by Clair Mooney | 22 Jan, 2025 | Contractual and Legal
FIS has updated its guidance on Collateral Warranties, which members can access for free
here..
A collateral warranty is a contract, that is associated with another contract (such as a construction contract, a sub-contract, or design consultant appointment), and is entered into between the person employed under the contract to provide works or services (the contractor, subcontractor or design consultant) and a third party who either has or acquires an interest in the project to which the contract relates.
A collateral warranty is therefore a form of security against the risk that any of the party(ies) between the beneficiary and the specialist contractor becomes insolvent.
by Clair Mooney | 22 Jan, 2025 | Main News Feed, Sustainability
FIS is pleased to be featured as one of the innovative solutions providers in the UK Green Builing Council’s (UKGBC) Trends in Sustainable Solutions Report.
Buildings are a crucial area of opportunity when it comes to environmental and social sustainability, as reflected at COP29 with the launch of the Intergovernmental Council for Buildings and Climate.
In 2024, the new Government accelerated green reforms demonstrating a strong narrative around climate ambitions, particularly in relation to new build and retrofit. Going forward the hope is this narrative crystalises into tangible and robust policies, importantly as the UK’s Climate Change Committee’s new Progress Report saw buildings emerge as a priority item on the agenda putting them in the focus for decarbonisation efforts.
However, this is a steep challenge as the industry needs to almost halve its emissions by 2030 (compared to a 2018 baseline) and decarbonise fully by 2050, while addressing other areas of sustainability, including enhancing resilience, social value, health & wellbeing, nature & biodiversity and reducing resource use. Meeting this challenge not only requires innovation in technologies, business models and ways of operating, but also increased and more strategic implementation of existing sustainable solutions.
FIS Sustainability Lead, Flavie Lowres said:
Sustainability is finally moving at pace, but it is still hard to define what needs to be done. This UKGBC report turns theory into practical applications by providing a list of example solutions/initiatives. It is great that UKGBC has picked up on our FIS Reuse Initiative – it shows we are moving in the right direction and asking the right questions.
This report summarises a range of sustainable solution trends that UKGBC has seen over the course of 2024, provides context on their use, and comments on the relevant driving forces in the UK market. The solutions discussed range from innovative new platforms and materials to transformative business models and processes. The analysis is based on engagement with innovation-focused UKGBC members (including input from UKGBC’s Solutions & Innovation Advisory Group), interviews with UKGBC topic leads, and desktop research.
by Clair Mooney | 17 Jan, 2025 | Contractual and Legal
FIS has produced guidance to support members in identifying and responding to onerous contractual terms. Prepared for specialist contractors, it is a summary of the typical risks and industry recommended compromises to look out and negotiate when engaging in a contract with clients or main contractors.
The guidance supports the FIS Responsible No Campaign, which is a targeted approach from FIS to challenge negative behaviours and empower the supply chain to challenge situations where the transfer of risk through contract is not reasonably apportioned or clear.
Whilst FIS continues to recommend members use and work on unamended contracts (rationale set down in our guidance published last week – Using Standard Form Contracts). However, the Responsible No Campaign approach recognises that we have some way to go and attempts to bring more standardisation where amendments are inevitable based on industry compromise position recommended by a relevant authority. This is what this document helps our members do.
by Clair Mooney | 16 Jan, 2025 | Employment
Members will be aware that from 1 April 2025 the changes to employers National Insurance Contributions will be implemented. Measures include:
- Secondary Threshold, currently set at £9,100 a year, and will be reduced to £5,000 a year
- Increases to the secondary Class 1 NICs rate from 13.8% to 15%
- Increases to the maximum Employment Allowance from £5,000 to £10,500
- The restriction that currently applies to the Employment Allowance where employers who have incurred a secondary Class 1 NICs liability of more than £100,000 in the tax year immediately prior to the year of the claim are unable to claim it — this means all eligible businesses and charities will be able to claim a greater reduction on their secondary Class 1 NICs liability, irrespective of what their secondary Class 1 NICs liabilities were in the tax year prior to the year of the claim.
There is a useful calculator here to help work out the increase: https://zelt.app/blog/how-to-calculate-employers-ni-employer-s-ni-calculator-2024-2025-2026/
Salary Sacrific
A Salary Sacrifice scheme can help reduce NI costs for both employers and employers. If you are not already offering Salary Sacrifice, it is something worth considering – only 41% of small and medium enterprises offer salary sacrifice, compared with 85% of large organisations.
A salary sacrifice arrangement, which is Government backed, is an agreement to reduce an employee’s entitlement to cash pay, usually in return for a non-cash benefit. An employee agrees with their employer to give up part of their salary in exchange for non-cash benefits, the most common of these being pension contributions.
This means that the employee’s gross salary is reduced by the amount they sacrifice. The result is lower National Insurance contributions for both the employee and employer. For example: £5,000 paid through salary sacrifice into a pension would save an employer c.£750 at the April 2025 NI rate and the employee would not paying tax or NI on the amount sacrificed.
As an employer, you can set up a salary sacrifice arrangement by changing the terms of your employee’s employment contract. Your employee needs to agree to this change. If your employee wants to opt in or out of a salary sacrifice arrangement, you must alter their contract with each change. This can be done by way of a Variation to Contract letter. Your employee’s contract must be clear on what their cash and non-cash entitlements are at any given time.
You can find out more information on the government website.
by Clair Mooney | 16 Jan, 2025 | Employment, Sustainability
New commercial food waste legislation comes in to force in the UK from the end of March 2025. This is part of Defra’s simpler recycling plans that aim to improve recycling rates, simplify waste management, and benefit the environment. It means that from this date businesses with 10 employees or more will have to separate food waste from other rubbish streams. Companies must store food waste in separate bins and arrange collection by licensed waste carriers.
The new default requirement for most workplaces will be four containers:
- residual (non-recyclable) waste
- food waste (mixed with garden waste if appropriate)
- paper and card
- all other dry recyclable materials (plastic, metal and glass)
Mandatory food waste separation aims to ensure less waste food makes its way to landfill sites and is instead disposed of responsibly.
by Clair Mooney | 10 Jan, 2025 | Employment
The Construction Industry Joint Council (CIJC) has published the 2025 holiday entitlement with guidance on annual and public/bank holidays that apply under the CIJC Working Rule Agreement. There is an additional paid day’s holiday to bring the Working Rule Agreement in line with other industry agreements, taking the annual entitlement to 23 days plus eight public/bank holidays per year.
by Clair Mooney | 10 Jan, 2025 | Main News Feed
Through our umbrella body Build UK, FIS is supporting Family Business UK’s calls for the Government to consult on the changes to inheritance tax announced in the last Budget.
In an open letter to the Chancellor, 32 trade associations have warned that changes to Business Property Relief and Agricultural Property Relief will affect businesses across the country, including those in construction, and starve the economy of investment.
by Clair Mooney | 10 Jan, 2025 | Payments
Changes from January 2025 Reporting on Payment Practices
Under the Reporting on Payment Practices and Performance (Amendment) Regulations 2024, new reporting requirements have been introduced for companies in scope of the reporting requirement. These new requirements will apply in relation to each financial year of a company beginning on or after 1 January 2025.
These new requirements relate to:
- the sum total of payments made during the reporting period
- the percentage of payments that were paid during the reporting period which were not paid within agreed terms because of a dispute
The Government has stated their intent to further crack down on payment concerns by extending the requirement to report. In 2025 further secondary regulation is planned to bring in additional requirements to report on value of invoices outstanding and, for construction firms, their practices, policies and performance with respect to retention clauses in any qualifying construction contracts with suppliers.
More information here
Changes to company size thresholds
The Government has also published The Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations, which amend the criteria for determining if a company is classified as a micro‐entity, small, medium or large business for reporting and audit requirements under the Companies Act.
In an effort to reduce reporting burdens on companies, from 6 April 2025, the turnover and balance sheet thresholds for micro‐entities, small and medium businesses will increase by approximately 50%, and companies that move down a size category will be entitled to the accompanying reduction in reporting and audit requirements. The regulations also remove the requirement for companies of all sizes to include specific information on the employment of disabled persons within their directors’ report.
by Clair Mooney | 9 Jan, 2025 | Main News Feed
The Government has published the Procurement Specific Questionnaire for use by public sector clients under the Procurement Act from 24 February 2025, which confirms that the Common Assessment Standard, developed by Build UK, should continue to be used for pre‐qualifying suppliers for ‘works’ contracts.
This is consistent with the position under PPN 03/24 and the Procurement Specific Questionnaire specifies at paragraph 45 that “public contracts for works should continue to use the questions set out in the Common Assessment Standard…and where possible, contracting authorities should avoid requiring Common Assessment Standard certified suppliers to re‐input their information”, which will reduce duplication for the supply chain even further.
The Common Assessment Standard has two levels of certification ‐ desktop and site‐based ‐ and companies can apply to any one of the Recognised Assessment Bodies for the appropriate level depending on their trade, size and the requirements of their clients.
To find out more about the Common Assessment Standard click here
FIS is encouraging members to advertise their support for the Common Assessment Standard and adopt a Responsible No when asked to complete multiple PQQs. We accept that this is difficult in a commercial tender situation and time is often too tight, but we have prepared a short email that we suggest our members send to their client to help raise awareness of the efficiencies that the Common Assessment Standard brings. This email template is available here Common Assessment Standard Template Email.
If companies are failing to adopt the Common Assessment Standard, please Complete the FIS Whistleblowing form here and we will follow-up independently. (All information will be treated in the strictest confidence ensuring no member is named or disadvantaged in any way by our follow-up).
by Clair Mooney | 9 Jan, 2025 | Market data
At a headline level, it was a mixed third quarter for firms in the construction supply chain.
Construction product manufacturers reported a second quarter of growth in sales volumes, although for the heavy side, sales remained lower than a year earlier. Civil engineering contractors reported an increase in workloads, marking the sixteenth quarter of growth. The strength in infrastructure has been echoed by chartered surveyors throughout this period and in Q3, was the primary driver of their workloads growth. Surveyors also reported very early signs of a recovery in private housing, commercial and public non-housing workloads, although public housing remained a sector in decline. It was a difficult quarter for SME contractors, however, with a fall in workloads reported across all sectors of operation: new build housing, repair, maintenance and improvement (RM&I) and industrial/commercial. A fall in enquiries across all three sectors was also reported, suggesting that the recovery in construction will materialise slightly later into 2025 than previously expected. Further interest rate cuts are widely expected next year, underpinning hopes that the pickup in mortgage lending since Summer will continue into the key Spring selling season and support house builder confidence, as well as drive an increase in property transactions for existing homes that then lead to improvements work. Consumer confidence will be key, however. With no direct impact on personal finances or taxation in the Budget in October, measures of consumer confidence showed some improvement towards the end of 2024. in contrast, the Chancellor’s increase in employers’ National Insurance Contributions and increase in the National Living Wage, both coming into force in April, have been flagged as a significant cost pressure for businesses. A broad base of cost pressures was already reported in Q3, led by wages and salaries for manufacturers, raw materials for SME contractors and 40% of civil engineering contractors reported annual cost increases of more than 5%. The extent of passthrough into client and end user costs is a clear risk to the speed of the construction recovery, whilst the impact on other sectors of the economy such as retail may lead to a fresh deterioration in consumer and household confidence and spending.
by Clair Mooney | 9 Jan, 2025 | Technical
The Office for Product Safety & Standards (OPSS) has commissioned the Centre for Strategy & Evaluation Services (CSES) to conduct a study to develop its evidence base on “bespoke” construction products.
This research will review current practices regarding the interpretation of the term bespoke and assess how these practices align with the existing regulatory framework (i.e. products falling under Article 5 of the Construction Products Regulation). This research will form a baseline, on which future research proposals, focusing on different aspects of the construction products’ supply chains, are expected to be developed.
Through our membership of the Construction Products Association FIS Members are invited to participate in a survey, which should take no longer than 10-15 minutes. https://eu.mar.medallia.com/?e=431068&d=e&h=2236FDFC25497DC&l=en
The deadline for response is 17 January 2025.
If you have any questions, please contact the CSES Project Manager, Rocio Salado at the following address: rsalado@cses.eu
by Clair Mooney | 9 Jan, 2025 | Building Safety Act, Contractual and Legal, Insurance
Establishing clear contractual arrangements from the outset of any construction project is critical. This is a core conclusion from virtually every review of the construction sector. As far back as 1866, The General Builders Association put out the following statement:
“It is not right to bring under the builder’s consideration legal conditions, the effect and value of which he cannot rightly estimate without consulting it’s solicitor”.
JCT was established nearly 100 years ago to address concerns and help create a standard set of terms. These contracts address the complexity of multi-tier supply chains, mutually dependent relationships and different parties joining the contractual chain at different times. Other standard form contracts, such as NEC, are now commonplace. Yet recent research from Reading University into Procurement and Contracting Practices in the Finishes and Interiors Sector highlight that 64% of businesses in the supply chain regularly start a project without a contract in hand and the norm is to work on amendments that effectively bespoke relationships and seek to pass down unreasonable amounts of risk.
It is this culture that the Duty Holder Regime (now enshrined in the Building Regulations) seeks to address and puts under additional scrutiny attempts to shift risk through contract. This change to law potentially resets legal precedence for passing down risk. Significantly too, recent advice from the Construction Leadership Council (CLC) should not be dismissed as a token effort to restate the problem. The Grenfell Inquiry made clear the risks in the following finding:
“Studio E (Architect), Rydon (Main Contractor) and Harley (Cladding Specialist) all took a casual approach to contractual relations. They did not properly understand the nature and scope of the obligations they had undertaken, or, if they did, paid scant attention to them.
They failed to identify their own responsibilities for important aspects of the design and in each case assumed that someone else was responsible for matters affecting fire safety. Everyone involved in the choice of the materials to be used in the external wall thought that responsibility for their suitability and safety lay with someone else.”
In a rare open Statement, the CLC highlights another serious concern that all in the supply chain (particularly clients) need to be alert to:
“Many Professional Indemnity Insurance policies only cover claims for contractual liabilities to the extent that those liabilities would exist in the absence of the contract. … Clients have no control over whether contracting parties can secure PII cover that will respond when the client suffers a loss and wants to recover that loss.”
In plain terms CLC has made it clear:
“if a client seeks to claim for loss or damage, it cannot be relied upon that it will be settled by the PII insurers, and the consultant/contractor potentially faces financial ruin, and the client left with a claim that cannot be recovered.”
To help members bring these points together, improve understanding of where and how template contracts can and should be amended, highlight areas of particular concern and support negotiations with clients FIS has produced a new Using Standard Form Contracts. This has been made available to FIS Members through the Contractual and Legal Toolkit and has been designed to support the Responsible No Campaign.
Blog post written by Iain McIlwee to launch new FIS Factsheet: Using Standard Form Contracts.
by Clair Mooney | 9 Jan, 2025 | Ceilings, Skills
FIS is working with the National Construction College (NCC) Bircham Newton to deliver the Interior Systems Installer Apprenticeship – Ceilings pathway.
Interior System Installer (Ceilings and Partitions) Apprenticeship
The Interior Systems Apprenticeship (Ceilings and Partitions) has been developed by employers and approved by the Institute for Apprenticeships and Technical Education (IFATE). The Ceiling and Partitions pathway incorporates different ceiling and partition systems within a building.
Programme outline:
- Start date: February 2025 – (dates are flexible)
- 24-month programme
- 9 x 2-week immersive training blocks delivery by industry experts
- Workplace coaching sessions every 10 weeks support you and the apprentice to implement their new skills and knowledge
- 3-month end point assessment window includes a knowledge test and practical observation and questioning
National Construction College are also able to offer:
- Meet (virtual or face to face) with members to discuss and shape the programme in greater detail
- Set up a Webinar where NCC can share a virtual tour of Bircham and its facilities and answer any questions
- Facilitate a site tour of Bircham in person to any members and/or potential apprentices
If you are interested in taking on apprentices in this subject, or would like to find out more, please get in touch with marieflinter@thefis.org
To find out more about the standard and what the training entails click here.
by Clair Mooney | 9 Dec, 2024 | Building Safety Act, Employment, Skills
The Industry Competence Steering Group (ICSG) has announced a comprehensive restructure to enhance competence and safety standards across the built environment. Established in response to the Grenfell Tower Fire and subsequent Hackitt Review, ICSG has now transitioned to become a formal working group of the Industry Competence Committee (ICC) under the Building Safety Regulator (BSR), signalling a strategic shift towards more rigorous industry-wide competence frameworks.
“The new relationship between the ICC and the ICSG is key to transforming the competence of the industry. ICC aims to set expectations for industry and challenge it. The ICSG is where industry can collaborate to meet those challenges. The ICSG also provides the ICC with a clear picture of what industry is doing, feeds back on what challenges industry is facing, and which levers can be pulled to improve competence. We are able to work together on developing solutions and aim to provide clear messages and guidance for the industry and the public about competence,” commented Hanna Clarke, Co-Chair of the ICSG and Digital and Policy Manager at the Construction Products Association.
ICC and the ICSG relationship
ICSG purpose
ICSG was set up to enable culture change in relation to competence across the built environment. It does this by providing the UK built environment industry access to appropriate competencies, so they may safely contribute to the creation and use of built environments and can demonstrate their competence to others.
ICSG structure
The Industry Competence Steering Group (ICSG), formerly known as the Competence Steering Group, is Co-Chaired by Hanna Clarke and Gill Hancock, Head of Technical Content at the Association for Project Management.
Under its new chairs, the ICSG has restructured. This will better cover the built environment’s disciplines and support existing work across the industry.
The new structure includes sector-led groups, key topic groups, and working groups. They currently bring together contributions from over 60 professional and trade bodies and 1500 individuals in the built environment, with membership of the sector led groups still growing.
These groups will produce competence frameworks mapped to the BS 8670 series. They will also create guidance and implementation programs to enable culture change in relation to competence across the built environment. Another key role of these groups is to provide forums for industry feedback relating to the understanding of legislation and barriers to its implementation.
ICSG is working with the BSI to create a communications hub. It will be a central repository of all ICSG’s work for the industry to access. More information on this and the competence frameworks will come in Spring 2025.
ICSG’s focus is to keep people safe through competent practices and ethical behaviours throughout the built environment. Central to this is enabling collaboration and ongoing sharing of best practice, learning, and resources to support continuous improvement in industry competence. ICSG closely collaborates with the BSI and its committee CPB/1 – Competence in the Built Environment, contributing to many of the standards that are in development. It also has a strong relationship with the Construction Leadership Council, both with their contributing to the work on competence and in the aim to join up the competence work with the other industry initiatives that the CLC is leading on.
“The ICSG has end to end coverage from construction products to demolition and disposal, including in occupation. By collaborating with both industry and the Building Safety Regulator we believe we can enable real culture change, in relation to competence, across the built environment,” said Gill.
If you are interested in helping shape competence frameworks and guidance within your sector or want to find out more about the ICSG, please contact the relevant sector group lead (see appendix 1).
Iain McIlwee, Chief Executive at FIS, said: “This is the next stage in what is undoubtedly the biggest collaborative effort I have witnessed in construction, apart from the COVID response. It has been both rewarding and encouraging to be involved and take a lead on behalf of specialist trades through the Super Sector work. We have learned so much from this process, and I applaud the visionaries who have led it. Great work has been done within the various disciplines, and the next stage is very much about bringing it together and ensuring that it is peer-reviewed effectively and with empathy by the wider supply chain. This will ensure that as we implement it, it is coordinated, proportionate, and ultimately supports a better construction process.
“We look forward to the next stage of collaborative working and supporting the next iteration of this essential work.”
by Clair Mooney | 5 Dec, 2024 | Skills
FIS and Worshipful Company of Plaisterers have announced the winners of the sector Training Awards at its gala lunch held at Plaisterers’ Hall in London today.
In front of a packed audience at Plaisterers’ Hall, the winners of the 2024 Training Awards were announced and presented by Guest Speaker and TV personality Mark Millar.
The Awards are a collaboration between FIS and The Worshipful Company of Plaisterers to recognise outstanding apprentices and students, and individuals and organisations that have made a lasting contribution to training and development in plastering and interior trades. Also recognised were the Rising Stars of our sector and a Lifetime contribution to skills and training development.
James Minett, Master of the Worshipful Company of Plaisterers, said “The Company is absolutely delighted to once again host these prestigious awards in our magnificent Hall. We are very pleased to have once again teamed up with FIS to recognise the achievements of many within plastering and the finishes and interiors sector”.
Commenting on the awards, FIS President Ian Strangward said: “I congratulate all the amazing people shortlisted today. It is a good choice to join this rewarding sector and well done on your achievements to date”
The 2024 award winners are:
Our thanks go to our awards and event sponsors British Gypsum, Saint-Gobain Formula, The Plaisterers Charity and CITB.
by Clair Mooney | 3 Dec, 2024 | Contractual and Legal, Payments
Healthy cash flow is critical for small business’ survival and growth. Late and long payment times disrupt the cash flow cycle and can prevent a business from paying its bills, eventually leading to business failure. In 2023 15% of small businesses and medium sized enterprises cited cash flow and late payments as an obstacle to running their businesses.
The new Fair Payment Code has been launched to encourage businesses across the UK to pay promptly. Businesses may now apply for the Award tier that best suits them: Gold, Sliver or Bronze. The tiered system of Awards is aimed at awarding best practice and driving improvements in payment performance. The three Award tiers are:
- Gold Award – for those firms paying at least 95% of all invoices within 30 days
- Silver Award – for those paying at least 95% of all invoices within 60 days, including at least 95% of invoices to small businesses within 30 days
- Bronze Award – for those paying at least 95% of all invoices within 60 days
In addition, every business granted an Award agrees to abide by the Code’s principles of being Clear, Fair, and Collaborative with their suppliers.
The new Fair Payment Code replaces the Prompt Payment Code. It will be more aspirational by supporting businesses that wish to improve payment practices and helping them move up from Bronze to Silver, and to Gold over time.
The Fair Payment Code Awards are for two years, and every business will need to reapply for their Award at the end of each two-year period. There will also be a robust complaint system in place for businesses to highlight to the OSBC those not meeting the requirements of the category of their Award (Gold, Silver, or Bronze) or not following the principles of the Code.
Businesses can now apply of any Award level of the new Fair Payment Code.
Len Bunton, Owner of Bunton Consulting and FIS resident QS said:
“The Fair Payment Code will be welcomed by the construction industry as it focuses on prompt payment. The introduction of measures to reward businesses for adopting fair payment practices with their suppliers is also a major step forward. It is important to highlight the emphasis on establishing clear and fair payment terms in writing before work begins, and further, that suppliers are made aware if payment is likely to be delayed.
“The Code emphasises fairness and collaboration, with transparency being a key factor as well.”
Small Business Minister Gareth Thomas said:
“Late payments cost businesses tens of thousands of pounds and is one of the biggest reasons businesses collapse and today’s measures look to tackle the issue head on.
“This government’s primary ambition is clear: to go for growth. To do that, we must unleash the potential of our entrepreneurs.”
Liz Barclay, Small Business Commissioner added:
“The Fair Payment Code is our response to all those suppliers who begged for a more aspirational, robust and ambitious approach to changing the business to business payment culture in the UK. It also gives a clear signal of intent on the part of Government.
“We want suppliers paid within 30 days with payment beyond the due date a rare event. We want longer contractual payment term to be recognised as potentially detrimental to vital supply chains. We want businesses of all sizes to commit to fair and quick payments and to avoid harmful disputes. This new Code will drive a better payments culture and benefit everyone.”
For any immediate questions, head to the FAQs page at www.smallbusinesscommissioner.gov.uk/fpc Or you contact the Small Busness Commissioner directly via email at fpc@smallbusinesscommissioner.gov.uk.
by Clair Mooney | 3 Dec, 2024 | Building Safety Act
The Ministry of Communities and Local Government (MHCLG) has today published the Remediation Acceleration Plan.
The aim of this plan is that by the end of 2029, all 18m+ (high-rise) buildings with unsafe cladding in a government funded scheme will have been remediated. Furthermore, by the end of 2029, every 11m+ building with unsafe cladding will either have been remediated, have a date for completion, or those responsible will be liable for severe penalties.
Key measures in the plan include:
- action to identify buildings needing remediation through a review of 175,000 building records by the end of March 2025;
- the intention to introduce new legal duties on those responsible to take action and make their buildings safe;
- metro mayors convening regulators and preparing joined-up local plans to drive remediation in their areas;
- additional funding and guidance for regulators to intensify enforcement activity;
- new enforcement measures to hold those responsible to account;
- a joint plan with developers, published today, to fix buildings faster covering over 95% of buildings to be remediated by developers;
- action to begin accelerating remediation of social housing while working with the sector to announce a long-term strategy in Spring 2025;
- supply chain support to facilitate delivery as remediation pace increases;
- information on how those responsible for the building safety crisis will be held to account;
- the extension of the Waking Watch Replacement Fund until the end of March 2026; and
- further measures to ensure that residents are supported and protected throughout the remediation process.
The plan also confirms the introduction of a Building Safety Levy on new residential developments which will raise around £3.4 billion for remediation. The intention is for the levy to come into force in Autumn 2025.
In addition, a further consultation starts today to consider how to ensure that leaseholders are only charged a fair and transparent insurance fee for work done to arrange insurance. The consultation closes on 24 February 2025.
Finally, in relation to product manufacturers, action will be taken to ensure that those involved in the Grenfell tragedy will be excluded from government contracts. It also commits to system-wide construction products reform, including proposals on liabilities, robust sanctions and penalties against manufacturers.
Below are a number of additional documents from the gov.uk website on the same topic which were released on 2 December 2024.
by Clair Mooney | 21 Nov, 2024 | Sustainability
On 30 October 2024 the Government issued its response to the consultation on the introduction of a UK Carbon Border Adjustment Mechanism (CBAM). CBAM will ensure that UK decarbonisation efforts lead to a true reduction in global emissions rather than simply displacing carbon emissions overseas. It will place a carbon price on goods that are at risk of carbon leakage imported to the UK on carbon intensive sectors, such as aluminium, cement, iron and steel. The UK CBAM will come into force on 1 January 2027. Businesses importing £50,000 or more of CBAM goods over a 12-month period will need to comply with the UK CBAM.
The glass and ceramics sectors are not in scope for this deadline to allow government and industry time to address feasibility concerns raised throughout the consultation process. It is likely that those will be included at a later date.
More details can be found here: Government Response
If you would like to join the CBAM mailing list to stay informed of policy developments please contact cbampolicyteam@hmrc.gov.uk
by Clair Mooney | 21 Nov, 2024 | Main News Feed
The Procurement Act 2023 and the supporting Procurement Regulations 2024 come into force on 24 February 2025. The Act, along with the Procurement Regulations 2024 and the National Procurement Policy Statement provide a new regime for awarding public contracts in England, Wales and Northern Ireland ending the obligation for the UK to comply with EU Procurement Directives. The Scottish Government has opted not to join the rest of the UK having transposed EU Directives into their own statute book. However, the Act does apply to contracting authorities in Scotland which are either cross-border bodies or exercise wholly reserved functions.
The reforms open up public procurement to new entrants such as small businesses and social enterprises so that they can compete for and win more public contracts. The Act also embeds transparency throughout the commercial lifecycle.
The Procurement Regulations 2024 is secondary legislation which applies a broad range of powers within the Procurement Act 2023 providing additional details concerning various aspects of the new procurement regime.
The National Procurement Policy Statement (NPPS) is a statement published by the Government to communicate to contracting authorities policy objectives relating to public procurement. Contracting authorities must have regard to such a statement when they are carrying out a procurement. This guidance provides some explanation about the duty. The current NPPS has been withdrawn and is currently being redrafted. To read more about the NPPS please click here.
The Procurement Act will govern new procurements started after 24th February 2025. Procurement commencing prior to the Act coming into force will continue to be governed by the current regime meaning that two regimes will run parallel for some time.
To view the Procurement Act 2023 please click here.
To view the Procurement Regulations 2024 please click here.
by Clair Mooney | 18 Nov, 2024 | Market data
The headline results for the State of Trade survey continued to signal signs of improvement for construction product manufacturing in the third quarter of 2024. Compared to Q2, product sales volumes increased for both heavy side and light side firms, on balance, for 55% of the heavy side and 8% on the light side. Comparing sales volumes with the same period of a year earlier, 27% of heavy side manufacturers still reported a fall, whilst a balance of only 8% reported an increase on the light side. These dynamics mirror those reported in official ONS construction output data, with monthly and quarterly increases in activity over Summer, but activity still lower than a year ago.
FIS members can download the full findings from the CPA State of Trade survey here.
