Global supply chains have been strained by geopolitical events. As a result, the construction sector has experienced increasing demand for stolen goods. Here, Angela Irvine at The Bletchley Group (“Bletchley”) outlines safeguarding measures for your business.

The challenges of delivering construction projects on time and to budget have increased significantly, due to volatile supply chains, reduced primary production and disruption to the movement of goods. There’s a knock-on effect and, arguably, a perfect storm as supply shortages increase demand for second hand equipment, and thieves spot an opportunity to make money. 

According to NFU Mutual research, 89% of UK tradespeople have been victims of theft, while figures estimate that £100 million of plant and tools are stolen each year.

Whether you’re a sole trader or large construction firm, being the victim of theft can have devastating impacts professionally, financially and mentally.

Traceability matters

So what steps can you take to safeguard your site? The Equipment Theft (Prevention) Bill, which was set out to prevent theft and re-sale of tools and machinery used by tradespeople across England and Wales, brings traceability to the fore. There’s a spotlight on record keeping to mitigate against equipment theft and its subsequent resale.

The regulation stipulates that in order for the sale of certain equipment to go ahead, specific information is required. This includes:

  • Contact details of the buyer
  • Details of the item’s previous purchase
  • The make, model or colour of the equipment
  • Any unique equipment identifiers

Fortunately, most tradespeople record the serial numbers on their equipment, without which it can be substantially more difficult to identify and retrieve stolen goods. However, there are some who still don’t have a full list or know the value of what they own, which could make it difficult to report crimes to the police or track recovered items back to their owners. Tradespeople must remain vigilant when it comes to keeping track of their tools.

When it comes to larger equipment, plant and machinery theft costs an estimated £1 million a week. This is where the CESAR Scheme comes in. Established in 2008, CESAR combines Datatag technologies with visible and covert deterrents to combat theft and aid recovery. 

Once fitted with CESAR it is practically impossible to hide a machine’s true identity and stolen equipment can be instantly traced via Datatag’s 24/7 secure contact centre. As a result, CESAR membership can have a significantly positive impact on insurance premiums.

Over 625,000 machines are now registered and protected with the scheme, as CESAR-marked machines are more than twice as likely to be recovered compared with unmarked equipment.

Tricks of the trade

What makes the situation trickier, however, is that criminals are becoming ever more sophisticated in their approach. Some may even pose as hire companies. One way to prevent any potential issues here is to outline specific arrangements for the collection of plant hire ahead of time.

Criminals are also using drones to pinpoint high value items earmarked for a return when the site is vacant and unsecure. It is crucial to remain aware of who is on site at all times, ensure all documentation is fully checked, and implement adequate surveillance in place to reduce the likelihood of ‘open door theft’.

Keeping construction moving

When theft of tools occurs, it will likely be a total loss to the insured. Often insurers will apply security conditions or parking up conditions to their policies which can be seen as a form of penalising the insured. In reality the opposite is often the case — they will lay out a specific way in which items should be secured when not being used, to minimise the risk of them being stolen.

For larger plant equipment, an indemnity is given for continuing charges as a result of having to rehire a piece of equipment due to damage or theft, which means that work won’t come to a halt on site and contractors can finish the work they were hired to do.

In addition, a two-year ‘new for old’ extension to the contractor’s plant and equipment policy also offers protection against the depreciation of older plant. A lot of insurers only provide one year, however Bletchley typically offers quotes where two years are offered. This, coupled with a 99% inspection rate of items, means that the insured party is kept moving.

Protection in respect of theft and malicious damage should be considered at all times when carrying out work as a tradesperson or contractor. Fortunately, there are partner brokers and insurers that can help.

The Bletchley Group is a partner of the National Federation of Builders and works with an extensive network of market-leading insurers.

To discuss your insurance needs, please call 0121 803 3760 or email info@thebletchleygroup.com