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Regulations Influencing The UK Construction Industry - Essay Example

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Since the Rio de Janeiro’s Earth Summit held back in 1992, both sustainable development and sustainability have captured substantial attention in all global industries, particularly the construction industry. …
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Regulations Influencing The UK Construction Industry
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Download file to see previous pages Due to this concern, sustainable construction’s concept emerged, while national governments passed a number of regulations to help in the management of the large construction industry. Undeniably, sustainable construction remains an imperative channel of improving the construction industry’s performance, hence rendering it more sustainable. Consequently, national governments have helped to reduce the environmental challenges posed by the diverse construction activities (Hackett et al, 2006). The construction sector remains an imperative industry in the UK. It has profound social, environmental, and economical impacts. According to Barkham (2012), the construction industry of the UK contributes around 10 percent of the total GDP of the UK. Besides, it provides over 1.5 million individuals with employment. However, it has dire environmental effects attributed to the diverse construction activities. For instance, the UK reports an annual average waste of about 70 million tones with about half of all generated energy being used by the sector. The UK has passed several acts, including the Anti -Corruption Act of 2012. Such developments have improved sustainable construction levels throughout the nation, even though it still lags much behind compared to the other European nations (Morton, 2007). The purpose of this paper is to examine some regulations, which impact upon the UK construction industry and the impacts they have had upon it. The first regulator of the construction industry is the CIS (Construction Industry Scheme). The CIS stipulates the rules and procedures of how contractors must handle their subcontractors’ payment during construction work within the construction sector. The CIS applies primarily to construction contractors and subcontractors within the mainstream construction activities. Conversely, the firms and businesses whose central work is not construction are required to handle their work as contractors within the construction sector; they consequently fall under CIS. This is usually applicable to firms and businesses that have a relatively high yearly expenditure on construction work (Morton, 2007). All contractors under CIS must follow some stipulated regulations when paying their subcontractors. Subcontractors are advised to register themselves with the HMRC and ensure they inform them about any changes they make to their businesses in order to ascertain that they are paid their dues correctly (Morton, 2007). Contractors under CIS are also obliged to make their monthly returns every month. Finally, both contractors and subcontractors working under the CIS should update the HMRC about any alterations they make to their business since their registration with the scheme. These changes or details include change in address, business legal structure changes, liquidation, and cessation of operations among other issues (Ruddock, 2008). Another important regulation is the 2008’s Climate Change Act of the UK, which became a law on first December 2008. This act concerns itself with the cutback of greenhouse gases emission. It goes further to affirm that the UK government has a binding duty of assessing the diverse risks associated with climate change within the UK. Conversely, this act only guarantees a certain level of carbon cutback by the year 2050. In addition, it affirms that carbon emissions must be minimized by at least twenty six percent and eighty percent by 2020 and 2050 respectively. The government intends to achieve this via several ways involving increased carbon pricing and utilization of renewable energy (Myers, 2008). Therefore, it is advisable to mull over ...Download file to see next pagesRead More
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