Construction Payment Consultation Meeting

Construction Payment Consultation Meeting

On the 9 September, FIS hosted a meeting with the Department for Business and Trade to discuss the key elements of the the government’s consultation on late payments and retentions in the construction sector that was launched on 31 July.

FIS CEO, Iain McIlwee opened the meeting explaining that this is a once in a generational opportunity to get genuine legislative support from government as opposed to weakly enforced guidance.  The consultation proposes nine measures to tackle late payments, including a 60-day maximum payment term, mandatory statutory interest, and a ban or protection mechanism for retention clauses.

The aim is to legislate to improve cash flow, reduce disputes and ensure fair payment practices.

Two main proposals for retentions were debated: a statutory ban on retention clauses and a protection scheme requiring retentions to be protected in a separate bank account or insured.

In this discussion it was highlighted that whilst the ban is attractive in principle, concerns were raised about retentions being replaced by expensive bonds and legal loopholes.

The digitalisation of trust accounts combined with automatic release on clearly defined dates associated with completion of works would potentially offer a more cost effective and practical solution.  It was felt that this approach would also encourage clients to consider why they hold retention and how to manage quality and remove those companies that may be holding retention purely to retain working capital and seeking to profit from complexity in the current system

You can see the full session here.

FIS will be responding, but members are encouraged to feed their views into this consultation here

The government’s NEW roadmap for employment law

The government’s NEW roadmap for employment law

The government has released their Employment Rights Bill roadmap – and it includes timelines for consultations and planned implementation dates for big changes.

From Statutory Sick Pay shake-ups arriving in 2026 and day-one unfair dismissal rights landing in 2027, the clock is ticking to get your business ready for the future.

To help you get ahead of the changes our Associate Service Provider Member Citation have shared their latest resources for FIS members to access for free.

  • Employment Rights Bill roadmap: Everything you need to know in one easy to digest timeline. Download your copy here
  • The Employment Rights Bill: Your ultimate guide to the changes: An in-depth overview of the key changes and how to prepare. Download your copy here
  • FREE webinar: The Employment Rights Bill unpacked Webinar: Citation will take members through an in-depth overview of the changes with the chance to ask any burning questions. Register your place here

With more than 300 HR experts, Employment Law solicitors and Health & Safety consultants on your side, Citation makes sure you’re always compliant and confident, no matter the changes coming your way. Their 24/7 support and unrivalled advice guarantee means they’re here to help you navigate any challenges and keep your business running smoothly And, as an FIS member, you can also access preferential rates on new client contracts! Call Citation today at 0345 844 1111 or click here to learn more.

Access the FIS Employment Toolkit

Mandatory Identity Verification for all Directors

Mandatory Identity Verification for all Directors

From this Autumn, it will become mandatory for all company directors and people with significant control (PSCs) to verify their identity to prove who they are. This is a new legal requirement under the Economic Crime and Corporate Transparency Act 2023 to help prevent people using companies for illegal purposes.

Taking action now will help you to avoid delays or complications. If your company has multiple officers, allow plenty of time for each one to verify their identity. Directors based outside of the UK may also need extra time if they plan to use an authorised agent, also known as an Authorised Corporate Service Provider (ACSP) to verify their identity.

You can verify:

  • online using GOV.​UK One Login – if you have the identity documents or information required
  • in person at selected Post Offices – you must live in the UK and will need to use the ‘Verify your identity for Companies House’ service first to find out if you can verify this way
  • using an Authorised Corporate Service Provider (ACSP) – for example, an accountant or solicitor who has registered as a Companies House authorised agent (you’ll need to provide suitable identity documents)

What happens when you verify

Identity verification is a two-step process.

Step 1: Verify your identity and get your Companies House personal code.  This code is personal to you, not the company. Keep this information secure until you need to use it. You can view your personal code in the ‘manage account’ section of your Companies House account.

Step 2: From autumn 2025, link your verified identity to Companies House records.  Information on how to do this has not yet been issued.

The Act gives Companies House the power to play a more significant role in disrupting economic crime and supporting economic growth. Over time, the aims is that the measures will lead to improved transparency and more accurate and trusted information on its registers.

There will also be new responsibilities for:

  • all new and existing company directors
  • people with significant control of a company (PSCs)
  • anyone who files information on behalf of a company

More details can be found here and a guide to changes to Company Law can be found here.

FIS shines a light on bad practice as drylining and plastering contractors face unfair snagging practices

FIS shines a light on bad practice as drylining and plastering contractors face unfair snagging practices

Finishes and Interiors Sector (FIS) is taking a stand against poor behaviour in the supply chain.  Members working in the housebuilding sector have raised concerns about unfair snagging practices on plaster or tape and jointed walls where LED lights are being used at shallow angles to inspect the finish.  

This improper practice whereby the light is shined close to, or directly against the surface of the wall, highlights surface imperfections which are normally imperceptible to the human eye well within tolerance when industry-standard inspection methods are used.   

On launching the campaign, Iain McIlwee, FIS Chief Executive stated: “We often talk about the culture of construction and that means we need to look at all behaviours and the effect they have.  It is clear to us that this over-zealous approach to inspection is creating a lot of bad feeling and straining relationships.    Our belief is that the practice has little to do with quality and everything to do with keeping pressure on the supply chain, making sure sub-contractors are operating under commercial tension.  In the worst of cases it is being used to delay, reduce or withhold payment and with that all the cashflow and mental health issues that plague SMEs in the supply chain. Sometimes problems can be put down to people not understanding the standards and techniques, but in reality, it is often little more than bullying behaviours and has no place in the sector today.”​ 

To tackle the problem head-on, FIS has published new guidance which members are encouraged to download and share with their clients ahead of starting work. This guidance covers how inspections should be conducted and encourages the classification of the flatness of the plastered finish is agreed along with the level of smooth finishes before work starts.   

FIS Head of Technical James Parlour said: “Over the years we’ve tried attacking this problem from purely a technical perspective, but frustratingly people continue to ignore the standards.  Change won’t happen unless we put our heads above the parapet and start to call out bad behaviour.   This latest guidance and supporting resources should help align expectations and inspections to the standards and ensure that we avoid glancing light issues in inspection which exaggerate even the smallest of imperfections. 

We do appreciate that it can be difficult for individual members to do this directly, but we are also asking members to report to us when they encounter these bad practices and we can pick it up as a collective effort. 

So the message is clear, if you are inspecting drylining and plaster finishes, refer to the standards and ensure that your processes are informed, fair and realistic.  If you are a specialist contractor and have experienced unfair snagging practices, don’t just put up with it and move on reach out to us in confidence so we can log cases and start to challenge businesses to improve”. 

Beyond site tension FIS is also concerned the effect bad practices have on those looking to start a career in the sector.  Young people are being encouraged into the industry but when they are faced with this culture and ruthless nature many leave before they have had chance to really see what a good career the construction industry can offer.  We need to create a better culture on site to attract and retain the people we need. 

To support the campaign FIS will be launching a short video to help showcase the problem and is develop new training to support inspections.  You can register on the FIS website to receive free access to the training when it is launched later this summer.    

For more information and to keep an eye on developments visit the FIS Shine a Light Campaign page here. 

To report your experiences, email details in confidence to info@thefis.org or call 0121 707 0077. 

New Chair appointed to lead Conflict Avoidance Coalition

New Chair appointed to lead Conflict Avoidance Coalition

The Conflict Avoidance Coalition has announced the appointment of Richard Bayfield, Vice President of the Institution of Civil Engineers (ICE), as its new Chair. A seasoned professional in construction and engineering, Richard brings decades of expertise to this leadership role.

Established in 2018, the Coalition now comprises around 90 of the UK’s leading professional and industry bodies, including FIS as a Bronze signatory. Its mission is to reduce the financial and relational costs of disputes in construction and engineering by promoting collaborative practices and encouraging widespread adoption of the Conflict Avoidance Pledge.

In his first weeks as Chair, Richard has formed a new steering group to coordinate delivery of the Coalition’s aims and has introduced a written constitution to provide a strong governance framework. These steps mark a renewed phase of activity and impact for the Coalition. Former Chair, Len Bunton, has taken the new role of President of the Coalition

Speaking on the New President, Richard Bayfield said:

“In his former role as Chair Len Bunton has been a tireless advocate for positive change in the industry. Indeed, Len has managed to enthuse a significant array of organisations into joining the coalition. The Steering Group was unanimous in awarding Len the role of President upon his leaving the Chair’s role.

Speaking on his appointment, Richard Bayfield said:

“Conflict Avoidance Processes (CAP) anticipate that conflict is inevitable in any situation involving human activity. Often, small problems are hidden and eventually grow to become too big for the project team to resolve. Decisions are then escalated to a third party such as a judge or adjudicator, at great financial and relational cost to the parties. CAP avoids such risks.”

Martin Burns, RICS representative on the Coalition, welcomed Richard’s appointment:

“Richard has immense knowledge and experience in construction and engineering dispute resolution. His appointment as Chair adds to the Coalition’s status and its growing influence on how employers and suppliers behave towards each other in an industry that has often been damaged by unnecessary disputes.”

In a further development, the Coalition has also launched its new website. Designed as a user-friendly platform, the website will make it easier than ever for businesses and organisations to adopt the Conflict Avoidance Pledge. The new website is a hub for conflict avoidance professionals, providing practical tools and resources to help organisations embed proactive dispute management processes. Visitors to the site are also invited to submit their own conflict avoidance news and events for hosting on the website.

For more information and updates on the website launch, visit conflictavoidance.org.

Steering Group Members
Len Bunton (President)
Richard Bayfield (Chair)
Jeremy Glover (Vice Chair)
Ed Schryver (Vice Chair)
Ian McIlwee (Treasurer)
Sue Barrett
Ashley Belcher
Stephen Blakey
Martin Burns
Julie Forsyth
Ysella Jago
Jim McCluskey