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The Chemical Engineer - Consultants & Contractors Guide 2020 - December 2019
The Chemical Engineer - Consultants & Contractors Guide 2020 - December 2019
POSITIVE OUTLOOK
The emerging areas where
consultants can add value for clients
EXPERTS INSIDE
ompre ensi e listin s and profiles
of consultants and contractors
Consultants &
Contractors
Guide 2020
c&ccover DG.indd 2 27/11/2019 13:20
www.ottosimon.co.uk
eng@ottosimon.co.uk | 0161 491 7440
ENGINEERING CONSULTANCY
PROCESS SAFETY
PROJECT DELIVERY
OPERATION & MAINTENANCE
Over 140 years of specialist engineering and project delivery services for
the process and industrial sectors. An independent contractor based in
South Manchester, Otto Simon provides multi-discipline engineering and
award winning health and safety performance to serve your project needs.
Visit www.thechemicalengineer.com
The Changing
Face of Consulting
www.thechemicalengineer.com
“
are risks to be managed. With
and complexes we help design, new technologies there is risk
operate and optimise. In many in ensuring they deliver to what
cases, it is more efficient to power is expected. One example is THE DEVELOPMENT AND
our plants from the sun and wind
– whilst gas is more valuable to
operators as an end product.
As a profession, the use of
digital tools is nothing new –
with hydrogen arriving as an
energy store, as new safety risks
are present. Additionally, the
development and implementation
of these new technologies and
IMPLEMENTATION OF THESE
NEW TECHNOLOGIES AND
APPROACHES GENERALLY
COME WITH COSTS THAT
ARE NOT ALWAYS WELL
“
process simulation software has approaches generally come with
been available to us for many costs that are not always well KNOWN AT THE START
years but we are seeing these known at the start – and these
www.thechemicalengineer.com
commercial aspects are important risks, but also take advantage of part to play in these new and
as part of the overall success of this technology. When applied exciting areas – in identifying,
projects in this space. appropriately, technology is justifying and implementing these
able to offer benefits. Remote new technologies in robust and
DATA: THE NEW OIL operation, automation, video sound ways.
The risks for data are two-fold.
analysis are all examples of how
Data is a valuable asset and
we can manage and reduce the
should be considered as the
saying goes: “data is the new risk for people who work in the Andrew Campbell CEng
oil”. The cyber security risks are facilities that we manage. As FIChemE is Chair of IChemE’s
also something that needs to consultants there is a significant Consultancy SIG
be considered in a systematic
way as do all other risks you
may consider. How will you be HOW TO GET IN TOUCH WITH THE CONSULTANCY SIG
able to perform your job if your
computer and/or control systems EMAIL: consultsig@ichememember.org
stops operating, or operates at a WEBSITE: www.icheme.org/membership/groups/special-interest-
reduced speed? groups/consultancy
As chemical engineers we LINKEDIN: www.linkedin.com/groups?gid=4867261
are in a place to manage the
www.icheme.org/incompany
C&C2019
www.thechemicalengineer.com
Understanding and facilitating the effective management of risk is our core business.
Our expertise covers the full range of risk assessment and management services across:
Only when the risk facing an organisation is well understood can it be effectively managed.
Key to the successful identification, assessment and management of risk is engagement with the right
people, using the right processes at the right time. We believe we are different to many of our competitors
and our approach is distinctive, we don’t always walk the well-trodden path but look at each client’s
particular risk context and develop a tailored solution, working in partnership with our client.
We work across all aspects of risk, from Quantitative Risk Assessments and Predictive &
Consequence modelling, through to the ‘softer’ risks which may affect an organisation’s reputation.
Contact us
Telephone
01962 717070
email
enquiries@bpe-ds.com
website
bpe-ds.com
BPE
Leading the way in chemical and biochemical engineering design
rofile
BPE is a UK leader in chemical every possible consideration of
and biochemical engineering a project before deciding on the
design. Its deep knowledge of best approach. It’s this informed
process engineering and the decision making that ensures
principles behind it is unrivalled. its clients’ projects start off on
It’s why some of the most the right path, fully optimised to
significant manufacturers in the meet the defined objectives.
world, both large and during BPE’s team of chemical
start-up, rely on the award- engineering specialists can
winning firm to help make their assist on any level - from research papers cover a range
processes safer and as efficient simple one-off consultations of the most topical issues in
as they can be. to the design, installation and process engineering, including
BPE offers a full range of commissioning of complete continuous processing,
process engineering services projects. filtration scale-up and LOPA/
and has developed a unique The company firmly believes high containment. The full
approach to concept studies, sharing best practice helps the list is available to view at
based on interactive workshops entire industry to progress and https://www.bpe-ds.com/
and iterative design steps. develop. It’s why it’s committed whitepapers/. There you can
These workshops bring to sharing its all of its insightful also request a digital copy of
everyone together to look at whitepapers for free. The each whitepaper for free.
www.thechemicalengineer.com
a in imes
ontractors must prepare or ne off payroll ta c an es, says DAVE CHAPLIN
NEW tax legislation that will employment status for tax client. These include:
be introduced in the UK in purposes, or “IR35 status”, • IR35 status disputes resulting
April 2020 is set to have a and then tax the contractor’s in contractor walkouts.
huge impact on contractors rate as employment income if
• Contractor abandonment of
working in the private sector. applicable. This is already in
projects, resulting in delays
The new legislation will force place in the public sector and
and cancellations.
private sector companies to has led to a big reduction on
be responsible for determining the hiring of limited company • Greater cost of retaining
a freelancer or contractor’s contractors “inside IR35” due
contractors.
to increased rate demands.
“
WHAT YOUR CLIENT NEEDS TO • Employment rights challenges
S ,
“
IF CLIENTS IGNORE OR
DELAY DEALING WITH THE
www.thechemicalengineer.com
“
won’t be vacant for long.
Once you have secured work
, S
on an “outside IR35” basis, the
key is to sustain your IR35 status
S ,
and engage in working practices OF OBLIGATION (MOO) ARE
that reaffirm this. Brush up on your
understanding of IR35 and the key
employment status factors.
Control, personal service, and
mutuality of obligation (MOO) are
AND CONTRACTORS
“
THE THREE FUNDAMENTAL
FACTORS WHICH GENERALLY
S S,
www.thechemicalengineer.com
Company licences
available for this
essential resource
THE use of limited company decide whether IR35 applies to a Status Determination Statement
contractors (personal services specific assignment or not. (SDS)” decision an end client has
companies or PSCs) in the UK arrived at, it will be the end client
chemical, biochemical and TABLES HAVE TURNED who will be held liable for unpaid
process engineering industry IR35 is not a new concept. Nor PAYE and NICs. For many end
has been extremely common is the law changing, it is only the clients this could mean potential
“
since the early 1970s and it is party responsible for making the
rare to see any major projects decision that has changed. This
executed in the sector without
a significant percentage of
contract labour.
There is no doubt the IR35
reforms that are expected to
means end clients now need
to understand the complexities
of IR35 and what constitutes
disguised employment and what
is genuinely an “outside IR35
IR35 IS NOT A NEW
CONCEPT. NOR IS THE LAW“
CHANGING, IT IS ONLY THE
PARTY RESPONSIBLE FOR
MAKING THE DECISION
become law on 6 April 2020 will engagement”. The risk to end
disrupt the use of PSCs while end clients is significant. If HMRC THAT HAS CHANGED
clients adapt to the fact they will disagrees with the “outside IR35
www.thechemicalengineer.com
“
IF END CLIENTS WISH
TO CONTINUE TO ENJOY
THE FLEXIBILITY OF
HIRING PSC WORKERS
THEY NEED TO HAVE
THE APPETITE TO
“
REVIEW ALL INTERNAL
POLICIES REGARDING THE
HIRING, ENGAGEMENT
AND RELEASE OF
CONTRACTORS
liabilities of several million pounds. willing to make wholesale changes for line managers and other
PSC workers have been grappling to how they engage and use PSC internal stakeholders. Also, give
with IR35 compliance for 20 years workers are likely to find a much consideration for a communication
but the key indicators remain higher percentage of “outside strategy for the contractors
the same. Right of Substitution; IR35” determinations. themselves. This is an unsettling
Supervision, Direction & Control; There are many tools available time for PSC workers; in many
and Mutuality of Obligation are the on the market that will help end cases an IR35 SDS decision
three critical fundamentals that will clients meet and manage their may mean up to 30% difference
prove if IR35 applies or not. SDS review obligations, but in net pay. Be sensitive and
without a really detailed root communicate expected timelines
PRACTICES AND PROCEDURES and branch review of how PSC and outcomes as early as possible
The challenge for most end clients workers are used within the end to allow them time to prepare.
is being able to understand how client organisation it is unlikely that Remember, the draft legislation
these IR35 indicators can be the “outside IR35” decisions will allows all SDS decisions to be
identified within their own hiring be optimised. appealed by the PSC worker so
practices and procedures. If make sure you have a published
end clients wish to continue to BEYOND PAPER process prepared in plenty of time.
enjoy the flexibility of hiring PSC One final word of caution for If you haven’t already got expert
workers, they need to have the end clients. Do not be tempted help in to help you plot your path
appetite to review all internal to see this as a paper exercise. through the reforms, now is the
policies regarding the hiring, Any changes to policies and time to act.
engagement and release of procedures for the use of PSC
contractors. If PSC workers are workers must be reflective of
used simply as an extension to the actual day-to-day situation. Mike Innes is a Director at
full-time employee (FTE) workers Similarly, any changes in TRS Staffing Solutions; he led
and there is little difference to contracts must accurately reflect the BCECA response to the
how PSC workers are deployed, the changes in policies and IR35 private sector reforms,
a high percentage of “inside procedures. Do not underestimate and subsequently helped its
IR35” determinations are likely. how large a job this is, along member companies to reduce
Conversely, end clients that are with the education required impact and disruption
www.thechemicalengineer.com
IChe
For more information or to request a quotation m
E
contact courses@icheme.org
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JOHN CHALLENGER reviews the exclusion of the chemicals sector from construction legislation
THE answer to the above providing access to plant or now is perhaps less clear than it
question is apparently simple: machinery, on a site where the was at the time that the Act was
it is when it is specifically primary activity is: being drafted. The legislation
excluded under the Housing was proposed as a means of
• nuclear processing, power
Grants, Construction and generation, or water or effluent correcting some of the extremely
Regeneration Act 1996 and its treatment; or poor practices, ranging from
various amendments non-payment to contractual
(“the Act”). • the production, transmission, and operational inadequacies,
As is well known to participants processing or bulk storage that had existed in the general
in the chemical and related (other than warehousing) of building and construction
sectors, Section 105(c) of the chemicals, pharmaceuticals, industry. These had led to a
Act excludes the “assembly, oil, gas, steel or food and high level of disputes between
installation or demolition of drink. purchasers, contractors and
plant or machinery, or erection The next question might be: subcontractors. Unfortunately,
or demolition of steelwork for why were those construction IChemE’s Contracts Committee
the purposes of supporting or operations excluded? The answer and several other bodies from
Visit www.thechemicalengineer.com
“
the power and nuclear industries In spite of the above, the issue
were not consulted until late in of “hybrid” contracts has been
raised and will no doubt continue
THERE WERE
the drafting process. We raised
concerns that we might be drawn to be raised in the future. Such CONCERNS ABOUT THE
into unnecessary legislation contracts contain construction ACT’S INTRODUCTION OF
because the chemical industry, in activities that have now been ADJUDICATION TO RESOLVE
particular, had well-established defined by case law as containing DISPUTES MORE QUICKLY,
contracts dating back to the parts that are both within and are WHICH WE BELIEVED WOULD
excluded from the Act.
late 1960s, when the first Lump
Sum Contract (The Red Book)
was published and we had
an extremely low incidence of
disputes.
EXAMPLES
Deciding whether a given activity
falls inside or outside is not
always straightforward as shown
NOT SUIT THE CHEMICALS
INDUSTRY BECAUSE OF
THE COMPLEXITY OF OUR
PROJECTS WITH THEIR
FAR-HIGHER LEVELS OF
“
In addition, there were
in the following examples:
concerns about the Act’s TECHNOLOGY INTEGRATION
introduction of adjudication to • In North Midland Construction
resolve disputes more quickly, plc v AEE Lentjes UK [2009]
which we believed would not EWHC 1371 (TCC) the Court
suit the chemicals industry found that a sub-contractor’s
because of the complexity of enabling and civil works
our projects with their far-higher at a site where a flue gas
levels of technology integration. desulfurisation plant was
Experience showed IChemE that going to be installed did not
the appointment of an expert fall within the exclusion under
resolved simple or technical s105(2). North Midland had
disputes in a cost effective and been contracted to provide
timely manner. This led IChemE temporary fencing, roads,
and other similar bodies to seek offices and drainage at the
and secure the exclusion of site, as well as demolition
defined activities from the Act. and foundations works. The
The IChemE’s Contracts Court held such works were
Committee took a reasonably preparatory in nature and
pragmatic view of the legislation could not be regarded as
in general. As a result, we felt works under section 105(2)
that major changes to our well- (c), even though the primary
established contracts were not activity of the site would be
power generation.
required, with the exception of
some editing of the payment • In Cleveland Bridge (UK) Ltd v
terms which were brought in line Whessoe-Volker [2010] EWHC
with the Act. It is pleasing to note 1076 (TCC) the Court had to
that in a recent case brought split the operations performed
before Mrs Justice O’Farrell in the by Cleveland Bridge into
High Court (C Spencer Ltd v MW those excluded and those
High Tech Projects UK Ltd) the within the 1996 Act’s remit.
terms relating to payment in the Cleveland had been carrying
Brown Book were considered to out works at a liquefied natural
be compliant with the Act. There gas terminal. The Court
are similar terms contained in found that Cleveland’s prior
other IChemE forms of contract. fabrication drawings, off-site
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“
fabrication and delivery were Services Contract (Silver Book
not excluded works but that – 2017)) and the (Minor Works
the erection of steelwork to Contract (Orange Book – 2018)) ICHEME’S CONTRACTS
pipe racks and pipe bridges at
the gas terminal fell within the
exclusion.
An internationally acclaimed series of model forms of agreement, developed to reflect best practice for project delivery
in the process industries. Drafted by a team of legal and industry professionals, these contracts address the complex
way in which the purchaser, contractor and subcontractor divide responsibility for creating new process plants and
working on existing structures.
Visit www.thechemicalengineer.com
Key features
100+ oral presentations and posters from industry
practitioners, researchers and regulators
invited plenary speakers from industry
panel discussion
trade exhibition of process safety products and services
social and networking opportunities
Celebratin
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Consultants listings
From independents to major consultancies, these companies help bring your projects to life
Costain oilandgas@costain.com
Aberdeen, Manchester, +44 (0)161 910 3444 Robert Pitman 3,700
www.costain.com
Maidenhead, Solihull, UK
www.thechemicalengineer.com
Process development/evaluation
Health & safety management
Environmental management
Project management
Plant commissioning
Quality management
Energy management
Oil, gas & petroleum
Inorganic chemicals
Plant construction
Plant optimisation
Organic chemicals
Water treatment
Pharmaceuticals
United Kingdom
Expert witness
North America
Biotechnology
Plant design
Middle East
Australasia
Training
Europe
Energy
Africa
Asia
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Contractors listings
From independents to major contractors, these companies help bring your projects to life
Costain oilandgas@costain.com
Aberdeen, Manchester, +44 (0)161 910 3444 Robert Pitman 3,700
www.costain.com
Maidenhead, Solihull, UK
C&C2019
ONLINE
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Site supervision/commissioning
Project management/execution
Central & South America
Modular construction
Engineering services
Oil, gas & petroleum
Inorganic chemicals
Operations services
Materials handling
Organic chemicals
Water treatment
Pharmaceuticals
United Kingdom
North America
Biotechnology
Europe
Energy
Safety
Africa
Asia
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