NHP Market Update

NHP Market Update

The New Hospital Programme is holding an Autumn Market Update on Thursday 9 November from 11:00am to 5:00pm in London and online.

The market briefing will be a chance for Industry to hear about Programme developments and its approach to delivery with further details to be shared around key strategic areas of the Hospital 2.0 standardised design approach, the Programme Digital Strategy, and the overarching Commercial approach.

You can register your interest here, with in‐person places limited to one per organisation.

 

FIS launches contract review service

FIS launches contract review service

As part of our service offering, FIS provide a contract, QS and legal helpline service.  Demand for this helpline has increased in recent months and concerns have been highlighted related to the level of risk (particularly around design and delay associated with the new regulatory environment) being passed through the supply chain.  In response to this we have identified the need to introduce a new FIS Contract Review Service.

Unlike the helpline, which reacts to member enquiries once a problem has been identified, the contract review service provides pro-active support that will seek to identity onerous contract clauses before work starts, thus seeking to avoid contract issues further down the line.

The subsidised service will be staffed by a panel of four experts, and it will be the member’s choice as to which panel member they choose.  The starting price will be £450 for an initial review and written summary and an additional £150 if a virtual meeting is required to go through the contract in more detail.  Prices will be tiered around size of contract.

The panel will use the collective wisdom generated through this work to isolate trends, identify onerous clauses and update on the state of the contractual market for regular reporting purposes. They will offer guidance to FIS and its membership, through a series of advisory articles.  This work builds on our ongoing commitment to support the RICS Conflict Avoidance Process (more details in our Legal and Contractual Toolkit) .

Speaking of the new service, FIS Chief Executive Iain McIlwee said:

“This new service has been developed in response to the procurement research we did earlier in the year that identified that specialist contractors often find themselves under significant pressure to sign amended forms of contracts in the absence of any legal advice.   We have been monitoring this closely and continue to see unacceptable risk transfer through heavily amended standard form contracts.  If anything, this practice seems to be getting worse and it is increasingly hard to understand how unwieldy schedules of amendments are sneaking risk through.  This is being too readily accepted as normal behaviour, so much so that companies are at times not even reading the contacts.  We have to ensure that businesses and individuals understand and manage the risks that they are signing up to.

This new contract review service is designed to bring a bit of structure to how we respond, ensuring our members have access to the best possible advice in their negotiation of and management of contract and at least understand and can mitigate any risks that they are contracted to.  This forms part of our wider work in supporting the Conflict Avoidance Pledge.  Conflict management starts before the contract is signed and sometimes we need to be ready with an informed and responsible “no”.  Through this service we will be working with the reviewers to monitor contractual trends and ensure that we are responding effectively to them as a community.”

You can find out more about the Contract review service at the FIS Regional Meeting in Manchester on 28 November and via our dedicated webpage here

BPF Fair Payment Charter

BPF Fair Payment Charter

The British Property Federation (BPF) has, through its Construction Committee, developed voluntary guidelines that all BPF members are encouraged to adopt in their approach to payment.

A fair and transparent approach to payment is essential for ensuring a successful construction industry. The Charter sets out a number of important areas where construction clients are well placed to drive up standards, including mechanisms to cascade fair payment down the supply chain and approaches to demonstrate transparency of payment terms.

More information can be found here.

Building Regulations (Amendment) a The Building Safety Act – Readiness

Building Regulations (Amendment) a The Building Safety Act – Readiness

In light of secondary legislation to the Building Safety Act and The Building Regulations (Amendment) which came into force on 1 October 2023, many people are looking to existing contractual arrangements and asking if they already fulfil new requirements, or in some cases presuming that they already do due to a resemblance.

This is of particular concern where provisions from the Building Safety Act apply to all building projects, not just to higher-risk buildings (HRBs).

As legislation does not prescribe the fine detail of processes, many of the mechanisms used to facilitate provisions under the legislation such as change control, information management, competence management and mandatory occurrence reporting already exist and are being used.

Whilst this can be viewed as a positive reflection of progress, consider that both compliance and non-compliance can both look very similar to what we are used to seeing on-site, but “business as usual” is by no means the way forward.

Considering the appointment of a “Principal Designer” and Principal Contractor” as an example, these are required by the amended Building Regulations and do not apply only to HRBs as follows:

11D.—  (3) The appointments under this regulation must be made—

(a) in relation to a project which includes higher-risk building work for which an application for building control approval must be submitted to the regulator, before that application is submitted;

(b) in relation to any other project, before the construction phase begins.

Whist these roles need to be appointed, there is no text in the legislation that prohibits a party from sharing these roles and the associated liabilities, meaning that it is quite possible for a D&B contractor to act as both principal contractor, and principal designer.

The danger comes from the presumption that parties on site can fulfil these roles by their function alone without being appointed, or have been appointed when they haven’t, and it bears repeating that according to the Building Regulations:

11D.—  (1) Where there is more than one contractor, or it is reasonably foreseeable that more than one contractor will be working on a project, the client must appoint in writing—

(a) a designer with control over the design work as the principal designer for the purposes of these Regulations, and

(b) a contractor with control over the building work as the principal contractor for the purposes of these Regulations.

Outside of the principal roles, it is important to remember that “designer” and “contractor” are defined only by function, and are not appointed, so consider that it is possible to fulfil these roles unintentionally.

SpecFinish – The Unintentional Designer

FIS – Introduction to the Building Safety Act

FIS Guide: Introduction 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.

Opening doors to the next generation

Opening doors to the next generation

Preparations for Build UK’s Open Doors event in 2024 is well underway. Members can now use the new Open Doors website to register the sites and other experiences they are planning to offer from Monday 18 ‐ Saturday 23 March 2024.

Open Doors Partners have already registered an exciting range of events, including Canary Wharf Group’s Wood Wharf, Kier’s Manchester Aquatics Centre, Sunbelt Rentals’ National Distribution Centre and Willmott Dixon’s Darlington Railway Heritage Quarter.

FIS Head of Skills and Training, Beena Nana said: FIS fully supports the Open Doors event and is exploring new ways in which we can demonstrate the vast career opportunities available in this rewarding sector. We’ll be announcing more on this work in the coming months.

Build UK Chair Julie White has shared her thoughts in Building Magazine on why everyone in the industry should get involved, explaining: “Open Doors provides a unique opportunity for young people and those looking for a change of career to visit our sites and other facilities to see first‐hand what the industry has to offer”. Julie will be leading by example with the support of Build UK Trade Association member, the Drilling and Sawing Association, which will be opening its Nottingham headquarters to showcase its apprentice training and the use of technology in a specialist trade.

We know that schools and colleges require advance notice to organise visits, so we recommend you register your events as soon as possible. Further information can be found in Build UK’s latest Open Doors update.

Building Regulations (Amendment) a The Building Safety Act – Readiness

Building Safety Regulator charges regulations and charging scheme published

The Building Safety (Regulator’s Charges) Regulations 2023 were laid before Parliament on 6 September 2023, to come into force on 1 October 2023. The Regulations can be found here.

The Building Safety Regulator (BSR) Charging Scheme from 1 October 2023 has also been published. The publication details BSR’s charging scheme for chargeable functions, as defined in the Building Safety (Regulator’s Charges) Regulations 2023.

The Scheme explains:

  • the chargeable functions
  • the trigger for each chargeable activity
  • who is required to pay for the chargeable activity
  • what the amount payable will be made up of
  • the relevant legislation for that activity

This information is supplemented by annexes that explain how charges are calculated, how payments and repayments are processed, and the queries and disputes process.

The charging scheme was published on 21 September and can be found here.