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How Will Brexit Allow for Regulation Changes in Construction

According to a new CBI study, Brexit is presenting opportunities for regulatory changes in certain sectors that will benefit the UK economy and consumers alike.

The study, which took place over a six-month period, found the opportunities for innovation and divergence were outweighed by the costs of detouring from rules that ensure easy access to the EU market.

It also found that changing the rules in one sector could affect supply chains and companies in other sectors. According to the report, the construction sector has certain regulatory needs, the first being convergence on rules for construction materials and products, which is important in to protect manufacturer competitiveness and avoid major trade barriers.

The CBU also insisted that keeping procurement rules between the UK and EU equal is important but there are still opportunities to improve how British procedures work in the construction sector without deviating from EU rules.

Neil Carberry, Managing Director of Infrastructure and People at CBI, said that report provides valuable evidence about construction regulation that can enable good decisions to be made, thereby protecting investment, jobs, and standards of living across Britain.

Mr. Carberry explained that this experience-based evidence of UK companies will be important in the coming months, as negotiators need to understand how complex the rules are and how even small changes can have an effect.

He added that construction is one of the country’s most vital sectors. It literally lays the foundation for other sectors and is the second largest in terms of employment. The EU is important to its success, especially in providing a major part of the workforce.

Structural Defects Insurance

Construction regulation in the UK may benefit from improvements in some areas and convergence in areas such as materials. For example, while equivalence in procurement standards is important, there are opportunities to improve construction procurement in the UK.

Brian Berry, Chief Executive of the Federation of Master Builders, said that the British construction industry needs to transition through Brexit as smoothly as possible. Whether it is the stability of the manufacturing industry or continuity in health and safety regulation, ongoing construction regulation alignment will be important to the sector.

He approved of the CBI’s emphasis on continuity and stability and said that the Federation of Master Builders supported it.

Build UK Chief Executive Suzannah Nichol MBE said that Build UK supported the CBI emphasis on jobs in the UK regulatory regime to avoid expensive changes that would affect the construction industry.

The CBI study, Smooth Operations, is based on thousands of communications with British businesses and trade associations. It provides an A to Z of the rules that will be important after the transition period ends. It outlines and explains the regulatory requirements of 23 industry and service sectors, of which 18 are in favour of alignment or convergence for most of the regulation that matters.

Specialists in Construction Insurance


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