scruttonbland.co.uk
PROPERTY AND CONSTRUCTION
VAT and Land Development
Getting Your Payment Application Right
Safeguard Your Machinery
Contents 3 Welcome to the Summer edition of our Property and Construction newsletter
10 VAT and Land Development
12 Safeguard Your Equipment: Preventing the Theft of Contractors’ Plant
4 Building a Nest
7 VAT Threshold Demystified: Your Guide to Registration
14 Does Your Payment Application Stand Up?
8 Safeguarding Your Construction Business with Key Person Insurance
16 Meet the Team
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Welcome to the Summer edition of our Property and Construction newsletter
Welcome to the Summer edition of our Property and Construction newsletter. As ever, our team at Scrutton Bland are here to help you navigate the constantly changing landscape, keep you informed about new regulations and assist you with all aspects of tax, accounting and insurance which relate to this sector.
S ince our last newsletter we’ve seen Rishi Sunak taking the reins of government and a concerted effort from his team to get inflation under control. The war in the Ukraine goes on, with serious economic consequences as the cost of materials and labour continues to rise, added to crippling energy prices – all of which mean that developers, contractors and building workers have been squeezed from both ends when it comes to managing their projects. Our aim with this newsletter is to help you to address some of these challenges, through offering professional advice to assist in the financial management of your construction business. We always listen to the current points raised by our clients and as a result Daniel May, VAT Manager, responds to questions we have received relating to the tax implications for property developers who are now seeking to dispose of land previously banked for future development. We are also very mindful of the problems many of our clients encounter with managing their cash flow. One important strategy is to raise a payment application rather than an invoice, to maintain a constant flow of cash into the business. On page 14, we explain how payment applications work, as well as explaining some of the options for resolving disagreements.
We’re also pleased to have the expertise of Gary Stannard, Insurance Director, who on page 12 examines the way that the high value and portability of contractors’ plant has made it an attractive target for criminals. He suggests some of the measures that can mitigate the risk of theft, and also looks at the how using a knowledgeable broker to get the right insurance policy can save money in the long run. We love to hear about the projects our clients have undertaken, and Nest Development in Woodbridge has rapidly established itself as an award-winning property company, designing and constructing individual homes across East Anglia. We spoke to Nick Glendinning, founder and CEO of Nest Development about the way his business has developed, and how they have managed to come through the upheavals of the past few years. Read more about what the business has been up to on page 4. Finally we’re delighted to announce that Scrutton Bland has just opened a new office in Bury St Edmunds. We’ve been operating across East Anglia for over one hundred years and recognise the need for many of our clients in the west of the region to be able to visit us in a location that’s easier for them to get to. Our new office is located in The Long Barn at Fornham Business Court, Fornham St Martin, Bury St Edmunds IP31 1SL. It is open from 9:00am to 5:00pm, Monday to Friday, so please come and visit us if you are passing!
We hope that you enjoy this edition of the Property and Construction Newsletter, and if you want to discuss any of the points raised or alternatively if you’d like to see any specific topics covered in future issues, please get in touch with your usual Scrutton Bland contact.
Ben Cussons Business Advisory Associate Partner
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Building a Nest Founded in Suffolk in 2012 as a design-led house builder and developer, Nest Development has rapidly established itself as an award-winning property company, designing and constructing individual homes across East Anglia. We spoke to Nick Glendinning, founder and CEO of Nest Development about the way his business has developed, and how they have managed to come through the upheavals of the past few years.
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How did you get into property development? Nick: I kind of fell into it! I had been a producer of TV commercials and music videos. I moved to Suffolk with my family and had had a side hustle renovating houses for some time, which I started to find more rewarding and more conducive to family life than being abroad six months of the year filming. Nest’s first project was the conversion of a derelict chapel in Earl Soham, which I bought spontaneously at auction. That was an education in itself but a success and it has grown from there. People think it’s a huge leap from production to property development, but it’s really not that dissimilar. You are essentially putting a team of varied skills together to execute a creative idea, whilst managing the budget and programme What have been some of the key highlights for you? Over the past ten years we’ve developed a broad portfolio of projects. We have converted chapels and barns, renovated listed buildings, and completed new build schemes. Working with historic buildings and converting utilitarian agricultural buildings into quality, contemporary homes is always a challenge but it’s rewarding to stand back at the end and feel proud of the work we do.
And the challenges? Creating well designed, quality homes means it’s harder to achieve the viability, as we find compromise or corner cutting difficult. There are often design challenges, particularly with projects such as our latest scheme at Woolverstone. We started out with a range of agricultural buildings quite tightly packed onto the edge of a field. Originally constructed for agricultural functionality, such as crop storage or livestock accommodation, it is always an enjoyable process trying to determine the best way to achieve a residential development whilst retaining as much of the original character and soul of these buildings. The actual construction of these homes proved to the real challenge. Unforeseen structural issues (not uncommon with historic buildings built for a totally different purpose and generally fallen into disrepair), Covid issues, materials inflation, etc. etc. led to frustrating delays and added costs. What should have taken a year to eighteen months, ended up taking three years. Definitely our most challenging project to date! In general, hunting down suitable projects is extremely time consuming. I can look at a hundred different projects before I find one that’s viable and potentially the right thing for Nest. Given it can often take at least three years of work from purchase to sale, you really have to make sure you are picking the right project, in the right location, and buying it at the right price – otherwise you are in for an enduring world of pain. If you get the key decisions right, from the start, working life is a lot more rewarding.
Nest’s ethos is to only take projects on where we are confident we can walk away at the end feeling proud. We work closely with the best architects and focus on using quality materials and local trades & craftsmen. We are currently working on a scheme of new-build, carbon neutral houses. It’s been an education, and we are not there yet, but I feel it’s important we take a real responsibility as housebuilders to build sustainable homes. My creative background has been a great help on the design and architecture front. A lot of our clients are aesthetically uncompromising and want real quality. Delivering on this is more commercially challenging and we are reliant on adding value through better design and quality. Fortunately we have developed a good following of people interested in the homes we build but developing and maintaining the brand is becoming increasingly important. It’s been motivating to receive recognition from our peers. In recent years we have won several awards including the RIBA Design Award for Suffolk in 2019 and the RICS Best Residential Project for the East of England in 2016 and we were shortlisted for the National Housing Design Awards in 2017.
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Current issues in the development sector Inflation is the crucial issue facing everyone at the moment. Some products, such as bricks, have pretty much doubled in price. Sub- contractors are having to factor in uncertainty and therefore tender prices are getting a little out of control. I think this will change as the big housebuilders are now scaling back but it’s taking a while for costs to settle. The other big challenge is that the cost of sites has yet to really factor in increased build costs and the general risks that developers are taking on, such as market uncertainty with completed home sales. Development sites are still overpriced in my view, but they are also thin on the ground.
Currently we’re being squeezed from both ends. With high land values and inflated construction costs combined with a housing market in a state of flux, one has to really exercise caution. There remains very strong demand for our product but we clearly need to be making the correct decisions over the coming months. Sourcing expert advice We’re a small team and have leant on Scrutton Bland’s accountancy expertise to the extent that Ben Cussons, Associate Partner, is considered an integral part of the Nest family. He helps us with cash flow projections, valuations and regular snapshots of our financial position along with all kind of other accounting necessities including keeping us alert to any regulatory changes.
Like I mentioned earlier, it’s all about getting a strong team around you to provide the expertise required to help make the right moves.
Find out more: www.nestdevelopment.co.uk 01473 316895 nick@nestdevelopment.co.uk
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VAT Threshold Demystified: Your Guide to Registration
At what point does a business need to register for VAT? Daniel May, VAT Manager explains how to determine whether or not your construction business needs to declare your earnings to HMRC.
A UK- based business can make up to £85,000 of taxable supplies*, in other words, sales liable to the 20%, 5% or zero-rate of VAT, in a 12-month period before it is compulsorily obliged to register and charge VAT to its customers. The UK’s threshold is much higher than the average across the European Union. Many businesses selling to or serving customers that cannot recover VAT choose to operate slightly below the threshold to avoid the administrative and financial burden of registration. To counter this, the VAT threshold has been at the current level of £85,000 since 1 April 2017 and was frozen further as part of the last Budget, until at least 2026. A UK business must register if its total VAT taxable turnover for the last 12 months (‘look back’) was over £85,000, or it expects its turnover to go over £85,000 in the next 30 days alone (‘look forward’). It is worth noting that a business which is not established in the UK, is not usually able to use the threshold and will be liable to register as soon as it makes sales in the UK.
The look back test Under the look back test, at the end of every calendar month a business must calculate its taxable turnover for the proceeding 12-month period. This calculation needs to be carried out monthly, on a rolling 12-month period basis. Once the VAT threshold has been exceeded, the business must notify HMRC within 30 days. Its effective date of registration will start from the first day of the second month the threshold was exceeded. For example – if the threshold is breached at the end of March, HMRC must be notified by 30th April, and VAT must be charged by the business to its customers from 1st June. The look forward test A business must register with HMRC immediately if it expects to exceed the threshold in the next 30 days alone – for example, by issuing an invoice with a value of over £85,000. Where this happens the business must notify HMRC of the registration by the end of that 30-day period, and its effective date will be the date the expectation arose, not the date the income was received.
Voluntary registration A business may choose to register before it reaches the threshold. The main reason for doing so would be to recover input VAT on its costs if it makes supplies to registered businesses, customers based overseas only, or makes zero rated supplies. However, a business may also choose to register to give customers the impression that the business is bigger than it is. *Purchases of services from overseas which would be subject to the reverse charge (and items subject to the UK domestic reverse charge) are classed as a deemed supply and must be added to the taxable turnover when assessing the threshold. Also included is the sale of land which has been subject to an option to tax, but not the sale of other capital assets, or income which is exempt or outside of the scope of VAT.
If your construction business needs VAT advice please get in touch with Daniel by calling
0330 058 6559 or emailing hello@scruttonbland.co.uk
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Safeguarding Your Construction Business with Key Person Insurance
It’s often said that a business’s greatest asset is its people, and in almost every construction company there will be a number of individuals without whom it would be difficult for the business to succeed. These could be people who are creatively, technically or strategically vital to the day-to-day operations. Without their knowledge and skills the business would possibly lose construction contracts, see a fall in profits, and find it difficult to meet loan repayments. In this article, Tim Bell, Business Protection Consultant, explores the benefits of key person insurance and present a case study illustrating how it has positively impacted a construction business.
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K ey Person Insurance (sometimes referred to as Key Man) can help protect your construction business if one of these key people were to die or fall critically ill. It is particularly relevant in small and medium sized organisations where one or two people are responsible for generating a significant percentage of the business’s revenue. It can help to offset the financial losses incurred due to the absence, replacement, or restructuring costs associated with losing a key person. Who is Key to Your Business? To identify the people key person protection is most relevant to within your construction business, you should look at their skills, knowledge and leadership abilities, and think about the impact – particularly the financial impact - it would have if they weren’t there. Examples of individuals who could be identified as ‘key’ to a construction business might include company directors, people in important management positions and employees who are specialists or highly skilled such as engineers, IT experts and project managers. When Would Key Person Protection Pay Out? The policy would be triggered by the death, or terminal illness and sometimes critical illness diagnosis of the key person(s) you have specified. A lump sum would be paid to your business which could be used to help pay off an overdraft or loan, pay suppliers, help to find a replacement or to assist the key person’s family in their time of need.
3. Retaining Skilled Employees By offering key person insurance, construction companies demonstrate their commitment to the welfare and security of their employees. This can help in attracting and retaining talented professionals who appreciate the additional layer of protection offered by the policy. 4. Protecting Shareholder Value In construction companies with multiple owners or shareholders, key person insurance can safeguard the value of their investments. In the event of the death of a major shareholder, the policy proceeds can be used to buy out the deceased shareholder’s shares, ensuring a smooth transition of ownership and stability within the organisation. Case Study: XYZ Construction Company XYZ Construction Company, is a mid-sized construction firm specialising in commercial projects. They decided to implement key person insurance to protect their business and ensure its continuity. The key person identified by XYZ Construction Company was their highly skilled project manager. With years of experience and an extensive network of clients and subcontractors, he played a crucial role in managing projects and securing new business for the company. Tragically, he suffered a sudden heart attack and passed away. His loss sent shockwaves through the company, leaving a void in leadership and project management. However, since XYZ Construction Company had a key person insurance policy in place for him, they were able to keep their business going. The policy provided a substantial payout to XYZ Construction Company, enabling them to hire an interim project manager while searching for a permanent replacement. The funds also helped cover the costs associated with client reassurance, staff training, and maintaining business operations during the transition period. The key person insurance not only provided financial stability to XYZ Construction Company but also instilled confidence among their clients, suppliers, and employees. The swift response to the crisis and the ability to manage the aftermath seamlessly ensured the company’s reputation remained intact.
Are There any Tax Advantages? Key Person Insurance is arranged as an individual Life, or Life and Critical Illness policy. It is written on the employee’s life, owned by the company and may be tax deductible if certain criteria are met. These are:
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The sole reason for taking out the insurance is the trade purpose of meeting a loss of trading income that may result from loss of the services of the Key Person, and not a capital loss In the case of life insurance policies, they are term insurance, providing cover only against the risk that one of more of the lives insured dies within the term of the policy, with no other benefits.
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Where both of the conditions above are satisfied, the premiums may be tax deductible, and sums received under such a policy will be classed as income for your construction business. Any Other Points to Note? A Key Person Insurance policy is usually written on a short-term basis, typically for 5 years but can extend beyond that period as long as it is not proposed to extend beyond the expected usefulness of the key person. There is no benefit to cashing in the policy, and if you stop paying premiums your cover will cease. The example of XYZ Construction Company illustrates how having key person insurance in place can alleviate the financial burden and provide a solid foundation for recovery and continuity. As the construction industry continues to face challenges and uncertainties, investing in key person insurance is a proactive step that can safeguard the future of your businesses and ensure its long-term success. Get in touch with Tim Bell, Business Protection Consultant, if you would like to discuss key person insurance solutions available for your construction company and protect the invaluable assets that drive your business forward, by emailing hello@scruttonbland.co.uk or calling 0330 058 6559.
Benefits of Key Person Insurance to the Construction Sector
1. Financial Protection and Business Continuity Key person insurance ensures that a construction company can continue its operations smoothly in the event of the loss of a key individual. The policy payout can be used to cover financial gaps, such as finding a temporary replacement, hiring and training a successor, or maintaining cash flow during the transition period.
2. Securing Loans and Business Relationships
Lenders and business partners often look for assurance that a company can sustain itself, even if a crucial person is no longer present. Key person insurance provides confidence to lenders, making it easier for construction businesses to secure loans or establish crucial partnerships.
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VAT and land development
Daniel May, VAT Manager looks at VAT issues that developers need to consider.
I n the post-pandemic economy, we are increasingly seeing many property developers who are seeking to dispose of land they had previously banked for future development. This appears to be caused by concerns over rising interest and material costs, coupled with a recent fall in housing prices. Buying land for development may seem like a relatively straightforward transaction, but there could be a hidden VAT snares which can trap the unwary developer. However, with some careful planning and good advice, this can usually be avoided.
When is VAT payable? The purchase of land, is by default, exempt from VAT. However, the current landowner may have chosen to exercise an option to tax over the land in the past, meaning that VAT must be charged at the 20% standard rate to the developer when the sale is made. Where VAT is incurred, a property developer constructing new dwellings for onward sale is entitled to reclaim the VAT paid against the intended future zero- rated income from the dwellings. This is usually legitimately reclaimed before construction even begins, to aid cashflow. However - an issue may arise if, within six years of forming the original intention, and before first use, the developer changes their intention to sell the dwellings and instead decides to sell the land as a VAT-exempt transaction without having made an option to tax. This change of use and intention triggers a ‘clawback’ of the VAT meaning the developer must repay the VAT originally claimed upon purchase of the land. In addition, input tax on related disposal costs, and even input tax incurred in the past which is no longer within the de minimis limits, may no longer be reclaimable.
Finding a solution There is usually a solution, but it requires some careful consideration and advance planning with your tax adviser. If the developer is able to make their own option to tax, they can convert the exempt supply to a taxable one. The option to tax is a relatively straightforward process but – inevitably - does not come without its own economic and tax-related risks.
For example:
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If the buyer (the developer) is intending to make exempt supplies themselves, for example building dwellings to rent out), the increase in the sunken VAT cost could price them out of market for the land Certain types of sales are not impacted by an option to tax such as sales of land to a housing association, or to an individual that intends to build their own dwelling. In such cases, the option to tax is disapplied and we are back to square one
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Stamp Duty Land Tax (SDLT) must also be considered. SDLT is paid in relation to the VAT-inclusive sales price. The buyer could look to negotiate a reduction in price to compensate for the additional SDLT suffered as a result of making an option to tax Except for the 6-month ‘cooling-off period’, an option to tax cannot be revoked for 20 years, so further changes in intention could be negatively affected The option to tax must be made at the correct time and notified to HMRC in the correct manner
Whilst this approach is generally accepted by HMRC, it is a complex planning opportunity. It is strongly recommended that professional advice is taken in respect the development before it is relied upon as part of a proposed contract. How we can help The purchase, development and sale of land and property can be a complex and costly business and one in which the services of a trusted professional adviser is crucial. Whether you are looking to buy or sell land, develop property, or invest in a private rental portfolio, we have a team of specialists who have been selected from across our business for their experience in the sector and who are ready to help you with all aspects of your financial and business affairs.
Our land and property team includes tax, accountancy, insurance, and corporate finance professionals who have extensive expertise and knowledge of trends in this sector. We have individual specialists in challenging areas such as Stamp Duty Land Tax and property insurance. Our clients include private individuals, limited companies, landed estates, institutions, charities, and public organisations. Please contact Daniel or one of his colleagues in the tax team at hello@scruttonbland.co.uk or tel 0330 058 6559.
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Make the most of any golden bricks Where a dwelling is being constructed and work has progressed above foundation level, the sale of that dwelling to a buyer who will continue the development, may be treated as a zero-rated sale – thus avoiding the potential issues of irrecoverable VAT for both buyer and seller. This concept of building just above the foundation level is informally known as the ‘golden brick’.
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Safeguard Your Equipment: Preventing the Theft of Contractors’ Plant
The construction industry in particular faces a significant threat of equipment theft with the high value and portability of contractors’ plant makes it an attractive target for criminals. The website plantandcivilengineer.com has estimated that the UK construction industry loses more than £400 million per year through machinery theft.
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W hen such robberies occur, insurance premiums. The financial implications can be substantial, potentially jeopardising the profitability and sustainability of projects. Gary Stannard, Insurance Director, explores the risks associated with the theft of contractors’ plant and discusses effective measures to enhance security. Additionally, he looks at the specific considerations surrounding hired-in plant and the importance of choosing the right insurance coverage. Effective Measures for Enhancing Security To mitigate the risk of contractors’ plant theft it is essential to implement robust security businesses not only bear the burden of replacing the stolen equipment but also face the consequences of increased measures. Site security should at the very least include physical barriers and fencing to restrict unauthorised access to the premises. Large sites in potential problem areas should consider deploying security guards and those fortunate enough to have power may consider CCTV which can act as a deterrent and provide valuable evidence in the event of a theft. In today’s digital age, advanced tracking systems can offer an additional layer of security. GPS trackers enable real-time monitoring of equipment, allowing swift recovery in case of theft. Geofencing technology further enhances security by triggering alerts when equipment leaves designated areas. Physical anti-theft devices can also play a crucial role in safeguarding contractors’ machinery. Track locks, ram locks and immobilisers effectively render the equipment inoperable when not in use, deterring potential thieves. Alarm systems and tamper-proof locks provide an added layer of protection, alerting site personnel and authorities to any unauthorised access or tampering attempts. Should the worst happen and you lose plant, your chances of securing its recovery are twice as likely if you have paid the modest one-off cost to have the plant protected by CESAR/ Datatag. Visible markings to deter theft and hidden transponders enable police to identify ownership of recovered plant.
Additional Considerations for Hired-In Plant Theft of hired-in plant introduces a different set of considerations. In such cases, the hire company may seek to recover ongoing hire fees until the stolen equipment is either returned or compensated for. It is essential for clients to double-check whether their insurance coverage includes protection against such liabilities. Without adequate coverage, businesses may find themselves responsible for significant financial obligations. Addressing Insurance Coverage When it comes to insurance coverage for contractors’ plant and the site in general, understanding the site security requirements set by your insurer is crucial. Some policies may have security conditions which are hard to comply with and, as with most things, cheapest isn’t always best. An important aspect of an insurance brokers’ role is to check policy wordings and find a policy which the client is able to comply with – much better to pay a little extra than lose plant and have a claim repudiated due to breach of policy conditions. Proactively safeguarding contractors’ plant will help with initially lowering the cost of your insurance and in the long run should avoid the harsh premium increases which usually follow large theft claims. Selecting the appropriate insurance coverage is vital and having a knowledgeable broker can help navigate the complexities of insurance policies. Get in touch with Gary or one of our insurance specialists by calling 0330 058 6559 or emailing hello@scruttonbland.co.uk
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Does your payment application stand up?
Ben Cussons, Associate Partner, looks at the thorny issue of getting paid on time.
The construction industry is like no other, and possibly the most difficult to understand the inner workings of, particularly when it comes to finances. It is the only sector I am aware of where the system of applying for a payment rather than raising an invoice for work done is in common practice.
Why are payment applications raised rather than an invoice? The answer comes down to how the construction work is performed and completed on site and the time it takes for jobs and much larger projects to complete. Payment applications are more complex than a simple invoice, requiring multiple pieces of documentation to prove the legitimacy and validity behind the request for payment. For construction businesses, these applications are a much-needed source of finance required to successfully undertake a project and are essential to the ongoing working capital of a construction business. Working capital is the lifeblood of any business and is defined as the money the business has available to meet its short-term obligations. It is therefore crucial that these payment applications are completed correctly, and have all the necessary information and supporting documents to substantiate payment.
How does the application work? The working capital cycle of a construction project contract is that cash leaves the business for a period of say a month, an application is made at the end of that month and the cash received say another 30 to 60 days after issue. It is therefore very important that these applications are made at regular intervals and are a fair reflection of the value of work performed so that there is a constant flow of cash into the business, and (of course) enough working capital in the pot to continue with the project and keep the business trading. Unfortunately it is not uncommon for a profitable business to go under, simply by running out of cash.
What should a payment application include? As with any legal contract, a payment
application must be clearly laid out and it must be issued within the timeframe outlined in the contract document. It must be plain that the application is a demand for payment, and what the recipient needs to do to meet that demand. The terms used in the payment application should mirror those in the contract. For example, if you refer to ‘interim payment application’ in the contract then you should use the same form of words in the payment application. The key is to be as clear and unambiguous as possible. The payment application must include:
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How to Avoid Mistakes There are some easy ways to avoid payment delays as well as maintaining relationships with your employers/clients:
How we can help The construction industry has many employers who want to hold back payment, often because they fear the work contracted out won’t be completed properly or on time. On the other side of the coin, contractors want and need to be paid promptly. Getting the job done is a collaborative process between the two parties, hopefully building and maintaining a good relationship in the process. Managing the cash flow between the two is a vital part of business operations, and one where the services of a trusted professional adviser are crucial. We have a team of Business Advisory specialists who have been selected from across our business for their experience in the construction sector and who are ready to help you with all aspects of your financial and business affairs. Our construction team includes tax, accountancy, insurance, and financial planning professionals who have extensive expertise and knowledge of trends in this sector. Get in touch with Ben or one of the Business Advisory team by calling 0330 058 6559 or email hello@scruttonbland.co.uk
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The total contract value originally quoted in the project documentation:
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The financial value of all work completed to date, and also details of any materials stored on and off site
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Make sure that any payment applications are in line with regulatory guidelines for the Housing Grants, Construction and Regeneration Act 1996
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The total amount of money still owing to you
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The amount you have earned to date from the client, compared to the payments you have so far received
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Be punctual with sending in your payment applications
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Check that all the information and supporting evidence is included within your application. This must include visual proof of work performed Make sure that other compliance requirements such as insurance are in place and up to date, and that the client has been informed Follow that up with a phone call and/or email to make sure everything has been received and no other documentation is needed
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The financial value of any amounts retained
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The balance that remains to complete the contracted project.
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You may also choose to include supplementary information such as:
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A breakdown of the rates you charge for each element of the project, matched against the value or cost of the item Any changes that have been made over the course of the project so far which may have affected costs, such as materials, schedules, alterations to work requirements etc Visual evidence, such as pictures taken on your phone, to show that you have completed the work you are charging for, or that you are storing materials that have been purchased for the job Invoices from suppliers for materials delivered for the job, but which are still to be paid
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Resolving Disagreements Even when all your paperwork is complete and submitted on time, there will inevitably be situations where the employer/client who owes you money disputes your application and tries to pay less than you have asked for. In order to legally do this the client who owes you payment needs to issue a Pay Less Notice to you, which must be served within the time periods set by the contract with you, prior to the final date for payment. If the employer/payer has not served a Pay Less notice, there may be an option for a Smash and Grab adjudication. This route focuses on enforcing payment and recovering monies currently owed as soon as possible, without having to deal with claims and counter-claims for delays and charges. It is not designed to determine the total value of what is owed, rather it aims to resolve what needs to be paid now, and as such it won’t resolve any arguments over the true value of costs further down the line. Both of these options are complex legal issues and require professional advice before they are relied on to deal with any contractual disputes.
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Receipts from suppliers for materials delivered for the job which have been paid
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Compliance documentation which provides evidence of regulatory requirements such as insurances, VAT registration, and the signed subcontract
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Meet the Team Our team of property and construction specialists regularly advise a wide range of corporate and owner managed businesses, from large civil engineering contractors to specialist craftspeople and have a thorough understanding of the opportunities and challenges facing the industry.
We seek to build long-term, trusted relationships with our clients. It is important to us that we understand our clients’ business and personal aims and objectives, in order that we can provide bespoke and personal advice.
Get in touch with a member of the team to see how they can help you.
Ben Cussons Business Advisory Associate Partner ben.cussons@ scruttonbland.co.uk 01379 773532 Daniel May VAT Manager daniel.may@ scruttonbland.co.uk 01473 945823
Gary Stannard Insurance Director gary.stannard@ scruttonbland.co.uk 01379 773521
Tim Bell Business Protection Consultant tim.bell@ scruttonbland.co.uk 01473 945753
Mark Wilby Commercial Account Executive mark.wilby@ scruttonbland.co.uk 01379 773524
Jason Fayers Managing Partner and Tax Partner jason.fayers@ scruttonbland.co.uk 01473 945817
Mark Smith Corporate Finance Director mark.smith@ scruttonbland.co.uk 01473 945732
0330 058 6559 scruttonbland.co.uk
@scruttonbland
Scrutton Bland Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Our FCA registered number is 828934. 0774/05/2023/MKTG
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