Adoption of offsite construction is growing, and calls for change – in particular Mark Farmer’s report Modernise or Die – have prompted CITB to publish their research report Faster, Smarter, More Efficient: Building Skills for Offsite Construction.
With offsite construction muddying the waters between manufacturing, construction and engineering, there is a need for change in behaviour, attitudes and greater emphasis on digital skills.
The report identifies the different functions required for successful implementation of offsite, the skills that are needed, the gaps in training provision and what the CITB and industry can do to address these challenges.
Read the full report here, or the summary and action plan here.
Our American counterparts, The Association of the Wall and Ceiling Industry, is also reporting that construction firms on the other side of the pond are getting squeezed by increasing materials and labour costs.
The cost of materials used in construction rose markedly faster than the price of completed buildings, according to a new analysis of federal producer price data released on 14 February, by the Associated General Contractors of America. Association officials cautioned that potential restrictions on the use of imported construction materials threaten to drive-up the price of infrastructure, buildings and new homes and apartments.
“Steep price hikes have hit a wide range of key materials used in construction in the past few months, and contractors have received numerous letters from vendors announcing large additional increases in the next month or two,” said Ken Simonson, the association’s chief economist. “For the most part, contractors cannot pass these costs along on projects already underway, and the data show they are not yet able to price new buildings at a level that reflects their rising materials and labour costs.”
From January 2016 to January 2017, there was a 3.8 percent rise in the producer price index for goods used in construction – the government’s broadest measure of the cost of goods and consumable materials like fuel that go into all types of construction, ranging from highways and other infrastructure to schools, private buildings, apartments and houses. Another government report showed that average hourly earnings for all workers in construction climbed 3.2 percent over the same period, Simonson noted. Meanwhile, the price index for new non-residential buildings – what contractors charge for their work – increased just 1.4 percent.
Among the major contributors to the rise in construction materials costs over the past year were increases in the cost of copper and brass mill shapes (19.9 percent), steel mill products (11.4 percent) and lumber and plywood (3.7 percent). In addition, diesel fuel, which contractors use directly and also pay for through surcharges on the thousands of deliveries to construction sites, jumped by 34.8 percent.
Association officials cited three types of proposals that threaten to drive construction costs even higher: an expansion of restrictive “Buy America” provisions for construction materials to a wider variety of federally funded infrastructure projects; punitive tariffs on imported steel used in many types of buildings; and limitations on Canadian lumber that is commonly used in residential projects.
“If the president and Congress are serious about rebuilding the nation’s ageing infrastructure, the last thing they should do is put in place measures that will needlessly increase the cost of building these projects,” said Stephen E. Sandherr, the association’s chief executive officer. “The best way to rebuild the domestic market for manufacturing key construction materials is to put in place long-term infrastructure funding mechanisms that will reassure manufacturers that there will be steady demand for their products.”
The Construction Products Association has now launched its Procurement Guidance Tool, developed to assist procurers implementing the government’s balanced scorecard approach in construction. The Tool signposts procurers to the different types of evidence that construction product manufacturers can provide in response to procurement questions about a broad range of topics in the balanced scorecard.
This evidence comprises the mature landscape of International and European standards, Publicly Available Specifications (PAS’s), certification schemes and industry initiatives by which the product industry reports its performance. The aim of the Tool is to better align the likely questions that will emerge from procurers as a result of the government rolling out a balanced scorecard approach to all construction, infrastructure, and capital investment projects over £10million. Each new project will need to develop its own balanced scorecard.
Armstrong Ceilings’ annual Grid Off challenge took place at Birmingham’s NEC on 6 April. Of the 18 finalists, 12 companies were FIS members, with New Forest Ceilings just being pipped to the title by Coyle Suspended Ceilings.
Over nine rounds, teams went head-to-head to install a T grid and board-edged 600mm x 600mm mineral tile system in a 7.2m² space to win a pair of Omega Seamaster Aqua Terra James Bond limited edition watches. The runners-up, New Forest Ceilings, won four tickets to watch Anthony Joshua fight Wladimir Klitschko for the WBO super heavyweight world championship at Wembley.
The ceiling installers were shortlisted for their projects as follows:
Bellwood Interiors for new offices in Milton Keynes Carter Ceilings for a new DC Thompson publishing office in Dundee Diespeker (Interiors) for Damers School in Dorchester, Dorset Great Yarmouth Ceilings for Yarmouth Summit offices for start-up businesses Grimes Finishings for the conversion of the former media centre at the Queen Elizabeth Olympic Park John Atkinson Interiors for Headingley Carnegie Stadium in Leeds New Forest Ceilings for Solent University Peveril Interiors for Bingham Methodist Church in Nottinghamshire Taylor Hart for the National Indoor Arena in Birmingham Top Fix Interiors for Wiltshire College, Chippenham SCI for a waste recycling plant in Derby SCL for the Department of Chemical Engineering and Biotechnology in Cambridge
Read more from the day’s event on Armstrong Ceilings‘ live blog: http://www.gridoff.co.uk/
The output of the Scottish economy contracted by 0.2% during the fourth quarter of 2016, according to statistics announced on 5 April by Scotland’s Chief Statistician.
Change in gross domestic product (GDP) is the main indicator of economic growth in Scotland. The latest Gross Domestic Product release, covering the period October to December 2016, shows that total output in the economy contracted by 0.2% compared to the previous three months. On an annual basis, compared to the fourth quarter of 2015, the output of the Scottish economy was flat (0.0% change).
During the fourth quarter of 2016 output in the services industry in Scotland was flat (0.0% change), while production contracted by 0.9% and construction contracted by 0.8%.
Over the calendar year (i.e. 2016 vs 2015), the Scottish economy grew by 0.4%.
Industries which represent a large proportion of the economy or which have big quarterly changes have the most impact on overall GDP. The industry which has had the greatest contribution to change in the output of the Scottish economy in the fourth quarter of 2016 is Production (which accounted for 0.2 percentage points of contraction).
Further to our news article on 1 February ‘Duty to Report on Payment Practices and Performance’, as of 6 April, large companies and Limited Liability Partnerships will be required to start reporting on their payment practices and performance for their next financial year.
“Late and unfair payment terms are a significant threat to small business survival, tightening cash flow and impairing their ability to self-invest and grow. According to BACs, the UK’s small-and-medium sized firms are currently owed £26 billion in overdue payments” writes Small Business Minister, Margot James, in the Telegraph Small Business Connect.
Small and medium sized enterprises (SMEs) make up 99.9% of all UK businesses, creating 60% of all private sector employment. In turn, contributing 47% of all UK private sector turnover. When the UK’s small businesses thrive, the whole country benefits.
As I’m sure you are all aware by now, I, as current President of the FIS, took it upon myself as a martyr to the cause to take a week out of my busy schedule and go to the American drywall and suspended ceilings EXPO (completely funded by my own bank account). And yes, it was in Vegas, and yes, I had a great time. But what did I learn……
Well, our counterparts in the States – the AWCI – gave my wife and I a very warm welcome. The FIS got a mention in the President’s opening speech and the 350 delegates gave us a pleasant reception. During the Expo (which in the Queen’s English is a conference and an exhibition rolled into one) I got to speak to many American contractors, and you know what? Their world is not that different from ours with one large exception; did you know at least 50% of the US drywall / suspended ceiling sectors’ labour force has to be employed via a union! As with all Unions, they have lots of bureaucracy and caveats to how their people are employed! Dismiss one person for being idle and not pulling their weight and you could have a walk-out on your hands! I got talking to a chap called Chip, he said to directly employ a ceiling fixer it costs him $20 an hour. The individual’s actual cost including van, fuel, insurance, health care, pension etc, was $40 an hour. To employ a ceiling fixer in say New York through the union….$90 an hour……Bizarre. I can’t get my head around why the country at the forefront of Capitalism has a union provide its labour!!
Other than that the things we have in common; The subcontractors struggle to get paid from the main contractors…..snap. The subcontractors struggle to get their retention from the main contractors….snap. Programmes are too tight…. snap. And the big one; they have a serious skills shortage. Bingo. Full house. It seems for as long as they can remember they have been reliant on a leaky border with Mexico to supply around 30% of the workforce.
And then the newly appointed President Trump said: “We’re going to build a wall”……. well, what’s going to happen? The Union doesn’t want to put their hands in their pockets, the manufacturers don’t see it’s their responsibility, the subcontractors are all shrugging their shoulders. I told them they were lucky, at least they didn’t have CITB levy on top of all that! The American joke on top of all that is if the wall is going to be bricks and mortar…..they haven’t got enough brickies to build it this side of the next millennium!
The other topic I couldn’t get my head around was Health & Safety. Which considering from the nation that invented “where there’s a blame there’s a claim” their health and safety doesn’t compare to us. Go to the FIS website click on news and take a look at; the best in class, best in show, the US best-selling scaffold. You wouldn’t get as far as getting it out the back of your van over here, no adjustment on the feet, no handrail, no toe boards, manufactured out of steel rather than aluminium and that was the best they had to offer!
So I attended the awards brunch, and to be honest it was a little subdued compared to the razzamatazz of our awards at the Dorchester in June. It was different. But then you must remember the UK is roughly the same size as the state of Florida. The US is made up of 52 States. I’m attending the awards for the best of the best from 52 states. There are 350 people in the hall, of which the half of the attendees living on the east coast actually live closer to me in Birmingham than they do to the other half of the attendees that live in the same country on the west coast. Therefore, half of the room don’t know the other half. Whereas with our little club at the Dorchester there are 480 people, music, lights, applause, and jeers. And we all know somebody, who knows somebody, that can tell us about somebody.
So my day at the exhibition ; If you want to see some of my video blogs of what the hottest things on the US market are, click here for Hilti’s photographic Bluetooth laser measuring device, Hilti’s BIM digital laser measuring scan device (that enables you to mark (or survey) a whole floor of walls and ceilings without having to use a drawing or a tape measure!) safety clips that tie back boards leaning up walls so they can’t fall over. Plasterboard routering device that cuts and folds board with zero dust. Handheld pole sanders with dust extraction. 5ft high stilts. Lorries with Hiab’s on the back that can lift a pallet of plasterboard 8 storeys high and slide the pallet sideways through a window!
One of the things that became apparent during my visit is that unlike here in Blighty the US don’t have installation systems from the manufacturer. It is taken as the norm for an unbranded metal to be installed with a sheetrock (that’s plasterboard to you and me) with an unbranded deflection /fire head detail, with unbranded insulation with unbranded fixings with unbranded joint filler. That’s the norm. Consequently, there is a huge interest from China at the EXPO to get their products into the US market. It’s fascinating, how does the client know what he’s paying for? Have you just installed a pig’s ear or a silk purse? This wasn’t just the walls, it was ceilings as well, especially metal ceilings.
With value engineering in the UK is that something that could happen over here?
So all in all, the trip broadened my horizons. It was informative and interesting and I hope one day that the AWCI president and first lady will attend one of our functions if for nothing else than to watch their faces when one of our Geordie, Scouse, Brummie, Welsh or Cockney members try to converse with them. Because personally, my trip would have only been half empty without my Texan friend Randy who entertained me no end at the awards brunch.
A huge thanks to the AWCI for making me feel so welcome.
April’s edition of the Joint Taxation Committee’s Newsline provides information on the Reverse Charge Consultation. Please email your feedback to Liz Bridge: liz@thetaxbridge.com
A summary of the data from the Markit/CIPS Construction PMI for March revealed that weaker housing activity growth weighed on the UK construction sector.
Other key findings included:
Business activity growth eased in March
Housing slowdown offset rebound in civil engineering and commercial work
Input price inflation slowed further from January’s peak.
FIS president Steve Coley attended the Association of the Wall and Ceiling Industry’s Annual Convention 26-30 March 2017.
Steve represented FIS at the American association’s event and brought us the latest news, products and systems direct from the convention and Intex Exhibition.
Visiting the Intex exhibition, Steve is checking out the latest technology: plasterboard routing and cutting system:
Here is the latest in estimating software:
Steve demonstrates the new Hilti PD-C. The device captures and saves measurement data directly onto digital photographs taken with a camera integrated into the laser range meter.
Here, Steve demonstrates a Hilti Precision Layout Tool (PLT). The BIM drawing is entered, lasers track around the room and the prism detector sends the information back to the pad to allow the track to be set-out correctly.
This is a CGI of how the Americans deliver plasterboard to buildings up to eight storeys high!
The FIS skills team will be showcasing its flagship BuildBack programme at Tyne Metropolitan College’s open day on 10 April. This will provide an opportunity to celebrate the success of the first pilot scheme which has taken place in Newcastle.
The demand for a place on the BuildBack programme has been excellent with more than 30 people applying for the initial 10 places. Trainee selection has now started for the second pilot and the skills team will be looking to extend the scheme to other fit-out skills and to other areas of the country.
Working in collaboration with CITB and in partnership with Tyne Metropolitan College, Jobcentre Plus and Dry Lining & Plastering Training Forum (DLPTF), the programme is designed to provide opportunities for job seekers who are serious about developing a career in drylining. Trainees complete a two-week Specialist Upskilling Programme (SUP) in drylining at Tyne Metropolitan College to develop the skills and competencies required, followed by two weeks’ work placement on-site with a local employer. All trainees will be offered at least one job interview and those who secure full-time employment with an employer will have their fees paid for ongoing training to NVQ Level 2 in drylining. In addition, each trainee will receive free personal protective equipment (PPE) from Encon Group and obtain their CSCS card.
Paul Glover, BuildBack project manager said “Now that the SUP and work experience elements of the BuildBack programme have been completed for the first cohort, I was delighted to hear that one member of the team has already been offered a job with the employer he was placed with. This shows that the BuildBack programme works and I’m now looking forward to hearing how the rest of the of the trainees proceed during the interview stage.”
FIS president Steve Coley and MP for North Tyneside, Mary Glindon, will be attending the BuildBack open day. Along with representatives from our partnerships and local employers, they will experience first-hand the trainees putting their drylining training into practice.
To download the BuildBack brochures and watch the progress videos, click here.
Smart gloves embedded with tiny sensors have been developed by Nottingham Trent University to help protect workers from exposure to vibration. The technology will warn wearers to stop work when a dangerous level of exposure to vibrations is about to be experienced.
Workers most at risk are those who regularly use power tools such as concrete breakers, sanders, grinders, hammer drills and chainsaws. According to the HSE, more than 10,000 claims have been made for vibration white finger and carpal tunnel syndrome over the last decade.
The smart gloves look just like a traditional pair of worker’s gloves and can be washed without any damage to the technology. The vibration sensors are only two millimetres long and are encapsulated and embedded into the yarns which are knitted into the gloves.
Government has issued a consultation proposing to introduce a VAT reverse charge in construction. This will affect many firms within FIS membership and we should respond as soon as possible; it is likely that legislation will be enacted quickly due to the Government’s classification as serious fraud.
We have a short window to influence what will be introduced – the consultation opened on 20 March and will close on 9 June.
It is essential that anyone and everyone who is involved with the accounting for contracts and has any knowledge of VAT, reads the proposals and sends FIS their views and responds to the consultation. We need your views and ideas about which proposals will work and which will be difficult and costly to operate.
This proposal is unlikely to go away simply because we say we do not like it. If it is unworkable, we must make suggestions to make it more workable.
Please follow this link to the government consultation document and also email your comments to FIS: info@thefis.org
As part of a major crackdown by the Competition and Markets Authority, whistleblowers are being offered up to £100,000 for exposing price-fixing in construction.
The reward is being highlighted as the CMA launches its first-ever advertising campaign to stamp out cartel activity.
It applies to all industries, but recent research by the CMA highlighted construction as most at risk to anti-competitive behaviour. The research revealed that 44% of businesses who had been in contact with others in their industry, were in contact in relation to a transaction and approaching one in 10 openly reported that they had discussed prices. This rose to 22% for the construction sector.
Construction also exhibited the strongest signs of anti-competitive behaviour with over two-fifths of businesses feeling they had been disadvantaged through the non-compliant behaviour of competitors.
Businesses found to have been involved in illegal cartels can be fined up to 10% of their annual turnover, while individuals can face up to five years in prison and directors can be disqualified from holding director positions for up to 10 years. These can be reduced or eliminated altogether where a business or individual reports their involvement in a cartel and co-operates fully with the CMA’s investigation.
To report a cartel, email: cartelshotline@cma.gsi.gov.uk or telephone 0800 085 1664 / 020 3738 6888.
Contractor Durkan is holding a free supplier engagement event on 29 March between 10am to 12pm. They are looking to place deals worth £4m with subcontractors and suppliers on its latest mixed use scheme in Aylesbury.
After signing a deal with Aylesbury Vale District Council to build a five storey scheme containing retail, food and beverage outlets, Durkan is looking for firms with experience in: Metsec, screed/render, carpentry, plaster drylining, soft flooring, ceramic tiling and decoration.
The event will take place at The Gateway, Gatehouse Road, Aylesbury HP19 8FF and is free for all attendees.
The CPA has released the updated roadmap showing the progress of the numerous Delegated Acts to the Construction Products Regulation, as at 27 February 2017.
Members should be aware of the following issues and progress of these delegated acts:
• Classification without further testing of external renders and internal plasters based on organic binders, rendering and plastering mortars with regard to reaction to fire
• Emissions of dangerous substances into indoor air linked to construction products
• Resistance to fire performance of construction products
• Delegated decision on the AVCP systems for dangerous substances
A summary of the data revealed that there was a modest rise in construction output, but cost pressures remained at an eight-and-a-half year high. Other key findings were: Solid upturn in civil engineering activity underpins growth in February; House building activity expands at slowest pace for six months; Input price inflation little-changed from January’s peak.
FIS is in the process of producing a new guide to office fit-out and refurbishment. We require images that we can utilise to reinforce the key messages within the guide along with examples of:
– different types of interiors
– mood boards
– concept designs
– schedules
– work in progress
The guide will be aimed at end users, professionals and fit-out contractors, helping to explain the process to clients and demonstrate best practice. If you have any high-resolution images and/or any tips on fit-out and refurbishment that we can use in publicising the guide, we’d be delighted to hear from you.
FIS member Saint Gobain is hosting a free Apprenticeship Levy workshop on 3 March, in Birmingham, on behalf of Supply Chain Sustainability School.
The workshop is targeted to SMEs to aid understanding of the new Levy and its implications for them.
The Government is introducing the new Apprenticeship Levy in April 2017. This has been designed to increase the use of apprentices within business, changing the way
organisations recruit and train their apprentices throughout the construction supply chain.
By attending the workshop you will:
– Hear from CITB on the changes to the Apprenticeship scheme and how they affect you
– Explore the implications for your organisation
– Be able to share best practice with your peers
– Influence the guidance produced by Supply Chain Sustainability School and ensure it is fit for use
The workshop runs between 09:30 – 12:00 at Saint Gobain’s Greenworks Training Academy, Unit 1, Bromford Central, Bromford Lane, Birmingham, B8 2SE.
To book your free place, click here
