Construction Leadership Council confirms support for Build UK Retentions Roadmap

Construction Leadership Council confirms support for Build UK Retentions Roadmap

In a statement issued on 9 December, the Construction Leadership Council (CLC) has confirmed its support for Build UK’s Roadmap to Zero Retentions and encouraged industry to implement the new minimum standards when using cash retentions. The CLC’s support marks another significant milestone for the roadmap, which sets out specific actions in a phased approach for the construction industry to achieve zero retentions.

Recent milestones delivered as part of the roadmap include publication of the retention policies of major public sector clients in November to provide increased transparency. This followed publication of the Minimum Standards on Retentions in July which aim to reduce the existing challenges with cash retentions.

The CLC has urged construction firms and clients to adopt the minimum standards, which incorporate and build on the CLC’s commitment to abolish cash retentions.

FIS chief executive said:
“It is encouraging to see a unified approach, but I want to see a foot on the gas here.  We’ve had enough of backstops and a backstop of 2025 is too far away, let’s rally and get this done by 2023.  Retentions are an archaic way to manage quality and no longer fit for purpose.  They undermine a positive culture and on balance I believe they contribute to the problem that they were designed to solve.  Sadly I think we all know that and truth be told, all they are is a hangover of credit issues within the sector.  So let’s get shot by 2023 at the latest, but also recognise that this is not the only place where the supply chain needs to improve in terms of payment.  We still do the variations dance at the end of virtually every contract and use delay tactics to avoid paying til the last possible moment (sometimes sadly a moment too late for some companies), these are the shackles that hold this great sector back and contribute to stress and tension in the supply chain”

Andy Mitchell, Co-Chair of the CLC, said:

“The CLC believes that adopting the minimum standards will enable the industry to make progress towards the objective of achieving zero cash retentions by 2025. It will demonstrate commitment to the supply chain, whilst allowing the industry and its clients to adapt and improve standards of quality. Therefore, the CLC urges firms within the industry and construction clients, in both the public and private sectors, to support the roadmap and adopt the minimum standards, as a pragmatic means of improving prompt and fair payment practices and helping to create a stronger and more sustainable industry.”

Jo Fautley, Deputy Chief Executive of Build UK, said:

“It is encouraging to receive the endorsement of the CLC for the work that we are doing to move towards zero retentions as part of our roadmap. Achieving zero retentions is a vital part of becoming a more collaborative and efficient sector, and our roadmap sets out practicable steps for the industry to implement as we move towards this goal.”

CPA Weekly Notes

CPA Weekly Notes

The Markit/CIPS PMI for manufacturing was 48.9 in November, down from 49.6 in October. This marked the seventh consecutive month of contraction for the manufacturing sector, as the upcoming General Election added another layer of uncertainty, whilst destocking activity resumed following the delay to the October 31 Brexit deadline.

The Markit/CIPS PMI for construction was 45.3 in November, up from 44.2 in October. Although the latest reading was the highest since July, it remained below the no-change mark of 50, indicating that construction activity contracted for a seventh consecutive month, owing to a lack of new work to replace completed contracts and unusually wet weather in November.

Members can access the full CPA Weekly Notes via the link below.

FIS Conference round-up: Rethinking Construction

FIS Conference round-up: Rethinking Construction

A massive thanks to our events sponsors, QIC Evolution and Forza Doors. Partners, speakers, exhibitors and of course the delegates in attendance. We hope you had an enjoyable and insighful day.

A full round-up and presentations from the day are below.

Dr Noble Francis – Economics Director, Construction Products Association
Making sense of the UK economy

Key points:

  • There has been economic growth since the referendum, driven by consumers rather than business investment
  • For construction, the commercial sector remains the most negatively impacted by Brexit
  • Dr Francis presented possible Brexit options and likely outcomes (see slides)
  • He highlighted that the carbon economy and sustainability are rising up the political and economic agenda again

Click here to view slides

Martin Taylor – Director of Regulatory Policy, Local Authority Building Control
A new era of Fire Safety in Construction and the implication of changes drawn from the Hackitt Review on product selection, working practices and wider performance issues.

Key points:

  • The focus on High Risk Residential Buildings has started, but there is more regulatory change to come
  • Much of the discussion is focussing on new build, but control will extend to existing HRRB’s.
  • A series of ‘gateway points’ are being incorporated into the building safety regime for high-rise residential buildings in England, requiring the responsible dutyholder to demonstrate compliance at set points during design and construction.
  • Detailed work is starting on how to structure the Joint Regulator comprising of the HSE, Building Control and the Fire and Rescue Service.
  • Skills shortages and resource constraints are a concern in the Building Control sector too.

Click here to view slides

Fergus Harradence, Deputy Director Construction, Department for Business, Energy and Industrial Strategy
Construction 2025 – a new Industrial Strategy – Payment, Competence, Quality and Safety – the view from Government.

Fergus highlighted the following risks/key impacts on construction from a socio-economic perspective

  • Brexit – UK due to leave EU on the 31 January. Withdrawal Agreement, leaving without a WA and a further extension all possibilities. Ongoing uncertainty until after the General Election.
  • Insurance – market tightening, especially for PI insurance. Premia increasing, excess levels increasing, and policies covering fewer activities. Driven by Grenfell and Carillion, and the perception that construction is high-risk.
  • Building Safety – expect new legislation to be introduced to Parliament to implement the recommendations of the Hackitt Review.
  • Reverse Charge VAT – introduction of this will be a challenge for the sector. Significant cash flow implications for firms in the subcontracting chain.
  • Competition – series of CMA investigations into demolitions, groundworks, concrete pipework, fit-out contractors. More focus on the sector and a publicity campaign in 2020.
  • Fair Payment – Fergus outlined that Government remained concerned about practice in the industry, some action had been taken, but more to be done.

Click here to view slides

Defect free construction, Martin Adie, MAC Construction

Productivity in construction is not improving, too much time is spent snagging and redoing. How do we move to defect free through quality management and a focus on product, process and people?

Key points:

  • Martin provided some indicative figures on re-work rates in their business and roughly how much this may be costing
  • He interrogated the key factors that impact quality in terms of People, The Environment, Cost and Time
  • He used the new FIS PPP Quality Management Tool to help drive a PDCA Quality Assuurance Process (Plan Act Check Do)
  • Finally he looked at definitions of competence and where to prioritise efforts

Click here to view slides

Wellbeing and your workforce, Nathan Shearman, Red Umbrella

Attacking the mental health challenge in construction. Red Umbrella looks at underlying issues and finding new ways to support our workforce.

Key points:

  • 4 million days were lost due to mental health, 57% of all absenteeism is due to mental health and the estimated cost to UK employers is £33 – £42 billion per year
  • 75% of all suicides are completed by men. Suicide is now the leading cause of death in men under 50.
  • Males working in a skilled trade – including building finishing trades – are twice as likely to attempt suicide than the general population
  • Nathan went on to interrogate some of the causes and how to develop a Mental Health and Work Plan.

Click here to view slides

The art of getting paid, David Rintoul, Partner, Clarkslegal

Late payment is a blight on construction, but final account settlement is about so much more.  This session focussed on ensuring you get paid on time and manage those dreaded variations.

Key points:

  • It is important to understand what is a variation and what it can cover (from a contractual perspective). David referenced key JCT clauses.
  • David explored (using relevant case law) when a notice is a “condition precedent”
  • He outlined what must be included in a variation notice
  • David underpinned the significance of interim valuation dates and the reciprocal pay-less notices
  • The session ended with an open discussion on common disputes

Click here to view slides

Communication in a changing world, David Ing, Managing Director, Fabrick

With a sector under scrutiny and going through major changes, managing brand reputation and communicating with customers has never been so important. With so many communication tools at your disposal and digital revolutionising the way we interact, what do companies need to do to drive effective brand communications?

Key points:

  • David started to analyse the different channels that we have available (social media, digital, pr etc) and how to prioritise these
  • He highlighted the importance of deep content, such as case studies, technical features, interviews, videos, blogs and viewpoints
  • He went on to describe how to use content to engage, inform and ultimately influence
  • David highlighted that crisis can happen and communication in crisis is critical, he provided some top tips to support this work

Click here to view slides

Building wellbeing into fit-out, Elina Grigoriou, Grigoriou Interiors

How the design of interior spaces impacts wellbeing. Analysing a variety of factors such as light, biophilia, indoor air quality and colour and the impact they are having on productivity in the UK.

Key points:

  • Elina provided summary of her recently published book, Wellbeing in Interiors, Philosophy, Design and Value in Practice
  • She highlighted that wellbeing is achieved when there is harmony between the people and the interior
  • She provided insight into the 8 key pillars of wellbeing in a building
  • Elina completed the presentation with a number of key case studies that embody the principles of wellbeing

Click here to view slides

Managing your risks, Gavin Dunn, CEO, CABE

Understanding your risks and the elusive Golden Thread is pivotal in a post Grenfell world.  This workshop focussed on competency frameworks and how to ensure that we exchange the right information and manage relationships from design through to construction to reduce risk and improve safety and quality.

Key points:

  • Gavin looked at some of the ground truths that underpin some of the current challenges that lay before our Industry. He interrogated the Building Safety Issues and highlighted that despite reports of skills issues, only 14% of the construction sector workforce and  11% from ethnic minorities.
  • Gavin used the Oxgang School Case study to look at some of the quality failings
  • He interrogated what The Golden Thread identified in the Hackett Report means and finally how CABE and the wider Construction Engineering Community are rethinking competence and the importance of CPD

Click here to view slides

FIS is in sound shape, making a difference and continuing to grow

The FIS AGM was held on the 19th November 2019 at St Georges Park, Staffordshire (read the minutes here)

In the Outgoing President’s address, Andrew Smith of OWA highlighted that the FIS was in sound financial shape with a little over £25,000 surplus generated in the year 2018.

In his speech Andrew remarked on the continued growth of the FIS, both in terms of membership and influence, particularly highlighting the FIS Product Process People approach to Quality and the FIS Competency SAKE Framework that are both being used to support the development of practical tools for members and starting to influence the wider market. He also used the new FIS Acoustic Verification Scheme as an example of how FIS works through the members to raise standards in the marketplace and actively help members to win work. He concluded by noting that healthy competition for Board places underpinned the growing levels of engagement that FIS was enjoying.

At the AGM, FIS Richard Grimes Grimes Finishings, was elected as a new contractor representative and both Jim Nania of Stortford Interiors and Philip Brown of Meronden were elected to return to the board for another two years. Lydia Sharples, Nevill Long and Stuart Roberts, CCF were also elected as new representatives for the supplier members.

Helen Tapper, Tapper Interiors was confirmed as incoming President at the event and in her opening speech set out the stall for her two year term. Helen intends to focus on continuing to grow the FIS whilst intensifying the fight for SME contractors and striving for greater inclusivity in our workforce. Helen also used the opportunity to announce the new FIS digital presence in the form of a new core FIS website and interiors platform linked to a new partnership with Barbour ABI and relaunch the revamped Fit out Futures Project, which has been extended now to June 2021.

At the meeting, Richard Jones of Paramount Interiors was confirmed as Vice President.

Why slinging boards is being embraced in the new England training regime

Why slinging boards is being embraced in the new England training regime

Match report:  The Etex Fit-Out Cup, St George’s Park, 20 November 2019

A day now etched in footballing history started like any other November morning.  It was a windy, crisp and bright autumn day at the England Training Ground as the two teams assembled for the inaugural Etex Fit-out Cup.  The pitch was perfect, the army drafted in (seriously!) to act as match officials and the tension and excitement in the crowd (all 5 of them) was palpable.

It is hardly surprising that Etex started the brighter of the two teams.  They arrived, looking the part, communicating well, forming passing triangles all over the park, controlling the ball and the play in the first 20 minutes.  Was it that the core of the team made up from Building Materials Ltd and had clearly played together before, was it talent, youthful vigour or simply that half the FIS team had fallen out of the bar in the wee small hours and needed to sweat out some of that alcohol to see the game clearly?

Whatever it was Saminder Matharu, well supplied by James Bouvier and Matthew Davies looked a constant threat up front.  Oscar Venus (who has all but ended a promising career at the FIS when he turned coat and volunteered to make up the numbers for the opposition) was starting gel with the lads from Building Materials Ltd and stretch the FIS midfield – FIS goalie, Alex Brown, did well to keep the score level controlling his box well.  The sensible money was starting to swing towards the Red and Whites with mumbles of “could be a drubbing” heard from the crowd (already down to four!).  But the FIS team started to gel and the defence kept shape (very much built around the 6ft 3 Centre Half Alex Wright who was solid in the air and in the tackle) and Minster’s Lee Cowling.  The gaps started to disappear.  The crowd (now swelled by substitutes in the form of Big Danny and Grahame from PWB) started to feed off the growing confidence on the pitch and comments like “this actually isn’t bad football” cut through the pessimism.  Indeed FIS almost took the lead when Hammad Taj broke through to score, only to be pulled back for an earlier infringement by Etex (the atmosphere in the crowd soured as the lack of advantage seemed harsh).

Etex pressure and patience finally paid off though when Darren Young who had been having a stirling game marginally mistimed a tackle on the edge of the box and a penalty was calmly slotted home.

Their second goal quickly followed with a fast ball over the top being hammered home on the half volley, leaving Alex no hope at all.  Things appeared to be unravelling when Darren Adams (Great Yarmouth Ceilings) who had been a stalwart throughout had to retire due to a thigh strain.  But up steps Big Danny Fitzsimmons who not only filled his shirt, but held the ball up well, provided an intimidating presence and showed a deft touch that drew comments from the crowd like “neat feet for a big lad”.  FIS needed to find some hope from somewhere, but few games have ever turned on a throw in – this one did.  FIS could have finished the half with heads down, but a throw in just before half time revealed a new secret weapon.  I have honestly never in 40 years of watching football seen a ball travel as far as Danny’s throw in – it may even be a defining moment for football, you can’t surely be held up for wasting time if it is because you were just waiting 5 mins for the ball to land!  I am fully expecting Etex to get an order of Plasterboard from the FA to compliment their Gym Equipment if that it what slinging boards can do for a throw in in the modern game!

Half time came and Jay Lee (who had displayed an architects eye for design and shape as he had constantly found gaps with his neat passing) and Alex Jones swapped shirts with Jay switching to goal and Grahame from PWB taking to the field.

Team FIS picked up where they left off and with Michael Burke, Steve Williams (captain), and Angus Nanan combining neat passing with great control and energetic, solid defending to keep Etex under constant pressure and prevent the quick over the top ball causing FIS further trouble.  Alex proved himself quickly as an outfield player with calm control and an ability to take players on.  Gemma (the lone lady) continued to get stuck in and, like all good strikers, never gave anything up.  Grahame Helm, the oldest player on the park proved that there was life in the old dog and used all his guile and experience to ensure that he was always in the right spot.

The swing in momentum finally gave just reward when some more passing gave Hammad a sight at the goal.  Despite being 25 yards out, he didn’t need a formal invite to curl it into the top corner with a goal that would have beaten any keeper and been a contender for the goal of the week on Match of the Day.

FIS rolled subs on and off, but with 15 mins to go legs were tiring and they were running out of options.  Reluctantly they were even forced to use FIS CEO Iain McIlwee who ably demonstrated why he was banished from the football field at the age of 11 and told to go and play “with a different shaped ball and the other fat lads over there!”

But despite Iain’s presence significantly weakening the FIS Team, there was another twist when a mazey run from Hammand Taj bought a soft foul in the box and another penalty was awarded and scored by Hammand.

Normal time finished 2 v 2 despite several close efforts from Etex and it could so easily been won by them, but for some brave goalkeeping from Jay.

With the final whistle gone, the two captains quickly consulted and, to spare an overload at the cardiac unit of the local hospital, decided that, extra time was high risk and penalties would be used to separate our teams.  Even this proved difficult and after 10 penalties it was still 4 v 4 and sudden death.  Then up step our two hero’s Gemma and Jay.  Jay’s athletic save was quickly followed by Gemma calmly slotting home the winning penalty and team FIS finished the victors.

It really was a fantastic event, thanks to all involved.  Special mentions to the two most valued players, Berkuk Kunduh of Building Materials and Hammad Taj of Kerry London and of course our sponsors Etex.  The event raised £1,700 for our charity Mind and was a great reminder of how sport can have a positive impact on mental health.

If you are interested in getting involved in the Fit-Out Cup 2020, let us know.

FIS partners with Barbour ABI to provide 15% discount for its members

FIS partners with Barbour ABI to provide 15% discount for its members

FIS has partnered with Barbour ABI to extend our reach and educate and take our content directly to specifiers and building designers.

This partnership is great news for FIS members because it provides a dedicated Hub for FIS on the Barbour ABI Product Search where we will be able to:

  • Deliver technical content and best practice advice directly to the specifer
  • Highlight best practice within the membership and support members in bringing their products to the attention of this vital audience
  • Showcase the work our members do such through our Awards
  • Assist contractor members in finding work
  • Receive 15% discount off any products within the Barbour ABI portfolio.  FIS members can simply call 0151 353 3500 and quote code FIS to discuss further, for more information click here

To go to the FIS hub on Barbour Product Search click here