contractors

15. 15 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. www.hillintl.com 15 www.jrknowles.com Approved Contractors

16. 16 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 www.hillintl.com 16 www.jrknowles.com Approved Contractors

17. 17 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) www.hillintl.com 17 www.jrknowles.com Approved Contractors

18. 18 Issue 8 How should ACC fit with other Review Recommendations? 3Manx Fiscal Benefit (MFB), if ACC is comprehensive and with correct categories this should follow, but is it desirable? 4Training issues, in review, but changing. www.hillintl.com 18 www.jrknowles.com Approved Contractors

19. 19 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. www.hillintl.com 19 www.jrknowles.com Approved Contractors

20. 20 Thanks for Listing and Contributing George Dunlop Further comment welcomed on georgedunlop@hillintl.comgeorgedunlop@hillintl.com or 0141 779 8130 www.hillintl.com 20 www.jrknowles.com Approved Contractors