Out now: Regional construction hotspots in Great Britain 2023

Out now: Regional construction hotspots in Great Britain 2023

The ‘Regional Construction Hotspots in Great Britain 2023’ report from Barbour ABI and the CPA provides a regional analysis of construction contract awards to signal near-term trends in construction that aren’t always reflected in data at a national level. By analysing the value of contracts awarded last year in local authority regions across the residential, infrastructure and commercial sectors, the report identifies ‘hotspots’ and ‘coldspots’ as pockets of growth or contraction over the next 6-24 months. The report is available now to members, which can be access here.

The Great CAT A debate

The Great CAT A debate

The construction industry is a big contributor of carbon emissions. The industry is also a big consumer of resources – a staggering 60 million tonnes of waste is generated per year. While 90% of wastes are recycled, much gets down cycled as low value applications. The fit-out industry is fast paced and commercial buildings often get refitted every 5-7 years. With every refit, products that are still within their specified service life are disposed of with little consideration for a potential new life.

As we are coming out of the summer, having once again beaten records temperatures around the globe, it is time that we start to embrace new approaches to reduce carbon emissions quickly. Over the last two years FIS has been working with its members to find ways to reduce carbon emissions. Getting out of the take, make, use, dispose cycle and to change the way we operate are becoming more important than ever.

Through this survey, we would like to get your views on whether we can change some of the current practices and we would like to understand what barriers are still in place to enable change. We would be very happy to discuss the questions further if you would like to share more thoughts.

The Great CAT A Debate

FIS wants to hear your views on CAT A fit-outs. Do you think there is a need for them and can they offer a sustainable process?

City of London Corporation publishes new report calling for investment in workers to plug the green skills gap

City of London Corporation publishes new report calling for investment in workers to plug the green skills gap

The City of London Corporation has released a new report urging investment in workers to meet the growing demand for green jobs and skills in decarbonising the city’s commercial buildings.

The report highlights a need for a skilled and diverse workforce capable of constructing, retrofitting, and managing sustainable buildings. The Construction Industry Training Board (CITB) predicts a surge in construction labor demand in Central London, reaching over a quarter of a million by 2027. Additionally, there’s an annual demand for around 35,000 non-construction professionals in the built environment sector.

Over 300 organisations have joined the ‘Skills for a Sustainable Skyline Taskforce,’ including designers, construction firms, and education providers. The taskforce emphasises the urgency of addressing the growing demand for sustainable commercial buildings.

The report recommends reforming the Apprenticeship Levy and s106 policies to match the demand for skilled workers. The current inflexibility of the Apprenticeship Levy and inconsistencies in s106 policies have raised concerns within the sector.

There are six main recommendations for government, training providers and the wider industry to address collectively. These include:

  • Developing new entry-level sustainability training, apprenticeships and upskilling courses for emerging job roles;
  • Working with government to set more ambitious green skills strategies for the built environment;
  • Invest in attracting diverse candidates to a wider spectrum of sustainable roles across the built environment;
  • Creating an easily accessible way to collect and share data on the pipeline of projects and workforce skills shortages, so that the industry can prepare for the emerging skills needs;
  • Built environment organisations should develop an Environmental Social Governance (ESG) strategy to support sustainability operations, retrofit, and skills training;
  • Promote the sector’s role in addressing climate change, with wide-ranging career pathways and diverse role models through positive PR and engagement with schools.

 Chairman of the City of London Corporation Planning and Transport Committee, Shravan Joshi, said:

“The built environment is critical in supporting central London’s transition to a more sustainable economy. Buildings have substantial carbon footprints, so reducing emissions in the sector will be pivotal for addressing climate change. Ensuring technical education, such as through apprenticeships, offers a range of flexible training routes towards new jobs, which will be essential to delivering on sustainability ambitions.

“I would like to personally invite industry representatives to join the Skills for a Sustainable Skyline Taskforce, read the new report and to follow the six recommendations to help us build a more sustainable built environment workforce and reshape the sector.”

The Skills for a Sustainable Skyline taskforce has committed to sustained engagement with the government to promote a reformed Apprenticeship Levy and s106 policy, that is more flexible and meets the needs of employers. It will also promote the delivery of a new National Retrofit and Green Skills Strategy for commercial developments. It will also convene with employers, owners, leaseholders, local government and training providers to explore how they can work collaboratively to promote workforce upskilling, expansion and diversification.

FIS publishes guidance to the Building Safety Act

FIS publishes guidance to the Building Safety Act

The Building Safety Act (BSA) is the most significant piece of new legislation in a generation. It will fundamentally change the way in which buildings where people live are designed, constructed and maintained and records kept of what was built, by whom and how.  The Building Safety Act comprises of primary as well as secondary legislation which has complicated and new responsibilities and processes.  This guide has been written to help introduce the basic concepts of the Building Safety Act to all businesses.

Getting to grips with how circular economy practices can provide solutions

Getting to grips with how circular economy practices can provide solutions

With mounting pressure on the built environment sector to reduce embodied as well as operational carbon emissions, the industry needs to get to grips with how circular economy practices, such as reuse, can provide solutions. The Alliance of Sustainable Building Products (ASBP) is supporting the sector to share knowledge and drive action through the relaunch of its Reuse Now campaign and as part of that its upcoming Reuse Summit event (18 October) which is being hosted in conjunction with FIS.

Aim of the Reuse Now campaign

The aim of the campaign is to increase uptake of the reuse of construction products and materials through:

  • Practical focus by exploring supply chain barriers and develop solutions
  • Open dialogue and sharing of knowledge between reuse material donors/recipients and wider ecosystem to enable greater uptake
  • Learn from what others have done to progress quickly (not everyone doing their own research)

Through connecting and collaborating with others active in the space we want the ASBP to be the ‘go-to’ place for practical guidance and information on the reuse of materials and products in construction.

Supporting the campaign

The ASBP is looking for forward thinking organisations to get involved and sponsor the Reuse Now Campaign and Reuse Summit to enable this work. Benefits of being involved with the Reuse Now campaign include:

  • knowledge exchange and learning
  • thought leadership opportunities and leading by example
  • being associated with sector best practice
  • and being able to input into and have access to research and practical outputs to support your organisation – and the industry – to achieve its Circular Economy and Net Zero Carbon targets.

Get in touch

Please get in touch with debbie.ward@asbp.org.uk or larry@asbp.org.uk if you are interested in sponsoring the Reuse Now campaign or have any questions about our work in this area.

 

The Great CAT A Debate

FIS wants to hear your views on CAT A fit-outs. Do you think there is a need for them and can they offer a sustainable process?

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New procurement rules demand faster payment on major contracts

New procurement rules demand faster payment on major contracts

A new stricter procurement regime is being introduced to support the Government's 2019 Manifesto commitment to ‘..support start-ups and small businesses via government procurement, and commit to paying them on time.... <and> clamp down on late payment more...

European Court of Justice Judgment on free standards

European Court of Justice Judgment on free standards

In a recent appeal heard at the European Court of Justice (Case C-588/21 P), the Court ruled that four harmonized standards form part of EU law and access must be freely available without charge. The Court decided that there is an overriding public interest in free...

CPA Trade Survey reports another mixed quarter for the construction supply chain

CPA Trade Survey reports another mixed quarter for the construction supply chain

The CPA’s latest Construction Trade Survey for 2023 Q2 showed a mixed view on activity across the construction supply chain. Here are some key findings from the latest survey:

Output & Sales: A mixed quarter for product sales, workloads growth for SME contractors and chartered surveyors was split by sector of activity.
Expectations: Manufacturers’ expectations were mixed, new orders increased for civil engineering contractors, SME enquiries increased overall, but growth was driven by a sole sector.
Costs and Constraints: Costs moderated in Q2 but inflation remained broad-based, with issues related to finance and labour availability rising in prominence.

FIS Members - access your copy now

Read the full results from surveys across the construction supply chain by clicking the button below.

Shortlist announced for FIS Scottish Awards

Shortlist announced for FIS Scottish Awards

The FIS Scottish Awards recognise and celebrate the high levels of craftsmanship in the finishes and interiors sector carried out in Scotland. After visiting all projects entered, we are excited to announce that our judges have determined their shortlist.

The standard of entries into this year’s Awards was extremely high, so congratulations to all companies that entered.

Interior Fit Out Shortlist

Scotwood Interiors – Kin & Carta, Edinburgh

Veitchi Interiors – Boclair Academy, Glasgow

Clansman Interiors – Arnold Clark, Glasgow

 

Specialist Installation shortlist – sponsored by Nevill Long

D V McColl – National Robotarium, Edinburgh

Indeglas – Advanced Research Centre, University of Glasgow

Veitchi Interiors – Boclair Academy, Glasgow

Allied Interiors Scotland – NMIS, Glasgow

The winners in each category, along with the architect or interior designer of the winning project, will be announced in front of a packed audience at the FIS Scottish Awards Lunch on 15 September at The Voco Grand Central Hotel, Glasgow.

The event will also see the announcement of the Apprentice of the Year and Lifetime Achievement Award.

CPA publishes summary and guidance papers on Building Safety Act

CPA publishes summary and guidance papers on Building Safety Act

The Building Safety Act 2022 (applicable to England and Wales) introduces the most significant changes for the construction industry in the past four decades. The CPA has been engaging with government for several years on this legislation. CPA has published two papers to offer a summary and guidance to members around key aspects of the Act:

  • The first is a summary and guidance especially as it pertains to duties, obligations and regulations now facing members. Click here to read more.
  • The second offers guidance especially as it pertains to liabilities now facing members. Click here to read more.
Construction product manufacturing costs ease but sales growth remains mixed

Construction product manufacturing costs ease but sales growth remains mixed

The Construction Products Association’s latest State of Trade Survey for 2023 Q2 showed a continued split in performance in the construction product manufacturing industry. Heavy side manufacturers’ sales decreased for a fourth consecutive quarter whereas sales from light side producers registered another quarterly increase, adding to a run of growth that began in 2020 Q3. Forward-looking sales expectations suggest these varied fortunes will persist over the next 12 months.

Rebecca Larkin, CPA Head of Construction Research said:

“The mixed fortunes for heavy side and light side sales growth perfectly illustrates the areas of strength and weakness that are appearing in construction right now. Heavy side sales have no doubt been hindered by the sharp slowdown in new house building and hold-ups in starting large new build commercial and factories projects.”

Taxing issues

Taxing issues

This time of year brings open consultations on the changes the government may introduce next year. The next big thing coming in our direction from the Treasury is a raft of new proposals relating to the use of umbrella companies. If you use umbrella companies, we recommend having a look at the consultation document and adding your voice to the discussion.The consultation is open until 29 August.

In other tax news:

  • HMRC has confirmed that the CIS helpline remains open
  • There is an online guide to check if you can correct a mistake in your VAT return
  • National Insurance numbers can now be saved to and downloaded from the iPhone Apple Wallet
  • Ensure you have the correct classification for diesel cars

Lastly on 18 July, the government released draft legislation for next year’s Finance Bill and introduced consultations on future tax policy changes. These inlcude:

  • Companies: Consultation on merging R&D Tax Reliefs into a single scheme.
  • Plastic Packaging Tax: consultation on using a mass balance approach to determine the amount of chemically recycled plastic in packaging.

Full details on all of the above, plus more is available exclusively to FIS members, here.

 

 

Entry into FIS Innovation Awards now open!

Entry into FIS Innovation Awards now open!

Entry is now open for the 2024 FIS Innovation Awards.

Now in their second year, the Innovation Awards are open to all companies operating in the finishes and interiors sector and focus on ideas that help support improvements in efficiency, productivity, performance, quality or perception of the finishes and interiors sector.

The Award categories are:

  • Product Innovation – Fit-Out
  • Product Innovation – FF&E
  • Digital Innovation
  • Sustainable Innovation

There will also be an overall Innovation of the Year. This will be chosen live by the audience during the awards ceremoney from the winners of the above four categories.

The awards will be judged by a panel of experts and winners will be announced at the FIS Conference, which is taking place during the Workspace Design Show in February 2024.

Entry will close on 31 October 2023. For more information and to enter click here.

FIS Chief Executive Iain McIlwee said:

“There remains a perception that construction is not an innovative sector, our aim with these awards is to debunk this myth and celebrate innovation in our sector across a number of categories. We are looking for innovation that meets a need in the sector and has evidence of adoption or planned use in a commercial environment. So, the successful exploitation of new ideas and bringing creative ideas to life.”

Joe Cilia, FIS Technical Director, added:

“I can think of at least four products which I have seen in the last few years that have been developed by both large and small
organisations based on need to improve quality, address sustainability or save time and I am looking forward to these awards
to be the showcase they need to get to a wider audience.”

The FIS Conference will be a two-day programme on 27-28 February at the Business Design Centre in London. There will be several 1-hour workshops each day, with the winners of the Innovation Awards announced at the Awards Ceremony on 27 February.

More information on the Conference will be available shortly.

CPA Construction Industry Forecast Summer 2023

CPA Construction Industry Forecast Summer 2023

Construction output is forecast to fall by 7.0% in 2023, primarily due to sharp falls in activity in the two largest construction sectors, private new housing and private housing repair, maintenance and improvement (rm&i). Output in the third largest construction sector, infrastructure, has also been revised down again due to government delays to roads and rail projects that will only add further cost to the projects when they return. Construction output is forecast to increase in 2024, by 0.7%, as wider economic growth boosts demand for both new build housing and rm&i activity.

FIS Members can download their copy of the CPA’s Summer Forecast here.

Latest FIS Wage Rate Survey

Latest FIS Wage Rate Survey

To help keep tabs on wage rate inflation, FIS launched in 2021 The FIS Wage Rate Index. The aim of this work is to support contract negotiations and to help track the impact of labour shortage on the cost breakdown of projects.

The survey is conducted every six months and FIS is asking all contractor members to take part. Data is published as a price index to allow for regional rate variations and all company specific data is managed in the strictest of confidence. The survey covers core trade roles, labourers, apprentices and construction and site managers.

THE DETAILED RESULTS OF THE SURVEY WILL BE MADE AVAILABLE EXCLUSIVELY TO CONTRBUTORS.

You can complete the survey via the link here. The survey will close on 21 August 2023. If you cannot complete, please share the link with the person in your business who can.

Your support is, as ever, appreciated.

Morrell and Day Report – recommendations to improve and strengthen the testing regime for construction products

Morrell and Day Report – recommendations to improve and strengthen the testing regime for construction products

The CPA has produced its response to the Independent Review of the Construction Products Testing Regime by Paul Morrell OBE and Anneliese Day KC.  This latest briefing paper outlines how the CPA intends to respond to this report, as well as working with the government moving forward.

The DLUHC-commissioned report sets out recommendations for industry and government alike to improve and strengthen the testing regime for construction products. The uptake of its recommendations will be hugely consequential for safety and improved performance outcomes in construction.

The CPA is asking the government to help address some of the complex challenges facing the construction products industry currently. There are many interrelated issues that we hope can be addressed off the back of this report.

Asks include:

  • That government should respond and support the recommendations listed in the Paul Morrell OBE and Anneliese Day KC Independent Review of the Construction Product Testing Regime, including uptake across industry of the Code for Construction Product Information
  • That government should work with industry to action its recommendations and create a shared roadmap for practical progress, including what constitutes a ‘safety-critical’ product
  • That government move to address and give clarity to the CA Mark issue, ahead of the June 2025 deadline.
Construction trades added to Shortage Occupations List to help ease shortages

Construction trades added to Shortage Occupations List to help ease shortages

As announced in the Spring Budget 2023, five trades will be added to the Shortage Occupations List (SOL) from Monday 7 August ‐ bricklayers, carpenters, plasterers, roofers, and construction and building trades not elsewhere classified (NEC).

This move is significant as it potentially provides access to a controlled immigration process that will support the sector in managing any existing or upcoming shortages in our workforce.

By moving Dry Lining into the Standard Occupation Classification area 5321 (as per FIS recommendation and lobbying work on the SOC), Dry Lining is now also shares skilled worker status with Plastering for the purposes of being a Skilled Worker.

Commenting on the changes, FIS CEO Iain McIlwee stated:

“It is a relief to finally see Dry Lining recognised as both a skilled occupation and also the shortages that we face as a sector.  This is something FIS has been campaigning on for a number of years and I am grateful to colleagues from across the Construction Leadership Council for their efforts in helping to effect this exceptional change and thankful that we now have some movement.  We now need to respond to the detailed review taking place to identify other areas of concern and revisit the sponsor and visa process to better understand any further blockers and issues”.

FIS update Risk Register

FIS update Risk Register

Following recent changes to the Building Safety Act, FIS has updated its Product Process People Risk Register to support members with compliance.

The FIS PPP Risk Register gives people a structured framework to interrogate project risk based on a assessment of severity and probability of a risk occurring.  The standard scoring system helps members to identify any unacceptable high risks and ensure management strategies are put in place to address.  The tool also helps a management team to assign risk correctly and contains a range of links to additional tools and information that will help support specific risk management.

FIS CEO Iain McIlwee said: “A large part of our work centres on interrogating and helping members to manage day to day problems they may encounter, risks.  This is a moving and evolving space.  Our tool helps us to ensure that we are learning lessons and that members are alert to where problems may appear,

Risk is unescapable in any construction project, but at times we can feel so beset by risk that we become indifferent to it.  It is vital that as an industry we get better at measuring, managing and mitigating. This simple tool is built on the premise that if you can’t measure it or didn’t think about it, you can’t manage it. It aims to help people to score risks.  The underlying principle is that  is that we can all learn from our own mistakes, but it is better learn together and avoid learning the hard way wherever possible.”

The FIS PPP Risk Register is available for members to download here

BSI agrees to develop a British Standard for Construction Product Competence

BSI agrees to develop a British Standard for Construction Product Competence

The Building Safety Act states that those working in constructing our homes, offices, hospitals and care homes should provide evidence of their competence to the client to submit as part of the applications to build and before occupation of the buildings.

FIS Technical Director Joe Cilia was the Deputy Chair of the group (WG12) that developed the Built Environment – Proposed construction product competence standard – white paper, who alongside the joint Chairs, Hanna Clarke of the CPA and Douglas Masterson at the GAI developed the white paper alongside a dedicated group of industry experts.

The Standard will help organisations and individuals define people’s functions and introduce levels of competence against the function to track an individuals progression.

 

Consultation on draft regulations to implement the Procurement Bill (Part 1)

Consultation on draft regulations to implement the Procurement Bill (Part 1)

The Cabinet Office is consulting on the secondary legislation required to implement the new public procurement regime set out in the Procurement Bill, including the financial thresholds that will mean contracts need to comply with the regime. The deadline for responses is Friday 28 July.

This is a technical consultation, split into two parts. This first part of the consultation refers predominantly to areas of the Bill which require lists, calculations or further definitions to be used in practice. Questions seek to understand to what extent the draft secondary legislation provisions implement the policy intent as established in the Bill.

The closing date for Part 1 of the consultation is 28 July 2023.

Part 2 of the consultation is expected to launch in July 2023.

FIS Q2 Highlights

FIS Q2 Highlights

The FIS team have been hard at work and achieved some brilliant results across out Technical, Business Development, Skills and Training, and Lobbying efforts. Here’s a short look back at Q2 of 2023

Key technical work

  • Update to workmanship on construction site standards – design and installation of drylining systems (the working group for BS8000 Part 8 was chaired by Technical Director)
  • Working with Imperial college and the Steel Construction Institute testing the impact of building
  • FIS announces updated vetting process aligned to Common Assessment standard
  • Surveyed drylining and ceiling market for Autumn report

Business support and guidance

Lobbying and representation

  • FIS invited to join the new Home Building Skills Partnership Sector Panel (chaired by Matthew Pratt, CEO Redrow)
  • FIS responds to consultation on measuring embodied carbon and carbon leakage
  • FIS met with senior members of Build UK and the Bank of England on a roundtable discussion on prospects and forecasts for UK construction (with input from the FIS Q1 State of Trade survey)
  • FIS joins the RICS Conflict Avoidance Coalition Steering Group
  • FIS responds to Government consultation on payment and retention overhaul
  • FIS responds to RICS consultation on Whole Life Carbon Assessment for the Built Environment
  • FIS takes a lead role in the new HSE campaign about the hidden dangers associated with asbestos

Skills and training

Key Events

  • Contractors Awards Lunch – record attendance
  • Industry Days – Commercial Fit-Out and D&B and Housebuilding
  • Scottish regional event
  • FIS Technical team active at a number of workshops / events at Clerkenwell Design Week
  • FIS supported the Construction Industry’s ‘Inspiring Change’ Conference and Awards
  • FIS Technical Director delivered a speech at the Fire Safety Event at the NEC

Download this document Q2 2023

CPA publishes summary and guidance papers on Building Safety Act

Update to Building Safety Guide

Ahead of the next phase of the building safety regime coming into effect from 1 October, Build UK has updated its guide and timeline to reflect the regulations and supporting guidance that have recently been published. Changes in the July 2023 version of the guide, which is supported by the CLC, include:

  • Clarifying the definition of a Higher‐Risk Building
  • A link to the guidance on Key Building Information (KBI), which can now be submitted as part of the registration process for High‐Rise Residential Buildings
  • Updated information on the new building control framework
  • New guidance on Planning Gateway One and confirmation that hospitals and care homes are excluded from the requirements
  • An updated link to guidance on the Regulatory Reform (Fire Safety) Order.

To ensure businesses across the supply chain are aware of their responsibilities under the new regime, Build UK is sharing its guide through Building Magazine. In an article published yesterday, Build UK Chief Executive Suzannah Nichol explained: “We believe that helping the whole supply chain to see the bigger picture will make it easier for everyone to understand where they fit in and what their responsibilities are…No one company or organisation can do this alone. We talk a lot about collaboration and this really does need a combined effort from Team Construction.”