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Managing risk in fit-out: The devil is in the “assumed” detail

Managing risk in fit-out: The devil is in the “assumed” detail

BLOG: Joe Cilia – FIS Technical Director

In a follow-up to his last blog ‘Addressing fire proof, no proof and value engineering’, Joe Cilia turns his attention to the ‘I have always done it that way’ argument.

This particular “old chestnut” is often brought out in defence to justify work, process or decisions based on past experiences, how the individual was trained (or shown) or what was in the last copy of a guide that was read – the assumption is that it should be ok based on experience: but here is the nub, things change, and often that change is brought about from new information, scientific research or an event.

It isn’t hard to think of some examples that we wouldn’t countenance now, but may have been considered normal back in the day:
Lead was used in in a huge range of products until people realised the harmful effects it could have when it was used in toy soldiers, paint, and petrol, all now banned.

Asbestos was billed as the “magic mineral” and used commonly in construction applications such as pipe lagging, tiles and insulation, now banned because of the risk to health.

So as our understanding improves, as innovation drives improvement, new testing, scientific research or worst case, an unfortunate event informs us, it is not unreasonable that the way we design and build evolves too.

A huge catalyst for change is that we live in a digital age. This has both upside and downside risks. Up until recently the only way we could see what was up to date and current was to wait for the revised guide to be printed or go to the source. In the information age and with mobile phone in hand, online up to-date information is far more readily available and accessible – this is great, but it also throws up new risks – information needs to be contextualised and validated.

Anyone who has seen the recordings of the BBC blog of the Grenfell inquiry where individuals are being cross examined, will quickly realise the importance of questioning and having evidence of compliancy. As competent people (who rely on our skill, evolving knowledge, ethics and experience) it is our responsibility to check, as its clear that saying ‘I thought’ does not stand up to cross examination.

In the world of fit-out, where building interfaces differ, build height, environment, compatibility with other specified elements, where ultimately there is more choice, it is vital to ensure that all of the details are carefully considered. All to often the term “contractors choice” leaves a contractor assuming design responsibility and impossible decisions rushed through because of late appointment, a lack of foresight, poor planning and pressure on programme. FIS advice is always to:

• Stop – Don’t Assume
• Check
• Confirm

I cannot stress enough how crucial this last stage “confirm” is. Even where assumptions are checked, decisions must be validated. This risk is that without thorough and robust assessment, where the implications of size, interface, compatibility of abutting materials, loadings and fittings are considered, performance may differ drastically from what was intended. In my work I have seen many examples where the performance of a product is assumed yet the installation has been altered in a seemingly small way, but that ultimately renders all proof of performance invalid and makes the
body who added the new material the ‘Manufacturer’, without the protection of warranty and liable for ensuring the safety and producing test evidence against any claims.

Suppliers too are more cognisant of the challenge and reporting that they are seeing instances of trying to “prove designs” or develop “workable solutions” based on test evidence that had been developed to manage bespoke installations, but now is being employed erroneously as if a standard
detail. This practice, coupled with the concept of extended producer responsibility and tightening regulation is driving suppliers to become more risk adverse in the publication of information and even withdrawing information that they fear could be misleading, out-dated or open to misuse.

The challenge to the market is that in a world of ultimate design freedom we create a myriad of solutions. Whilst manufacturers and contractors will continue to work with designers to overcome individual challenges, we may start to see choice constrained by compliance and the practicality of
testing and bespoke solutions, better planned, properly costed and evidence more clearly contextualised and marked for use within the constraints of that specific project.

So don’t assume that what was used on a previous job would apply to the next job or that ‘Standard details’ are still current, check with the system owner/ supplier before designing and ask for confirmation in writing and add it to the project file in case you are asked.

Joe Cilia
Technical Director FIS
September 2020

CITB shares strategic plan for 2021-25

CITB shares strategic plan for 2021-25

CITB has shared its new Strategic Plan 2021-25.  The plan sets out the key skills challenges for the construction industry and what CITB will do to address them.  There is a video to watch about CITB’s new Strategic Plan and how it links back to their recently published Annual Review here.  CITB expect COVID-19 to have a lasting impact on skills provision, creating an increased demand to protect specialist skills.  The Strategic Plan has built in flexibility so they can respond if requirements change, using CITB experience and conversations with industry to understand the issues.

Due to reduced income, it will be essential that CITB focus on a smaller number of priorities to modernise and improve productivity, with greater access to training.  CITB will help employers address gaps in provision, make training accessible and target funding where it’s needed, including through the Grants Scheme.  Some of the initiatives within the plan include:

  • Support 28,000 taster experiences of construction and help potential new entrants understand the opportunities available through Go Construct
  • Create a new pathway between Further Education and employment for 8,000 learners, including 1,600 apprenticeship starts
  • Give 19,000 people onsite experience to prepare them to start work in construction
  • £500m of grants and funding (77% of Levy) into direct employer funding to help employers invest in training to rebuild after the pandemic and subsequently to modernise and boost productivity.

CITB feel with support from the industry a productive workforce equipped in high quality, transferable, core and emerging skills can be built that will pave the way for recovery.  You can read more in the CITB Strategic Plan 2021-25.

Kickstart: How you can access funding towards wages and strengthen your team

Kickstart: How you can access funding towards wages and strengthen your team

FIS has published a number of articles explaining the government-funded Kickstart scheme which was officially launched on 2 September 2020.  The scheme is aimed at helping unemployed young people aged 16-24 get a foothold on the career ladder by funding six-month job placements.  Under the scheme, funding will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus associated employer National Insurance contributions and employer minimum automatic enrolment contributions. 

One of the elements of this scheme is that applications must be for a minimum of 30 job placements.  FIS recognise this is likely to be too many for the majority of our members and as such, we are delighted to advise we have been approved to act as an intermediary on behalf of you, our members and the Department for Work and Pensions (DWP). 

As an intermediary, we are able to amalgamate all requests and submit a consolidated bid on your behalf. 

To make it as seamless as possible for you to engage with the scheme, FIS will be playing an active part in working with DWP to select the best and most suitable people available.  We can help you to access the £1,500 per job placement fund to cover the initial set up costs and the costs of training and support.  FIS will be there to support you and your organisation through the Kickstart process from beginning to end. 

We urge you to support this initiative and give unemployed young people a chance.  There is no obligation to employ individuals after the work placement has concluded.  Even if you don’t think you’ll be in a position to employ anyone for the next 6 months, you can still give someone an opportunity to train and develop, at no cost to yourself or your organisation and perhaps help them secure a career in construction.

Further information is available at https://www.gov.uk/guidance/apply-for-a-grant-through-the-kickstart-scheme but if you do have any questions, or would like to discuss your organisations specific requirements please give our Skills and Training Coordinator, Paul Glover a call on 07975 759378.

Updated Trade Credit Insurance Guidance: A vital lifeline for construction

Updated Trade Credit Insurance Guidance: A vital lifeline for construction

The Construction Leadership Council guidance on trade credit insurance during COVID-19 has been updated to reflect the latest Reinsurance Scheme information. This includes a list of participating insurers and scheme rules.

Trade Credit Insurance (TCI) is a vital lifeline in the finishes and interiors sector, giving businesses throughout the supply chain the confidence to trade with one another.  The coronavirus (COVID-19) pandemic has created problems for many businesses. Given the sudden disruption to economic activity, reduced cashflow and the resulting increased risks of insolvency and default in the market, businesses have seen trade credit insurance withdrawn, premiums increasing significantly, or the level of cover offered reduced. The withdrawal of cover could cause further difficulties for businesses, by placing pressure on liquidity, necessitating changes to payment terms, and depriving SMEs in the construction sector access to trade credit, on which they depend.

TCI provides protection for businesses when customers do not pay their debts owed for products or services. A TCI policy will reimburse the policyholder in the event of the buyer’s non-payment, up to a certain credit limit set by the insurer. This form of insurance can prevent the negative impact of non-payment from having a ‘domino effect’ along construction supply chains.

On 4 June 2020 the Government announced the temporary Trade Credit Reinsurance Scheme. The Construction Leadership Council (CLC) welcomed the announcement in a press release. The Scheme is now operational and final details, including participating insurers has been published on GOV.UK.

The Insurance and Surety Working Group for CLC COVID-19 Task Force has produced this summary guidance to support businesses in the construction and maintenance supply chain, including builder’s merchants, electrical wholesalers, manufacturers and suppliers. This guidance aims to provide practical advice and considerations for discussions with brokers and insurers when seeking TCI. It also provides an outline of the TCI reinsurance scheme between government and available insurers.

Read the full guidance here.

Barbour ABI: UK economy grows by 6.6% in July

Barbour ABI: UK economy grows by 6.6% in July

The UK economy continued its stronger than expected recovery in July, growing by 6.6% following June’s expansion of 8.7%. The economy has now recovered around half of the lost output between March and May, it remains 11.7% smaller than in February: to put it in context, the economy is the same size now that it was in 2013.

While the speed of the economy is encouraging, many experts’ current sentiments are very downbeat: this is because many indicators have weakened recently and are expected to deteriorate further. The UK currently faces a triple threat of:

  • a weakening economic outlook set to deteriorate further as emergency government support measures are withdrawn later in the autumn,
  • new Covid-19 outbreaks leading to restrictions that inhibit further economic recovery, and
  • a disruptive Brexit causing shortages of goods and labour, and price inflation among other disruptions.

The Bank of England’s Chief Economist recently warned the government against extending the furlough scheme, arguing it would delay a “necessary process of adjustment” and the focus should be on transitioning to new ways of working.

Sector comparison
Construction continued its strong recovery, growing by a further 18% in July after being the most impacted sector in April. Further detail is contained within the report.

The production sector output increased by 6%, led by the manufacture of clothes and transport equipment. Services also increased by 6% with wholesale and retail trade, information and communication and defence approaching recovery to February’s levels. Accommodation and food services, while growing strongly, is still 40% compared to earlier in the year.

Construction remains 25% down compared to February, with services -13% and manufacturing -12%.

FIS members can access the full report here.

Venues required by law to record contact details

Venues required by law to record contact details

With the recent move to ban social gatherings of more than six people, it is now mandatory for premises and venues across England to have a system in place to record contact details of their customers, visitors and staff. This is the latest move to break the chains of transmission of coronavirus.

Details must be stored for 21 days and shared with National Health Service Test and Trace, if requested. There are fixed penalties for organisations that do not comply. Businesses and organisations had previously been advised to collect and share data, with many effectively doing so, however this programme will now be formally mandated from 18 September 2020.

Further details can be found here.