Engineering Construction Sites

1.22 Engineering Construction Sites

The purpose of this Rule is to draw the attention of member firms, clients, major contractors and employees to the fact that there may be a need on certain engineering construction and module fabrication sites to introduce additional payment measures to SJIB employees to maintain reasonable compatibility of earnings with other trades.

There are five possible categories of project:

(a) National Agreement for the Engineering Construction Industry Projects defined as Category 1, 2, 3 or 4
Where skilled trades are engaged on these categories they shall be paid NAECI rates of pay.

(b) Module Fabrication Yards
For onshore construction of oil and gas rigs, platforms and related structures on which there may be parity problems between the earnings of other trades and those of the electrical contractors, a fixed second-tier payment will be introduced at the sole discretion and with the written authority of the Secretariat after following the defined dispensation procedure.

Any company wishing to apply for an off-shore agreement must apply for dispensation in accordance with 1.22.  See Appendix 5.

(c) Projects Covered by Client Agreements
On those projects the electrical contractors will normally be required by the client to adhere to the rates of pay and conditions of employment incorporated in the Client Agreement.

(d) Projects Designated by the MPA Forum
This heading covers all Large Mechanical and Electrical Projects designated by the Major Projects Agreement Forum.  Copies of the MPA can be purchased from the SJIB at The Walled Garden, Bush Estate, Midlothian, EH26 0SB.

(e) Other Projects
This heading covers any other major project on which there may be parity problems between the earnings of other trades and those of electrical contractors.

(f) Dispensation
If the member firm is tendering for work in any of the five categories mentioned above, he must inform the Secretariat and, if appropriate, complete an Application for Dispensation to Tender (see Appendix 5).  Where there is any doubt in the member firm’s mind, such as in relation to projects in categories (b), (c), (d) and (e), he should seek advice from the Secretariat.  They, if appropriate, will discuss the matter with other member firms submitting tenders for the work and agree a common approach and award dispensation accordingly.

The Secretariat, after consultation with the leaders of both parties, may award Dispensation and advise the SJIB accordingly.

Criteria Relating to the Project

The project must come within one of the following criteria:

(a) The project must involve major new construction work.

(b) Long Term Maintenance Work.

(c) Refurbishment to incorporate machinery to manufacture a saleable product.

(d) Engineering construction trades must be employed or be due to be employed and be in receipt of payments in excess of the SJIB graded rates of pay during the period when the SJIB firms are working on the project.

(e) The project has payments in operation in excess of the SJIB graded rates of pay.

(f) The project has a defined client agreement.

Excluded Sites

The following sites are specifically excluded from such second-tier payments:

(a) General building sites such as Office Blocks, Hospitals, Universities, Housing Complexes, etc.

(b) Sites where (i) arrangements to operate an incentive scheme or (ii) other payment enhancement to the SJIB National Working Rules have been awarded dispensation by the SJIB.

(c) Ships not moored to the land, Offshore Rigs and Platforms at their final position in the UK, designated areas for the exploration and/or production of oil or gas from the sea bed.