FIS Members invited to HS2 “Meet the Bidder” event

FIS Members invited to HS2 “Meet the Bidder” event

FIS Members have been invited to attend the Meet the Bidder event hosted jointly by the Civil Engineering Contractors Association (CECA) and HS2.  Tier 1 contractors Taylor Woodrow and Gulermark are seeking to engage their supply chains for HS2’s development at Washwood Heath, Birmingham.  This event will offer the chance to understand the opportunities available and for those attending to have 1-2-1 meetings with the short-listed tenderers.

The event will take place on the 7th December 10am – 1pm and will be hosted on MS Teams.

The buyers for this session are seeking bidders in the following areas:

#General #civils and #RC work
#Drainage and #utilities
#Highways #pavements and #surfacing
#Landscaping
#Fencing
#Street #lighting & #EV #charging
#Secondary #steelwork
#GRP platforms
#Building #envelope (#cladding #roofing #glazing #curtain walling)
#Internal and #external doors
#Buildings #fitout (#drylining #ceilings #flooring #carpentry #floor #finishes)
#Insulation (#waterproofing #fireproof)
#Floor & #wall #finishing (#ceramic #vinyl #wood)
#Specific #ceilings & #floors (#raised #floor #works #acoustic #ceiling)
#Epoxy #floor #finishing
#Painting
#Windows & #glazing #supply & #install
#Doors (#fire #doors #folding #doors #wooden #doors)
#Street #furniture

If you wish to participate, please email marieclaudehemming@ceca.co.uk

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New Passive Fire Protection Inspection qualifications launched

New Passive Fire Protection Inspection qualifications launched

Independent Fire Training Ltd has taken the next steps as part of their competency framework to further develop three of their existing courses into formal Ofqual regulated qualifications and are excited to introduce the new courses and qualification delivery from January 2023.  All candidates sitting these courses and passing the theory and practical assessments will receive a formal qualification, the first of their types within the industry!

FIS has partnered with Independent Fire Training to offer all members a 10% discount on these new qualifications for courses purchased before 1 January 2023.

  • Level 3 Award in the Inspection and Testing of Fire Stopping Installations
  • Level 3 Award in the Inspection and Testing of Fire-Rated Ductwork and Damper Installations
  • Level 3 Award in the Inspection and Testing of Fire-Rated Steel Intumescent Coating Installations

There are course dates scheduled for 2023. If yor are interested in booking, contact Independent Fire Training on 01522 904189 Opt1, email info@thefiretraining.co.uk or take a look at the website www.thefiretraining.co.uk

With the implementation of the Building Safety Act 2022 and the supporting legislation upcoming, there has never been more of a focus on the competency of those working in fire safety roles and responsible positions within the industry.  In line with this, the decision was made to further improve these courses and have them regulated as qualifications, to support the recognition of competency requirements within the industry.

Collaborative risk sharing will be key to preserving industry resilience

Collaborative risk sharing will be key to preserving industry resilience

Construction Product Availability: 23 November 2022

Statement from John Newcomb, CEO of the Builders Merchants Federation and Peter Caplehorn, CEO of the Construction Products Association, co-chairs of the Construction Leadership Council’s Product Availability working group

Product supply continues to improve, with the availability of building materials and products overall now at its best since pre-pandemic levels last seen at the end of 2019.

The restricted supply of semi-conductors, however, continues to challenge manufacturers of electro-technical products and gas boilers, though stock volumes are recovering. With current demand in the UK still outstripping supply, coupled with ongoing capacity and logistics issues in Asia, extended delivery times are likely to remain until the middle of 2023 and inflationary pressures will persist for these products.

There is a plentiful supply of timber in the UK and prices have reduced for popular groups such as CLS; however, log prices in Europe and North America are still strong and production is being reduced to reflect demand in the UK and Europe This could lead to gaps in the supply chain if demand rises suddenly but should not be a major issue if demand continues at current levels.

As mentioned in previous statements, birch plywood – currently a sanctioned good from Russia – is in short supply and some sectors will need to look at alternatives. Birch plywood can be legally sourced from Finland and Latvia but users should request full due diligence. Any imports of birch or birch furniture products from China and Vietnam will be manufactured from wood from Russia, which cannot be legally sold in the UK.

Inflationary pressures rather than availability present the main challenges for energy intensive products such as glass, concrete, cement, PIR, plasterboard and bricks. A warm autumn has helped reduce demand for gas but going into colder winter months prices may rise again. It is also unclear what financial relief from government will be available to energy intensive manufacturers in the spring when the current scheme is due to finish.

In his Autumn Statement, the Chancellor of the Exchequer announced a package of tax rises and spending cuts intended to stabilise the economy and lay the foundation for growth. Nonetheless, the near-term outlook will be challenging. While large-scale infrastructure projects will continue and larger housebuilders are currently maintaining volumes, we are already seeing a slight decline in starts by smaller housebuilders and a steady erosion of work in the home improvement sector as homebuyers and customers feel the pressure of rising living costs and interest rates.

We are also seeing a sustained, high level of construction firm insolvencies, particularly amongst SME builders and specialist contractors. This is in part the result of firms that became vulnerable during the pandemic now being wound up due to pandemic support being withdrawn. Other insolvencies are linked to economic uncertainty and the difficulty of reconciling fixed priced contracts with price inflation and reduced cash flow. Collaborative risk sharing will be key to preserving industry resilience and capacity moving forward.

For all the work FIS is doing around inflation and availability, including recommended contractual terms click here

 

CGR crowned winners of FIS Fit Out World Cup

CGR crowned winners of FIS Fit Out World Cup

To celebrate the World Cup, FIS hosted its own Fit Out World Cup Tournament for members and the wider community earlier this month at Sutton Coldfield Town Football Club. The event raised a fantastic £1,200 for the Lighthouse Club, a Construction Industry Charity that provides emotional, physical and financial wellbeing support to construction workers and their families.

Eight teams took part in the competition, battling it out in seven, 10-minute matches to produce the top two teams. Midlands Mafia (DCL) and CGR (CG Reynolds) went through to the final game, with CGR holding on to their early goal and winning 1-0.

A huge thanks to everyone that took part, and congratulations to CGR on lifting the Fit Out World Cup! You can see more pictures of the day over on our Facebook page

Private sector Construction Playbook published

Private sector Construction Playbook published

A group of businesses within the construction sector have joined forces to produce a landmark publication aimed at combatting low productivity in the industry.

The goal is to promote trust and collaboration in a highly fragmented industry that can lack transparency. This in turn will help the industry reduce waste, address the skills shortage, and reduce the impact of low margins and investment in UK construction.

The need for action is clear: UK construction productivity growth fell by an average of -0.6% each year between 1997 and 2019 according to Oxford Economics. Over the same period, the productivity of the whole UK economy rose by 2.8%, while the productivity of manufacturing grew by 3.9%.

In real terms, this means that a larger workforce is now required to match historical output, making construction increasingly expensive and leading to a downward spiral of low margins and low investment. Operating under such conditions makes innovation more challenging.

The playbook aims to tackle these problems by encouraging clients, their construction teams and suppliers to work in a more collaborative way to help boost productivity, quality and value. In doing so, they can improve the health, safety and wellbeing of the workforce, reduce carbon and positively impact both the performance and image of the industry.

‘Trust and Productivity: the private sector construction playbook’ has been produced by some of the UK’s leading developers, contractors, architects, engineers, professional services providers and suppliers, under the umbrella of the Construction Productivity Taskforce – a specialised cohort founded by productivity champions Be the Business. Their view is that increasing productivity is essential if we are to cope with increasing skills shortages, use resources more effectively and be able to invest in sustainable infrastructure that meets net zero carbon commitments.

Simon Gorski, Executive Sponsor of the Private Sector Construction Playbook Working Group, and Managing Director, Construction, Europe, Lendlease, said:

“This landmark publication sets out a more productive and sustainable way forward for our industry. Productivity in the UK private construction sector has long been an issue, and while progress has been made in trying to address this, our industry is still blighted by a lack of openness and transparency. I’d like to thank my colleagues across the industry whose leadership has been essential in developing this document. Alongside the Government’s Construction Playbook, I am pleased that the whole industry now has the opportunity to deliver better project and programme outcomes for clients across the private and public sector.”

‘Trust and Productivity’ draws on the experience and expertise of some of the most successful organisations in the UK’s construction sector to set out ten key drivers for success that should underpin any project, while also providing a guide for all points in the project life cycle, from concept through to aftercare. Those ten drivers are:

  • Form effective partnerships: Teams not collaborating effectively, team members pulling in different directions, and too much risk unfairly loaded onto one of the parties to a contract creates tension and mistrust from the start. Defined goals need to be agreed at the outset. These should be embedded in a project charter, which sets out clearly the shared objectives, values and measures of success.
  • Adopt portfolio and longer-term contracting: Historically, there has been a perception that partnering-based approaches do not deliver value and can stifle innovation. However, when applied in a transparent way, partnering can deliver value and drive innovation, while also providing consistency, improved quality and reduced risk. The business resilience of the supply chain is boosted by a longer-term pipeline of future work. This also encourages investment in innovation and the workforce. In return, clients benefit from improved delivery.
  • Take an outcome-based approach: This should resolve gaps between design intent and in-use performance, emphasising the need for improving whole-life value, performance measurement, sustainability, programme and cost certainty, and allow for innovative solutions from the supply chain.
  • Embed digital information flows across the whole life of the asset: Increased use of digital information processes and technologies will reduce programme time and whole-life cost, and enable buildings to be delivered more cost effectively, while reducing risk and enabling the smart use of buildings during operation.
  • Involve the supply chain early: Early engagement with manufacturers and specialist contractors improves the efficiency of the design and the design process through a better understanding of manufacturing capabilities, logistics constraints and on-site buildability.
  • Benchmark objectives: By using key performance indicators across a range of criteria, teams can see where they are succeeding and where they are not. If the project is falling behind its benchmarks, action can be taken swiftly to get back on track. One of the aims of teams should be to measure productivity.
  • Allocate risk fairly and appropriately: The allocation of risk needs to be decided by evaluating the project, using experience, expertise and knowledge. The party best placed to manage the risk should take the leadership role and should also encourage collaborative thinking among all parties.
  • Pay fairly: Trust and collaborative partnerships can only be established if fair payment is in place. Best practice, as set out in the Construction Act 2011 amendment, should be adhered to at the very least, and embedded in all construction contracts, with any amendments taking into consideration supply chain implications and risk allocation.
  • Assess the economic and financial standing of suppliers: Minimising the risk of failure in the supply chain is crucial for the efficient delivery of a project. The financial strength of all supply chain partners should be assessed during the selection process. Assessments should be transparent, objective and non-discriminatory.
  • Promote innovation and continuous improvement: Innovation through using digital information processes and digital technology, adopting modern methods of construction and designing for manufacture and assembly can improve productivity, reduce waste and drive significant reductions in lifetime carbon emissions.

‘Trust and Productivity: the private sector construction playbook’ has received endorsements from industry bodies including the Construction Leadership Council and British Property Federation.

Anthony Impey MBE, CEO, Be the Business, said:

“I’m delighted to see the construction industry taking such positive steps to increase their productivity. The private sector construction playbook should act as the cornerstone of a more productive sector and provide inspiration to other industries to do the same.

“Placing collaboration at its core, this document provides clear guidance on how to drive higher productivity outcomes for the sector, key to sustainable growth within the industry and the UK economy as a whole.”

Nigel Webb, Chair of the Construction Productivity Taskforce, and Head of Development, British Land, said:

“By increasing productivity, the construction industry can play a vital role in driving economic growth, supporting the UK’s net zero ambitions and improving the economic health of the sector. This playbook seeks to identify ways to address some of the issues limiting construction productivity. I would encourage clients, contractors, designers and supply chain members to engage with the playbook and start to measure and identify ways to improve productivity.”

Guidance for dealing with retentions payments under NEC Contracts

Guidance for dealing with retentions payments under NEC Contracts

The Construction Leadership Council (CLC) in collaboration with NEC has today published joint guidance to industry on the use of retention clauses under NEC3 and NEC4 Engineering and Construct Contracts (ECC), and sub-contracts.

The publication explains how NEC contract suites deal with defective work and retentions, and to explain that a retention fund may not, in fact, be needed.

The contractual practice of retention payments is intended to provide security against defective work, and the insolvency of businesses in the construction supply chain. The principle is to secure performance and incentivise the elimination of defects in an industry where the quality of work remains inconsistent. However, they can create problems for businesses throughout the supply chain due to the late and non-payment of retentions or through upstream insolvency.

This work forms part of the CLC ambition of moving to zero retentions by 2025, through reducing or eliminating defective construction work and having a procurement and delivery model that recognises, incentivises and rewards consistent high-quality work.

Commenting on today’s publication, Steve Bratt, Chair of the CLC’s Business Models Workstream said:

“The long-term aim is to eliminate the need for retentions altogether. This guidance illustrates that often the need for retentions can be avoided through good contract management and selection of contractors with a good track record of quality work.”

“I would like to thank the NEC Board for their collaborative approach to working with CLC colleagues on this longstanding, contractual issue.”

Speaking on behalf of the finishes and interiors sector, FIS CEO, Iain McIlwee stated:

“This is welcome and definitely a step in the right direction.   The retentions debate has raged for decades and progress has been slow at best, but the world is changing rapidly and we cannot let past procrastination dampen our ardour to deliver change.  It is widely agreed now that retentions contribute towards many of the negative behaviours in the sector.  The Retentions Roadmap outlines a voluntary phased approach to moving towards the objective of zero retentions by 2023, clearly this is unlikely now, but no later than 2025 has to remain as an achievable goal.  If we want genuine transformation, we need to be bold.  I would urge JCT, which tends to be the more common contract in our sector, to take similar steps in the immediate future.”

Peter Higgins, Chairman of the NEC4 Contract Board said:

“The construction industry has traditionally thought of a retention fund as a necessary and inevitable part of the cost of doing business, but NEC contracts took a different approach, treating retentions as an option to be used only if necessary. NEC is pleased to have worked with the Construction Leadership Council in preparing this guidance on the use of retentions under NEC contracts, and in particular highlighting when holding a retention fund creates an unnecessary expense for contracting parties.“

The guidance is available to download here.

A free webinar to support the new guidance and an opportunity to learn more is scheduled for Monday 16 January 2023 at 2pm.

To register initial interest, please contact info@necontract.com

Both CLC and NEC would like to thank all those that participated in the development of this guidance, in particular, Peter Higgins of PD Consult on behalf of NEC, and Andrew Croft of Beale & Company Solicitors LLP and Claire King of Fenwick Elliott LLP on behalf of CLC.