Minimum pay rates for construction site workers will increase by 6% in a two-year deal.

The Construction Industry Joint Council (CIJC) Working Rule Agreement comes into effect on 25th June. Negotiated by construction unions Unite and GMB, the new deal affects more than 400,000 construction workers and will see their basic pay rates rise by 3.2% in year one and 2.9% in year two.

For site workers, there are many positive details in the new agreement: the minimum hourly craft rate will rise to £12.67 in 2019, equalling a wage of £494.13 for a 39-hour week, while the minimum hourly rate for labourers will rise to £9.53, resulting in a weekly wage of £371.67. The agreement covers industry sick pay too: this will increase by 6.1% and the duration of potential benefit increased from 10 weeks to 13 weeks. The Death in Service benefit will be doubled to £80,000.

Jerry Swain, National Officer for Construction at Unite, said: ‘This deal is a strong step in the right direction and will give construction workers a well-deserved pay increase. The increases in allowances and other benefits, underline the value of working under an industrial agreement and being part of collective bargaining arrangements.’

The deal certainly is a step in the right direction which leads to a happier and more productive workforce; however, rising costs mean that construction managers will need to keep on top of budgets more so than ever before. With fluctuating outgoings and varying workloads amid economic uncertainty, they will need to find new methods of simplifying processes, planning more efficiently and cutting spend.

Construct for Sage from Eque2 is a contract management solution that controls your budget, customises information, manages subcontractors and provides accurate client billing. This construction job costing software is perfect for ensuring your Finance and Commercial teams are well informed with accurate and updated records on every contract.

Rising basic rates for construction workers poses an accounting challenge for contractors, but construction job costing software enables you to overcome any difficulty with advanced financial control. Construct for Sage is also available in an express package aimed at smaller construction companies. This flexible accounting solution provides you with the digital tools to manage your business effectively; ensuring your margins aren’t affected by the rising labour costs, giving you increased control of your finances.

To see Construct for Sage in action, register online for one of our live demos; you can see a list of Eque2’s upcoming webinars here. For any queries on Eque2’s range of construction job costing software, please just get in touch.