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Enhancing Risk Management: Exclusive Insurance Solutions

Enhancing Risk Management: Exclusive Insurance Solutions

At FIS, we understand the importance of providing robust insurance support to our members, which is why FIS is partnered with Construction Shield, a leader in insurance consulting.

This collaboration opens up a wealth of opportunities for our members to assess their current coverage efficiently. With the expertise of Construction Shield, you can now evaluate the effectiveness of your existing insurance policies and identify areas for improvement. Not only can you gain insights into your current coverage, but you’ll also have access to alternative quotes that could better suit your specific needs.

In our ongoing effort to keep costs at a minimum for our members, we are excited to announce that FIS will waive any commission fees associated with this service. This means that you can benefit from Construction Shield’s expertise without worrying about additional costs. Instead, the savings generated from this partnership will be rebared direct to the member.

Making a Difference

Find out how our partnerships can help you

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Update on ISG: Construction Leadership Council Speaks out

Update on ISG: Construction Leadership Council Speaks out

Following confirmation that ISG Group and all subsidiaries are entering administration the Construction Leadership Council Convened a meeting and has published the following statement

“This morning, the Construction Leadership Council convened a meeting between key construction trade bodies, education and skills providers and the Department for Business and Trade to discuss how industry should respond to ISG filing a notice to enter administration.

 

Our sympathies are with everyone across the industry who is directly or indirectly affected by the administration of ISG, and the CLC’s objective is to ensure that individuals and organisations impacted are given the appropriate support and guidance, and that as far as possible the effect on the wider sector is limited.

 

The CLC is collating detailed guidance available for those impacted and in the interim, we would advise everyone in the industry to ensure that they are managing any impact on their businesses within the terms of existing contracts, ensure that where possible payments are made promptly to suppliers and to await further information. If companies are in particular financial distress, we would encourage them to contact their relevant industry body.”

 

For the apprentices and graduates who are directly employed by ISG, Build UK and the CITB have established a working group to ensure that placements can be found for as many people as possible. If you or someone you know is an apprentice or graduate directly employed by ISG, please contact info@builduk.org in the first instance.

FIS will circulate this guidance as soon as it is available, but in the meantime, we refer members to the key points from our update on Thursday:
  • When you are able to access site (do adhere to timings provided) recover any plant, site accommodation and any records that are currently on the sites. You should avoid at all costs any damage to your completed works.
  • if you are able, take photographic, video and written records of your work in progress.
  • Accurate and detailed records will be invaluable in establishing the value of your “final account” and can be used for any negotiations with main contractor who is brought in to complete the contract.
  • You should prepare a schedule that shows a record of all outstanding payments including retentions and when these payments were due
  • If you’re currently in possession of materials that are required for the contract but have not been delivered to the site then make careful note of these.

FIS contract and legal advisors are on hand to help and some have offered additional pro bono support to members to help review contracts to ensure you are clear on your contractual position with respect to an administration event and e.g. understand Step in Rights from clients. If you need advice please send your contracts to iainmcilwee@thefis.org and we will look to undertake a targeted contract review. 

We have had a number of questions with respect to Project Bank Accounts, these should protect and ringfence any monies due – certified payments should progress.  Any applications will need to be certified and could be subject to a delay.  Clients will be looking to appoint a contractor to replace ISG.  How they are able to progress the project and the impact on existing sub contractors will depend on the contract and funding.  We will be working with CLC and pressing clients to manage transition with sensitivity to the impact on the incumbent suppliers.

Members impacted are advised to do a cash forecast and, if the situation with ISG  is forecast to cause serious financial difficulties, then we have specialist advisors available to assist you and provide guidance.

We would also ask members to send us in confidence details of the contract they are working on, size of the contract and monies owed (certified, a valuation of any completed works currently uncertified and retention).

For ease of capture we have set up a short survey for members to complete (all information will be gathered in confidence).

Our legal toolkit is here and you can call the FIS helplines on 0121 707 0077 or can email iainmcilwee@thefis.org for assistance.

Update on ISG: Construction Leadership Council Speaks out

FIS responds to concerns related to ISG Group

FIS is aware of the unfolding situation with respect to ISG.  As of today, our understanding is that ISG Construction Limited, ISG Engineering Services Limited, ISG Retail Limited, ISG Jackson Limited and ISG Central Services Limited have filed for administration.

It is important to note that ISG Fitout Limited (which accounts for around £500m and was profitable at the point of last filing) has not been included in the application.  The parent company, ISG Limited, has, so far, not applied to the court.  At this stage we do not have clarity on how these parts of the business will be impacted and you are advised to stay in close contact with your nominated contact if you are currently in contract.

Clearly this is an unsettling time for the supply chain and ISG staff members. FIS will be doing all we can to advise and support all involved.

If businesses are currently engaged by or are about to start work for any part of the ISG Group that has filed for administration, these contracts will be automatically terminated.  FIS Commercial Advisers have indicated that it is highly likely that all affected ISG sites will be shut immediately.  Any claim will be managed by the appointed administrator in due course.  It is suggested that you still attend at your sites and recover any plant, site accommodation and any records that are currently on the sites.

If you are able to access site, then it is important that you take photographic, video and written records of your work in progress.  These records will be invaluable in establishing the value of your “final account” and can be used for any negotiations with any main contractor who is brought in to complete the contract.  You should prepare a schedule that shows a record of all outstanding payments including retentions and when these payments were due, if they are unpaid.  If you’re currently in possession of materials that are required for the contract but have not been delivered to the site then make careful note of these and further advice will be provided in due course as matters unfold.  You should avoid at all costs any damage to your completed works.

It will be helpful if you could send any information regarding the status of projects to FIS. In order to ensure we can provide the best possible advice and support, please forward any communications that you receive from the employer, the design team and also the Administrator in due course.

FIS and our advisors will do all we can to support members and we will be working with colleagues from across construction, Government and stakeholder groups to provide a united response in what is a very difficult time.

Our helpline can be accessed via 0121 707 0077 or you can Email: iainmcilwee@thefis.org with any questions or concerns that you have.

Apprentice and trainees who have been employed by ISG and are looking to source alternative employment should register their details with BuildUK who are co-ordinating this aspect of the industry response and please contact info@BuildUk.org.  Other members of the team or employers in the sector who can offer alternative positions for trainees or employers, please email iainmcilwee@thefis.org.

Making use of Sector Based Work Academies

Making use of Sector Based Work Academies

Sector-based work academies (SWAP) are another DWP Funded programme that can support individuals transitioning into a new field of work.  They provide training and education for those currently receiving unemployment benefits. The goal is to equip them with the skills needed to apply for jobs in a different sector.  Academies are tailored to meet the immediate and future recruitment needs of employers, ensuring the workforce is prepared to support business growth.

 FIS is working with West London College and DWP to deliver SWAPs in the area.

A key component of the SWAP model is the provision of a guaranteed job interview, work experience, or employment, enabling members to efficiently recruit candidates

Recruiting through a SWAP has many benefits, such as:

  • Employers get access to candidates who have undergone relevant pre-employment training tailored to the specific needs of the job role.
  • Trial period for candidates
  • The work experience component of SWAP allows employers to assess candidates’ suitability and fit for the role in a real-world setting before making permanent hiring decisions.
  • By providing tailored training and work experience, SWAPs help ensure candidates are well-prepared for the job, which can lead to higher retention rates.
  • SWAPs often focus on helping unemployed individuals, including those from underrepresented groups, re-enter the workforce, enhancing workforce diversity.
  • Participation in SWAPs demonstrates a company’s commitment to supporting local employment initiatives, which can enhance its reputation within the community.

West London College have put together a short video detailing what the SWAP includes.

Please get in touch if you can support and are able to offer work experience or employment and keen to get involved in the SWAP.

FIS has a dynamic Skills Board that helps to drive our work in this space.  If you would like to join the Skills Board or have a colleague who could help target our collective effort, please do consider getting involved.  Find out more here.

Grenfell Inquiry: Key conclusions and recommendations for the finishes and interiors sector

Grenfell Inquiry: Key conclusions and recommendations for the finishes and interiors sector

The publication of the Grenfell Inquiry Report Part 2 is another landmark for our sector.  The video below is worth watching, it is the introduction to the findings and thoughts of the Inquiry Committee.  As well as a good high-level summary, the committee conveyed well the emotion that surrounds this work and the devastation that the failings identified have had on people, families and communities.  Thouria Istephan, particularly reminded us as she introduced the recommendations:

“Put simply, if you work in the construction industry and you do not feel the weight of responsibility you have for keeping people safe, you are in the wrong job”.

The Main Conclusion

The Inquiry was divided into two phases; Phase 1 which addressed the events on the night of the fire; and Phase 2 which investigated the wider situation understanding the underlying causes and mistakes and bringing forward information and recommendations that can be used to ensure a similar disaster does not happen again.

The main conclusion from the Inquiry is that deaths were avoidable and those in the tower were failed by a number of people, systems and organisations, these include:

  • The Government
  • The Tenant Management Organisation
  • The Council
  • Manufacturers
  • Certifiers
  • Architects
  • Principal and Specialist Sub Contractors
  • Consultants and
  • The London Fire Brigade

Key Points of Focus for the Finishes and Interiors Sector

On Regulation, the Inquiry concluded that:

“The system of regulating the construction and refurbishment of high-rise residential buildings that existed at the time of the Grenfell Tower fire was seriously defective in a number of respects. The statutory guidance in Approved Document B was poorly worded and liable to mislead designers into thinking that complying with its terms would inevitably ensure that the building would comply with the legal requirements of the Building Regulations.”

On Products and Product Testing the Inquiry concluded that there was “systematic dishonesty”, “deliberate manipulation” and “calculated attempts to mislead that products met the requirements”.  It also concluded that certification bodies had not effectively separated commercial pressures from their responsibilities to assurance.

It was highlighted that in the tender process parties were appointed that were clearly not competent to fulfil the functions that they were allocated.  The design process (or lack thereof) was heavily criticised.  Two key statements in the report that shine a light on the impact of cost engineering (I refuse to call it value engineering) and that reinforce why the design and procurement processes need to be better integrated and managed were:

“Although Rydon’s (the appointed Main Contractor) tender was judged to be the most competitive, it still exceeded the TMO’s budget. As a result, although the TMO had received advice from its lawyers that it would be improper to do so, it entered into discussions with Rydon before the procurement process had been completed leading to an agreement that, if Rydon were awarded the contract, it would reduce its price to an acceptable level.”

and how poor contracts and processes lead to confusion and responsibility not effectively allocated, understood or managed

 “Studio E (Architect), Rydon (Main Contractor) and Harley (Cladding Specialist) all took a casual approach to contractual relations. They did not properly understand the nature and scope of the obligations they had undertaken, or, if they did, paid scant attention to them. They failed to identify their own responsibilities for important aspects of the design and in each case assumed that someone else was responsible for matters affecting fire safety. Everyone involved in the choice of the materials to be used in the external wall thought that responsibility for their suitability and safety lay with someone else.”

There are reminders throughout that, not being told and ignorance is not an effective excuse – there were repeated failures to ask and clarify.  The report is also highly critical of the Building Control sign-off process, Building Management and the response of the fire and rescue service.

Next Steps and Recommendations

The report is a hard read, not because it is not well written – it is an excellent, accessible and clear summary of the environment and events that led to the tragedy that was Grenfell.  It is a hard read because, as was expressed by the panel, the elements that caused this tragedy have become endemic in the working practices and are part of the sector’s culture – this has to change.

The Report presents 58 recommendations.  The key ones that could impact our community are:

Revisiting the Scope of the Building Safety Regulator:  Recommend that the government draw together under a single regulator all the functions relating to the construction industry to which we have referred:

  • the regulation of construction products;
  • the development of suitable methods for testing the reaction to fire of materials and products intended for use in construction;
  • the testing and certification of such products;
  • the issue of certificates of compliance of construction products with the requirements of legislation, statutory guidance and industry standards;
  • the regulation and oversight of building control;
  • the licensing of contractors to work on higher-risk buildings;
  • monitoring the operation of the Building Regulations and the statutory guidance and advising the Secretary of State on the need for change;
  • carrying out research on matters affecting fire safety in the built environment;
  • collecting information, both in this country and abroad, on matters affecting fire safety;
  • exchanging information with the fire and rescue services on matters affecting fire safety;
  • accrediting fire risk assessors;
  • maintaining a publicly available library of test data and publications.

Revising the Definition of Higher Risk Building: To define a building as “higher risk” by reference only to its height is unsatisfactory, being essentially arbitrary in nature.  More relevant is the nature of its use and, in particular, the likely presence of vulnerable people, for whom evacuation in the event of a fire or other emergency would be likely to present difficulty. Recommendation that the definition of a higher-risk building for the purposes of the Building Safety Act be reviewed urgently.

Appoint a Chief Construction Adviser:  The minister will need to be able to turn for advice to someone who has good working knowledge and practical experience in the construction industry.  The Inquiry recommends that the Secretary of State appoint a Chief Construction Adviser with a sufficient budget and staff to provide advice on all matters affecting the construction industry, including:

  • monitoring all aspects of the department’s work relating to the Building Regulations and statutory guidance;
  • Provide advice to the Secretary of State on request;
  • bringing to the attention of the Secretary of State any matters affecting the Building Regulations and statutory guidance or matters affecting the construction industry more generally of which the government should be aware
  • Legislation and guidance

Clarify the Statutory Guidance: Recommend that the statutory guidance generally, and Approved Document B in particular, be reviewed accordingly and a revised version published as soon as possible.  Documents should be drafted conservatively and reviewed annually or promptly whenever developments make them advisable.

Fire safety strategy:  Recommend that it be made a statutory requirement that a fire safety strategy produced by a registered fire engineer (see below) be submitted with building control applications (at Gateway 2) for the construction or refurbishment of any higher-risk building and for it to be reviewed and re-submitted at the stage of completion (Gateway 3).

“A compassionate society protects the most vulnerable”:  When Approved Document B is revised, to ensure the safety of occupants, including any with physical or mental impairments, those who design high-rise buildings need to be aware of the relationship between the rate at which fire is likely to spread through the external walls and the time required to evacuate the building or the relevant parts of it.

A stay-put strategy in response to a compartment fire will be acceptable only if there is negligible risk of fire escaping into and spreading through the external wall. Calculating the likely rate of fire spread and the time required for evacuation, including the evacuation of those with physical or mental impairments, are matters for a qualified fire engineer.

Competence of Fire engineers is critical:   Recommendation that the profession of fire engineer be recognised and protected by law and that an independent body be established to regulate the profession, define the standards required for membership, maintain a register of members and regulate their conduct.  This was linked to recommendations to tighten up competency statements and a process to improve training and qualifications to support.

Certification of products and publication of test data:  Recommend that the construction regulator should be responsible for assessing the conformity of construction products with the requirements of legislation, statutory guidance and industry standards and issuing certificates as appropriate. It is expected such certificates should become pre-eminent in the market.

Copies of all test results supporting any certificate issued by the construction regulator be included in the certificate; manufacturers be required to provide the construction regulator with the full testing history of the product or material to which the certificate relates and inform the regulator of any material circumstances that may affect its performance; and manufacturers be required by law to provide on request copies of all test results that support claims about fire performance made for their products.

Architects:  Recognition that both the Architects Registration Board and the Royal Institute of British Architects have taken steps since the Grenfell Tower fire to improve the education and training of architects. Recommendation that they should review the changes already made to ensure they are sufficient in the light of findings.

Recommendation that it be made a statutory requirement that an application for building control approval in relation to the construction or refurbishment of a higher-risk building (Gateway 2) be supported by a statement from a senior manager of the principal designer under the Building Safety Act 2022 that all reasonable steps have been taken to ensure that on completion the building as designed will be as safe as is required by the Building Regulations.

Contractors:  A licensing scheme operated by the construction regulator be introduced for principal contractors wishing to undertake the construction or refurbishment of higher-risk buildings and that it be a legal requirement that any application for building control approval for the construction or refurbishment of a higher-risk building (Gateway 2) be supported by a personal undertaking from a director or senior manager of the principal contractor to take all reasonable care to ensure that on completion and handover the building is as safe as is required by the Building Regulations

Clients:  Broadly here recommendations focussed on assessing the impact of the new responsibility regime set down in the Building Safety Act

Building control:  Recommendation that the government appoint an independent panel to consider whether it is in the public interest for building control functions to be performed by those who have a commercial interest in the process.

The shortcomings we have identified in local authority building control suggest that in the interests of professionalism and consistency of service all building control functions, including those currently performed by local authorities, should be exercised nationally. Accordingly, it is recommended that the same panel consider whether all building control functions should be performed by a national authority.

A construction library:  Recommend that the construction regulator sponsor the development of a  library (i.e. a body of information, such as data from tests on products and materials, reports on serious fires and academic papers), perhaps as part of a joint project with the University of Queensland (who have a Cladding Material Library), to provide a continuing resource for designers.

Other recommendations have been made targeted at Social Housing Providers, the Fire and Rescue Service and Fire Risk Assessors as well as specific recommendations have been made to cover fire control switches, pipeline isolation valves and ageing pipework

Next Steps

The Inquiry report has opened the door to a wave of civil cases and criminal prosecutions –  the Metropolitan Police and Crown Prosecution Service still have under investigation some 19 companies and organisations, along with 58 individuals.   The likelihood is that before charges are made (the Police have said in their statement they need 12-18 months to review the findings of the Inquiry alongside their investigation) and the backlog in the Courts in navigated, we are still a few years away from people standing in the dock, but it will come.  The Inquiry has pulled no punches and individuals and organisations have been named and subjected to heavy criticism and serious allegations have been made.  

In the meantime, the Prime Minister has apologised on behalf of the Government for their identified failings and promised to speed up the re-cladding (the recent fire in Dagenham adds to the pressure here).

In terms of the recommendations, these don’t automatically become law.  The Inquiry has tried to put a foot on the throat of the Government by making a subsequent recommendation “that it be made a legal requirement for the government to maintain a publicly accessible record of recommendations made by select committees, coroners and public inquiries together with a description of the steps taken in response. If the government decides not to accept a recommendation, it should record its reasons for doing so. Scrutiny of its actions should be a matter for Parliament, to which it should be required to report annually

Some of these recommendations are a bit left field and will require significant consultation, not least bringing “everything” under one Regulator. With the Building Safety Regulator so new this will be a challenge.  Particularly here I would draw attention to Nationalising Certification, this would not be a change that could be rapidly implemented.  The arguments are well reasoned, but there is also recognition of the failures in existing oversight by Government and the UKAS organisation.

The concept of Licensed Contractors has been raised before, there is precedence internationally.  Again the devil will be in the details of the consultation, but it could also support more consistency and a tighter control over how supply chains are engaged and supported.

If I have a disappointment it is that the Inquiry hasn’t pushed hard enough onto why and how the design process failed.  It has not really gone into the “how” a lack of control around the manipulation of risk through contract has fuelled the blame game and the lack of clarity over who should have been doing what and who should have been checking what.  For me the contracts define the relationships and understanding of responsibility and are very much at the epicentre of the cultural issues that we face.  We need to be far stricter on how these are controlled and how design, procurement and contract align to help clarify responsibility and encourage collaboration.

As a final comment the report does a good job in reminding is why this process and our reaction to it is so important, it does not shirk away from the detail of how the failings referenced above caused the death of individuals – the detail is harrowing in places and rightly so.

You can read the full Grenfell Inquiry Phase 2 Report here:

GTI – Phase 2 report Executive Summary

GTI – Phase 2 full report – volume 1 (Part 1 – Introduction; Part 2 – The path to disaster)

GTI – Phase 2 full report – volume 2 (Part 3 – The testing and marketing of key products)

GTI – Phase 2 full report – volume 3 (Part 4 – The Tenant Management Organisation; Part 5 – The management of fire safety at Grenfell Tower)

GTI – Phase 2 full report – volume 4 (Part 6 – The refurbishment of Grenfell Tower)

GTI – Phase 2 full report – volume 5 (Part 7 – Replacement of the gas riser, Part 8 – The London Fire Brigade)

GTI – Phase 2 full report – volume 6 (Part 9 – The deceased)

GTI – Phase 2 full report – volume 7 (Part 10 – Response and recovery; Part 11 – Matters outstanding from Phase 1; Part 12 – The fire testing regime; Part 13 – International responses; Part 14 – Recommendations; Appendices)

Article Written by Iain McIlwee, CEO Finishes and Interiors Sector, 6th September 2024

 

Building Control Authority – update on application approvals

Building Control Authority – update on application approvals

The Building Safety Regulator (BSR) recognises the challenges and issues that recent delays to building control application approvals for higher-risk building work are causing industry.  It has published an update on those challenges and issues:
“(The BSR) is contacting all applicants who have been directly affected and we want to assure everyone that the necessary contingency is in place which will allow us to stabilise and improve the service over the coming months and for the future.  New applications will not go into the backlog and be processed within normal timelines.
“While in part the delays have arisen due to an unexpected increase in applications coming into BSR, we are also experiencing a high number of applications which are incomplete or unclear, making them unsuitable for approval. This is particularly the case for smaller refurbishment projects and work on existing buildings.
“As the regulator, we will not:

  • tell you how to comply with the requirements of the building regulations
  • provide pre-application advice on building control applications

“For some complex projects we may provide advice on the best way of staging your application. For example, multi-building projects. Advice on the buildings regulations, if needed, should be sought from competent professionals.
“We need applicants to play their part to help facilitate the process by ensuring their applications provide quality, detailed information that clearly and comprehensively demonstrates compliance with building regulations.  High-quality applications help BSR make informed decisions quickly, reducing the risk of misinterpretation and ensuring all building control standards are met.  Applications which lack the required detailed information or fail to demonstrate clear compliance will be rejected.
“Applicants do not need to contact BSR again after they have submitted their applications.  We will contact applicants directly where necessary, for example if we need to request further information or when applications are moving forward.
“Earlier this week (the BSR) shared some useful Q&A via the Construction Leadership Council on making building control applications. You can find a link at the bottom of this article.  You can also revisit the following presentations delivered at our conference in May:

“We will publish further information and resources on our Making Buildings Safer website over the coming weeks.”