Ahead of the 2020 Budget, FIS, the representative body for the finishing and interiors sector has written to the new Chancellor, Rt hon Rishi Sunak MP.  In this letter FIS welcomes the new Government’s focus on the Constructor Sector Deal, but cautions that legacy and liquidity issues mean the sector needs support to effect real and profound change in a meaningful time frame.   The letter then looks at seven critical areas where intervention would be welcomed including the introduction of a Building Safety Fund (extending the current remediation fund), a review of insurance provision for the sector, more leadership on fair payment issues through public sector contracts, a review of business rates and how this encourages investment in buildings, consultation on resolving credit issues in construction, reconsidering Reverse Charge VAT and extension of the way that Apprentice Levy Vouchers can be invested in our training infrastructure.

FIS CEO, Iain McIlwee, stated, “The industry needs to look to the future, but this is difficult with the shadow of the past looming over us.  To step beyond this is about marginal gain and hence we have drawn out seven key areas where Government could intervene.  The simply fact is that the industry is evolving, but it is difficult to step beyond the past when many of the same behaviours are enduring and we are hampered by a lack of credit constraining investment and operating in an environment where risk has been parcelled up and pushed down the supply chain in contracts that are just unfair.  Construction is such a huge driver for the economy accounting for around 10% of employment, the housing crisis still looms large, we need to get on top of sustainability issues and we have buildings in urgent need of refurbishment to ensure that they are safe, these must be priorities for the Chancellor and we look forward to hearing how he is going to address the suggestions that we have raised sit at the very heart of our industry and society”.

You can read the full letter here:  Letter_to_Chancellor 2020

The Scottish Qualifications Authority (SQA) has produced a report looking at the changing skills landscape in construction, including the role virtual reality (VR) could play in assessment.

The report points out that a high proportion of the industry’s workforce is close to retirement. It says that the potential impact of this is worrying, as essential skills and knowledge are being lost, there is a decline in entrants to the sector, and there is a shortage of skilled workers in the pipeline to replace those retiring.

“More needs to be done to attract young people into the industry, but also to ensure that older members have up-to-date training,” it says. “It is imperative that employers focus on effective workforce planning to ensure vital skills are not lost within construction.”

Recent analysis of SQA data showed that the highest uptake of qualifications was in the 24+ age group, with the average age of its construction learners being 40.

The government’s focus on construction apprenticeships is also helping to bridge the skills gap, said SQA, facilitating entry into the sector by providing an alternative to traditional study methods and covering many key trades.  

SQA said that has been working towards bridging the skills gap through its range of construction qualifications. In 2017, it launched a further suite of construction qualifications in direct response to the removal of the Construction Related Occupation (CRO) card.

The report also refers to need to encourage all school pupils, especially girls, to consider STEM subjects when they choose their courses and career paths as a means of bridging the skills gap in the sector.

To read the full article visit https://www.theconstructionindex.co.uk/news/view/qualifications-body-reports-on-changing-skills-market

Build UK has published the latest payment results submitted by its members under the Duty to Report on Payment Practices and Performance, which continues to drive greater transparency across the construction sector and is leading to improved payment practices.

Contractor members showed particularly positive results, significantly reducing the time taken to pay invoices to an average of 36 days, down from 45 days just 18 months ago. Over a third have actually improved their performance by 15 days or more during this period. On average, Contractor members now pay 91% of their invoices within 60 days, up from 80%.

Build UK has been benchmarking its members’ payment performance since July 2018, in line with the target set out in the Government’s Construction Sector Deal. Build UK also continues to provide information on the payment performance of central Government departments, with 13 of the 16 departments paying over 95% of their invoices within 30 days.

Compiling data in this way has presented a coherent picture of payment practices within construction, which has been welcomed by Government for driving culture change and enabling informed decision-making.

This initiative, alongside the recent publication of guidance to support the Build UK recommendation on contract terms, is part of Build UK’s wider strategy to promote collaboration in the supply chain and tackle the wider issues associated with the high risk, low margin construction business model.

Build UK Deputy Chief Executive Jo Fautley said:

“We have seen consistent improvement from our members since Build UK began benchmarking their payment performance in 2018. Contractor members in particular have taken the opportunity to change the industry’s approach to late payment, recognising the importance of transparency to drive good practice. There is still work to be done but these latest results show that we are definitely heading in the right direction.”

Hot on the heels of the National Apprenticeship Week, it’s time for Scotland to showcase their apprentices.

‘Talent without Limits’ has been announced as the theme, which will celebrate the diversity and value that apprenticeships bring to employers, apprentices and communities across Scotland today. From highlighting the breadth of industries and roles available to the talent and energy apprentices bring into the workplace.

We urge all our FIS members based in Scotland and Approved Training Providers to let us know about any plans they have for the week and refer any stories/case studies that could help to promote the sector  – email details to yasminkauser@thefis.org or call 07741 552080 and DON’T FORGET to enter your apprentices into the FIS Scottish Awards – Apprentice of the Year category. The deadline for entry is 29 February. 

Check out our FIS Apprenticeship hub and watch and read some of the success stories here: www.thefis.org/skills-hub/careers-index/apprenticeships/

FIS Chief Executive Iain McIlwee attended Build UK’s ‘Any Questions?’ event last week, which delivered an informative and thought-provoking debate.

With HS2 being given the ‘green light’ earlier in the week, the event provided the ideal opportunity to think strategically about how construction must change to deliver an infrastructure revolution.

What matters to construction

• The panel was clear that collective culture change was required, with Nick Smallwood (Infrastructure and Projects Authority) pointing out that it starts at the top, giving the industry leaders in the room a clear role to play.
• Procurement took centre stage, from the impact of Carillion’s collapse and the transfer of risk through the supply chain, to the need for greater investment in technology and innovation. This will require a clear pipeline of work and more consistency from clients, which in turn would enable the supply chain to increase efficiency and productivity.
• Processes, people and skills were identified by Mark Farmer (Cast Consultancy) as crucial to winning back public confidence in the aftermath of Grenfell, while Ann Bentley (Rider Levett Bucknall) was passionate about the industry doing more to address the legacy of the fire and demonstrate that new buildings are both fit for purpose and perform as intended.
  Driving demand for more Modern Methods of Construction with its potential to meet challenging housing targets was raised – can this new way of working also address the desire for greater flexibility and job security?
• The panel was unanimous in its view that we should focus on the positives of working in construction, which included well paid roles at all levels when compared to other sectors.
• This led onto discussion of the current levy and training systems, and whether they are delivering the apprentices the industry needs. Peter Lauener (CITB) rose to the challenge, setting out how CITB was moving from being a delivery body to an enabling one, supporting employers to meet their skills needs.
• Finally, with the attention on net zero carbon, it was agreed that collective action is needed in an industry which contributes 40% of carbon emissions, and this will require a concerted effort from the whole supply chain.

After the probing questions and robust responses, the audience was left in no doubt that the current ways of working are unsustainable and the key question for the industry is whether it is truly ready to do things differently. This presents a huge opportunity, with Build UK and its members well placed to offer the leadership and collaborative working environment that can deliver lasting change and transform construction into a world-class sector.