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Last edited 04 Dec 2020
The commercial implications of Brexit
|Rob Driscoll, ECA Deputy Director of Business, reflects on an ECA briefing for members in March 2019 about the commercial implications of the UK leaving the EU.|
Fergus also noted that delays at ports for the importing of goods, materials and equipment could be anywhere between 3 to 6 months in a no deal scenario, and that contractors should factor this into their plans in the months ahead.
My colleague Andrew Eldred (ECA Director of Employment and Skills) asked Fergus an intriguing question on the impact Brexit could have on our longer terms skills policy - specifically whether it could lead to the ‘junkie’ (i.e. businesses) having their ‘fix’ (i.e. overseas workers) being taken away?
My own presentation focused on busting some myths.
For instance, the real average percentage of directly employed workers in businesses is 70-75%. This raises the question among contractors of where the sector was sourcing the remainder, given that EU nationals represented 14% of the sector’s workforce.
I highlighted that exports and imports to the EU account for around 60% of construction materials, and that four of the top five products both imported and exported relate solely to the engineering services sector.
The resulting prediction was that if the value of the currency goes down, delays are likely on imported products (including the top 5, which account for 38% of all imported products), with the cost of materials potentially increasing due to the currency and their scarcity.
There is another way – what I am calling ‘force municipal’. Essentially this is a new clause you can request which specifies that any time or cost consequences incurred since the quotation date, which are due to Brexit, should give you a right to recovery under your contracts.
We have created some guidance on this, which will be available to download on the ECA member website. In here, you can also find a useful ‘Brexit risk assessment checklist’, which will help you analyse the broader risks faced by your business.
ECA’s CEO Steve Bratt wrapped up the event, held at the Barbican centre in London, with a flourish: ‘My son told me the if we really want to leave Europe efficiently, why not put the England football manager in charge?’
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