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Wales bans combustible cladding on high-rise buildings

Wales bans combustible cladding on high-rise buildings

The Welsh Government has today announced the banning on the use of combustible cladding on high rise buildings as from 13 January 2020. This will apply to all new residential buildings (flats, student accommodation and care homes) and hospitals that are over 18m high. The ban covers the entire height of the building and will apply to the complete wall assembly and certain attachments to the external wall including balconies and solar panels.  The ban will also apply to existing buildings where relevant building work is being carried out that falls within the scope of the Building Regulations, unless the building works have started on-site or an initial notice, building notice or full plans have been deposited and work has started on site within a period of 8 weeks.

The Welsh Housing Minister, Julie James, will publish a White Paper in 2020 setting out more details, FIS is working to avoid the repeat of problems that have impacted members in England.  To view the announcement click here.

Queen’s Speech – significant investment in infrastructure and housing, a focus on workers rights and building safety

Queen’s Speech – significant investment in infrastructure and housing, a focus on workers rights and building safety

The Queens Speech sets out the intent of Government over the next 12 months, attempts to lock in manifesto promises and sets out the stall of our new Government.  Probably few have been more significant than yesterday with everything at stake.

At a macro level getting Brexit done by implementing the Withdrawal Bill and fixing the exit date top the bill, but there is a fair bit in there for businesses operating in the construction sector.  In terms of specific policies related to construction we saw:

Investment in infrastructure and Housing

  • Commitment to invest £100bn in infrastructure and improved Broadband coverage across the UK
  • Funding to build 40 new hospitals in the UK in the next decade (over and above the refurb of 20 announced earlier in the year)
  • On Housing there will be continued support for first time buyers to address housing affordability, improvement to shared ownership models and renewal of the Affordable Homes Programme.  The Government is committed to building 1 million more homes.  Further improvements to the Planning Process are also promised.
  • The new £10bn Housing Infrastructure fund will be used to provide the roads, schools and GP Surgeries needed to support new homes.
  • To help improve quality Government will also legislate to require that developers of new build homes must belong to a New Homes Ombudsman.

Employment and Business Responsibility

  • Confirmation of the implementation of an Australian style points based immigration system post Brexit
  • Increases in R&D Tax Credits to 13% (see details of our webinar on how you can claim them here)
  • The introduction of a new Employment Bill that introduces a new enforcement body and enhance workers rights, support flexible working allow workers to ask for a more predictable contract and extend unpaid carers entitlement to leave.
  • Government will introduce new measures to reduce the disability employment gap.
  • Tighten company auditing an reporting to help improve public trust in business and help workers employed by large companies understand how resilient it is
  • Clamp down on late payment more broadly and strengthen the powers of the Small Business Commissioner to support small businesses that are exploited by their larger partners
  • Increase National Insurance Threshold to £9,500 and the National Living Wage to 2/3 the median wage (this is caveated by providing economic conditions allow).  Plans to lower the age of National Living Wage to 21 from 25 were also included.
  • The Government has committed not to raise income tax , VAT or national insurance
  • The Establishment of a National Skills Fund to improve investment in education
  • Reform Business Rates, bring forward the next re-evaluation and ensure that these are more frequent

Skills and Training

  • The bring renewed focus to further and technical education Government has pledged an extra £400 million for 16-19 year-old education next year, an increase of 7 per cent overall in 16-19 year-old funding and the biggest injection of new money in a single year since 2010.
  • There will also be additional investment in T Levels, supporting continued preparation for these courses with the first three starting from September 2020.
  • The Government will invest an additional £3 billion over the course of this Parliament to support the creation of a ‘National Skills Fund’.
  • The Government will invest £1.8 billion over five years in a rebuilding programme to upgrade the entire further education college estate.
  • The Government are also planning to establish 20 Institutes of Technology across England- unique collaborations between further education colleges, universities, and employers –– offering higher technical education and training in science, technology, engineering and maths subjects, to give people the skills they need for key sectors such as digital, construction, advanced manufacturing and engineering.

Sustainability

  • Re-affirmation of support for net zero carbon by 2050 and confirmation that they will enshrine in law environmental principles and legally binding targets

Building Safety

Perhaps most significantly of all a new Building Safety Bill that will implement the recommendations of Dame Judith Hackitt’s review of the Building Regulations.  Key elements of the Bill will include:

  • Providing clearer accountability and stronger duties for those responsible for the safety of high-rise buildings throughout the building’s design, construction and occupation, with clear competence requirements to maintain high standards.
  • Giving residents a stronger voice in the system, ensuring their concerns are never ignored and they fully understand how they can contribute to maintaining safety in their buildings.
  • Strengthening enforcement and sanctions to deter non-compliance with the new regime, hold the right people to account when mistakes are made and ensure they are not repeated.
  • Developing a new stronger and clearer framework to provide national oversight of construction products, to ensure all products meet high performance standards.
  • Developing a new system to oversee the whole built environment, with local enforcement agencies and national regulators working together to ensure that the safety of all buildings is improved.

In a separate Fire Safety Bill, the Government will ensure that building owners and managers are clear that they are responsible for assessing the risks of external walls and fire doors in buildings of any height.

You can download a fully copy of the Queens Speech here

Barbour ABI – Economic and Construction Market Review

Barbour ABI – Economic and Construction Market Review

FIS has teamed up with Barbour ABI to bring members deeper analysis and intelligence on the construction market. This next level of analysis will help members to forecast trends and assist in your business planning.

In this issue…

  • 9.1% increase for contract awards in November
  • Residential contract awards increase by 19.4%
  • The hottest UK Region in the UK in the commercial and retail market is Scotland (way out in front!).  This was followed by the West Midlands and South East (excluding London).

Access the reports here

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