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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