NEW CHARGES PROPOSED FOR CDM 2007 NON-COMPLIANCE
HSE cost recovery plans set to change the construction safety landscape
Proposals have now been published for taking forward Government policy requiring HSE to impose charges on those found in breach of the CDM Regulations 2007 and other health and safety laws.
The new arrangements are contained in the Consultation Document seeking views on the proposed systems. The consultation period ends on 14th October 2011.
Charges for those in ‘material breach’ of law
The new ‘Fee for Intervention’ will be invoiced where there is a ‘material breach’ of health and safety law. A material breach is one which, in the opinion of the inspector, requires them to make a formal intervention. HSE will recover all of the costs of that intervention.
A formal intervention is where a requirement to rectify the breach is formally made in writing e.g. by enforcement notices, electronic mail or letter.
Those who are in compliance with requirements will pay nothing nor will those in ‘technical’ breach of the law i.e. a breach which, in the opinion of the inspector, does not require them to make a formal intervention. The proposals also exclude:
- inspections and incident investigations by Local Authorities;
- self-employed, unless they expose other people to risks; and
- breaches by employees.
High five figure sums could be payable
Costs will be recovered from the start of the intervention during which the material breach was identified up to and including the point where intervention in relation to that breach had been concluded.
The costs will include all related follow-up interventions (e.g. site visits, phone calls), the provision of any specialist assistance, the costs of writing letters and reports plus the drafting and issuing of any enforcement notices.
An averaged hourly fee for intervention rate will be charged (estimated at £133) for all HSE staff involved in the interventions. This excludes the Health and Safety Laboratory specialist services (HSL) for which actual cost will be charged. The estimated averaged costs recovered are:
- Inspection with no action – no costs;
- Inspection with letter – approx £750;
- Inspection with enforcement notice – approx £1500;
- Investigations – appox £750 to tens of thousands of pounds.
The actual intervention costs will depend upon the particular circumstances and the complexity of the investigation required to follow all reasonable lines of enquiry
No change in enforcement policy and procedures
HSE has publicly available policies and practices setting out the principles that inspectors apply when deciding on the appropriate action to take in response to breaches of health and safety legislation. These will remain unchanged by the introduction of the cost recovery scheme.
There will a queries and disputes resolution procedure aimed at resolving all queries or disputes “promptly, fairly and in a transparent way”. The costs of handling disputes will be charged where the dispute is not upheld.
Clients, designers, CDM-Cs and contractors all at risk
The CDM Regulations 2007 imposes duties on a range of organisations.
When undertaking interventions e.g. inspections, investigations, enforcement or following up complaints, HSE will identify those CDM duty holders to whom fee for intervention applies and will seek to recover costs from them where they are in material breach of health and safety law.
Comment
These proposals represent a major departure from the current system under which HSE only recover costs in construction where legal proceedings are instituted. However, this is now the opportunity to influence the nature of the system imposed. Some immediate thoughts are:
- HSE behaviour – there is no intention to change the behaviour of HSE Inspectors who should continue to exercise their discretion based on the facts and existing policies and procedures. However, in practice there is likely to be a complex interplay between the new charging system and the behaviour of HSE Inspectors, including some unanticipated consequences;
- Exercise of discretion – the decision to charge will be based on the opinion of the Inspector that the breach is ‘material’ and that formal communication is ‘required’. HSE guidance to inspectors on the exercise of such discretion will come under close scrutiny, debate and ‘negotiation';
- Diversion of resources – there is likely to be an impact on HSE/ Industry relationships and formal disputes may divert all parties from dealing with real safety issues. The time taken to recover costs from the recalcitrant end of the industry could be significant;
- Costs imposed – the charges imposed on organisations may be substantial especially where the HSE intervention arises from a incident. There is no limit to costs or restriction based on the ability to pay;
- Whistle blowing – complaints to HSE may rise, made by those who comply or those charged and concerned that others are ‘getting away with it’;
- Project relationships – clients, designers and CDM-C’s will come under increasing scrutiny as contractors seek to point HSE further up the supply chain when matters go wrong on site;
The test of the system will be whether or not it improves the levels of compliance, risk and personal harm that currently arise on UK construction projects.
Latest Construction Health and Safety News
CONSTRUCTION SAFETY NEWS – END OF NEW CONTENT
The addition of content on this website ceased on 17th April 2020.
Material posted before this date can be found by clicking on our SEARCH NEWS DATABASE function.
CDM REGULATIONS 2015: GUIDES AND TEMPLATES
Summary of our advice and tools to aid CDM 2015 compliance
Read the rest of this article »
Posted on 21st April 2020HSE WARN OF NEED FOR RPE FACE FIT TEST AND CHECK
Incorrectly fitted RPE will not protect the wearer from dangers to health
Read the rest of this article »
Posted on 16th April 2020CORONA VIRUS: LATEST SITE OPERATING PROCEDURES
Industry Bodies publish risk management guidance Version 3
Read the rest of this article »
Posted on 15th April 2020TOWER CRANE OUT OF SERVICE SAFETY ALERT
Important advice from Construction Plant-hire Association and HSE
Read the rest of this article »
Posted on 30th March 2020HSE PLAN AND CONSTRUCTION PRIORITIES 2020/21
Appointed CDM 2015 Principal Designers remain focus of HSE inspections
Read the rest of this article »
Posted on 30th March 2020COVID-19 ADVICE & GUIDANCE FOR CONSTRUCTION
BuildUK support industry with advice, guidance and information
Read the rest of this article »
Posted on 30th March 2020HSE TARGETING WELDING FUME CANCER RISK
Inspections to enforce improved controls required by new risk evidence
Read the rest of this article »
Posted on 24th February 2020HSE TO OVERSEE NEW BUILDING SAFETY REGIME
Government to deliver biggest change in building safety for a generation
Read the rest of this article »
Posted on 21st January 2020FESTIVE GREETINGS TO ALL OUR READERS
Read the rest of this article »
SELECTED NEWS POSTED RECENTLY ON TWITTER
Links to other construction health and safety related news reports
HSE LOOK TO LOCAL AUTHORITIES FOR CDM SUPPORT
Council Inspectors focus on CDM client duties – asbestos, fragility and RCS
Read the rest of this article »
Posted on 14th November 2019HSE WELDING FUME REVISED GUIDANCE PUBLISHED
New research evidence on cancer link prompts revision on welding fume
Read the rest of this article »
Posted on 14th November 2019STRUCTURAL SAFETY BODY LATEST NEWSLETTER
CROSS publishes reports and expert comment on a range of issues
Read the rest of this article »
Posted on 18th October 2019HSE RISK REDUCTION THROUGH DESIGN AWARD
Regulator seeks to promote hazard avoidance and risk minimisation
Read the rest of this article »
Posted on 18th October 2019HSE START PROJECT HEALTH RISK INTERVENTIONS
Regulator set to check health risks assessed and controls in place
Read the rest of this article »
Posted on 30th September 2019AIF NATIONAL WORKING AT HEIGHT CONFERENCE
HSE Construction Head to speak at Access Industry Forum conference
Read the rest of this article »
Posted on 23rd September 2019NEW HSE HAVS CALCULATOR TO HELP CONTROL RISK
New calculator includes “cautious estimates” for common tools
Read the rest of this article »
Posted on 23rd September 2019IMPROVING CDM DESIGNER HAZARD AWARENESS
Research explores power of “multi-media digital tool” for design hazards
Read the rest of this article »
Posted on 27th August 2019DEMOLITION FEDERATION ON RECENT INCIDENTS
NFDC ‘statement of awareness’ follows unplanned collapses
Read the rest of this article »
Posted on 27th August 2019RAISING COMPETENCE AND MAKING BUILDINGS SAFER
Life-safety-critical disciplines urged to act on Interim Report
Read the rest of this article »
Posted on 27th August 2019BUILDING WORKS COMPROMISED GAS SAFETY
Company and director fined after work created risk to residents
Read the rest of this article »
Posted on 27th August 2019HSE SPEAK AT ACCESS INDUSTRY CONFERENCE 2019
AIF National Working at Height Conference November 2019
Read the rest of this article »
Posted on 6th August 2019STRUCTURAL SAFETY BODY LATEST NEWSLETTER
CROSS publishes reports and expert comment on a range of issues
Read the rest of this article »
Posted on 23rd July 2019