Market data Archives - Page 3 of 19

Strengthening construction safety: The Government’s Green Paper on Product Reform

by Oscar Venus | 28 Feb, 2025 | Market data

As part of the response to the Grenfell Inquiry Report, Government is conducting a review into the Construction Products Regime. The context is described below:

Recommendation 1

That the government draw together under a single regulator all the functions relating to the construction industry to which we have referred. (113.6)

The government accepts this recommendation in principle.

The single regulator will deliver the functions specified in the report with two exceptions. We do not believe it is appropriate for the single regulator to undertake testing and certification of construction products, or issue certificates of compliance, as this would create a new conflict of interest within the regulator. Instead, we will strengthen oversight of Conformity Assessment Bodies through reforms to the construction products regime.

Implementation will start immediately, beginning with work to support the existing regulatory regime as the foundation to moving towards greater consolidation. We are also publishing a construction products green paper alongside this response which sets out our proposals for reform of the construction products regulatory regime and will inform the implementation of this recommendation.

We will publish a Regulatory Reform Prospectus and consultation on the design of the single regulator later this year before bringing forward the necessary legislation to establish it later in the Parliament.

We will go further than the Inquiry’s recommendation by consulting on strengthening the investigation of serious building safety incidents. We will examine all options for going further to ensure serious incidents are investigated quickly and transparently, including a standalone organisation to provide an additional point of insight, evidence and challenge.

Details of the Green Paper are available here – Construction Products Reform Green Paper – GOV.UK

This paper details plans to increase the oversight of testing and conformity assessment bodies, third party product certification schemes and the role of the general product safety regulations in governing construction products not covered by an existing designated standard. The Green Paper also sets in place a consultation process which will last until 21st May 2025.

We would encourage members to respond to the consultation following this link. FIS will be preparing a sectoral response, so do please feed any comments in or or contact jamesparlour@thefis.org to discuss so that FIS can capture your points in thiis response.

Details of the Government Response to the Grenfell Inquiry published on the 26th February 2025 are available here.

Labour availability to constrain output next year

by Clair Mooney | 21 Feb, 2025 | Market data

Workloads reported by FIS members in the FIS State of Trade Survey for the final quarter of 2024 were mixed with just over a quarter of respondents (26%) reporting no changes and 23% seeing an increase of over 5%.

Reports of sales volumes showed that 30% of respondents saw an increase of over 5% quarter-on-quarter and looking to the next quarter (Q1 2025) the expectation for most is very positive with 60% anticipating a growth of over 5%.

Labour availability is the second highest reported factor most likely to constrain output next year (23%) with demand as the highest reported by 45%.

FIS members can access the full findings here.

Inheritance Tax Changes

by Oscar Venus | 14 Feb, 2025 | Contractual and Legal, Employment, Market data

Through construction umbrella body Build UK, FIS, is supporting thecampaign by Family Business UK which is calling on the Chancellor to reconsider the changes to inheritance tax announced in the Autumn Budget, and we would encourage affected members to complete a short survey to help demonstrate the significant impact of the changes on businesses and the wider economy.

With an estimated 4.8 million family‐owned businesses in the UK, the changes to Business Property Relief and Agricultural Property Relief will affect businesses across the country and starve the economy of investment. 81% of construction SMEs are family‐run and by working with Family Business UK we can demonstrate the significant economic contributions that these businesses make and how the changes will not provide the expected tax revenue. The survey should take no longer than 10 minutes to complete, and the deadline for responses is 2 March.

CPA Briefing Paper: UK Procurement Act

by Oscar Venus | 13 Feb, 2025 | Market data

This briefing paper, created by the CPA’s Technical Team, outlines The Procurement Act 2023 and the accompanying Procurement Regulations 2024, which will take effect on 24th February 2025. Together, the Act, the Procurement Regulations 2024, and the National Procurement Policy Statement establish a new framework for awarding public contracts in England, Wales, and Northern Ireland, eliminating the UK’s obligation to adhere to EU Procurement Directives.

Are you an FIS member?

Members can access the Briefing Paper via the button below.

Get the paper

Public Sector Procurement Webinar

A free online webinar will take place on Monday 24 February 11-11.45am to launch CLC’s Public Procurement Guidance – Potential Solutions to Common Evaluation issues faced by Clients in the Built Environment Sector.

Join us to explore the publication with a number of its contributors and to discuss the potential solutions, including:

Isabel Coman – Director of Engineering and Asset Strategy, Transport for London
John Doyle – Director, Business 2 Business Partnering Performance Management Ltd
Fergus Harradence – Deputy Director, Infrastructure & Construction, Department for Business and Trade
Rebecca Rees – Head of Public Procurement, Trowers & Hamlins
Alasdair Reisner – Chief Executive, Civil Engineering Contractors Association
John Simons – Managing Director, SCAPE

Webinar registration is available here.

Clarifying ‘Bespoke’ Construction Products: FIS’s Response to OPSS Consultation

by Oscar Venus | 31 Jan, 2025 | Market data, Membership, Technical

FIS responded recently on behalf of it’s members to a consultation run by OPSS regarding “bespoke” construction products falling under Article 5 of the Construction Products Regulation. The aim of the consultation is to understand if the use of the term bespoke as it pertains to construction products that either cannot be described or are assumed to be exempt from designated standards is clear and appropriate.

We were able to point out a number of areas from our experience with members in areas such as suspended ceilings and heritage plastering where this definition lacks clarity.

Please contact jamesparlour@thefis.org if you have any questions or would like to know more about our response.

CPA highlights what to expect from construction in 2025 and 2026

by Oscar Venus | 27 Jan, 2025 | Market data

Looking to the future, construction is set to bounce back from the obstacles of 2023 and 2024. While recovery is in sight, it’s crucial to grasp the dynamics influencing its speed and shape.

Forecasts suggest a slow but steady rise in construction output, particularly in private housing and repair and maintenance initiatives. Yet, this recovery will be a marathon, not a sprint, due to slower economic growth and less frequent interest rate reductions following the last Autumn Budget. Thus, while the future looks brighter, patience is key.

Notably, the construction sector stands to gain from an influx of infrastructure projects and public non-housing developments. These sectors are set to fuel industry growth in the coming years. A healthy mix of private housing initiatives and public investment will be the engine driving construction forward.

Despite these positive signals, potential risks that could shake these forecasts should not be overlooked. If things go well, sustained wage growth and consumer spending could potentially spur private housing activity. Meanwhile, the Autumn Budget’s government funding could boost affordable housing, educational facilities, and healthcare infrastructure projects.

Nevertheless, caution is advised. The main threats to this optimistic view come from worries about government debt. Any cuts in public sector spending could stunt construction activity. Persistent inflation and high interest rates might also stick around longer than anticipated, dampening the growth outlook.

In summary, although an upswing for the construction industry in 2025 and 2026 is on the cards, the road to recovery is complex. It’s essential for stakeholders to stay alert and flexible, closely monitoring economic indicators and government policy shifts. Armed with a clear understanding of the opportunities and challenges that lie ahead, we can better navigate the changing terrain of the construction sector.

Want to see the full the forecast?

FIS members can access the CPA Construction Forecast – 2025/2026 by signing in using the link below.

Click Here