by Clair Mooney | Sep 8, 2022 | Main News Feed
With insolvency risk beginning to rival inflation as a threat to the industry, Director of KPMG’s Major Projects Advisory Team Joe Manning has outlined how to identify and respond to signs of insolvency in the supply chain. A combination of the following warning signs may indicate that a company on site is in distress:
- A high turnover of staff
- A general decrease in labour
- A slowdown in the progress of the works or the works not achieving project timescales or milestones
- Poor quality workmanship and/or an increase in defects
- Removal of plant, equipment and/or materials
KPMG has published a summary on preserving value under supply chain pressure which includes the measures that can be put in place to protect against insolvency and the steps that should be taken in the event that it occurs.
by Clair Mooney | Sep 8, 2022 | Main News Feed
The latest information from Builders’ Conference shows that 460 contracts worth £6.2 billion were awarded in August. Both the number and value of contracts were higher than the monthly average over the last year, which is particularly encouraging given that August is traditionally quieter due to the summer holidays. It was a strong month for the public sector, which accounted for 39% of all contracts awarded by value, including two prison contracts totalling £650 million and three water and sewage projects worth £505 million. In the private sector, there were 136 housing projects worth £1.9 billion (30%), 24 industrial projects totalling £326 million (5%), and 67 office projects worth £319 million (5%).
The number of tender opportunities was still 8% below the previous month and, with the new Prime Minister now in place, the industry will be hoping that continued investment in infrastructure together with a plan to deal with rising inflation will sustain activity for the rest of the year.
by Clair Mooney | Sep 8, 2022 | Main News Feed, Sustainability
Eco-I North West is a practical, interactive project aimed at North West based SME’s that are starting their low-carbon innovation journey and are looking for opportunities and support to become a low-carbon business.
It is being run as two ‘in-person’ workshops held on campus at Manchester Met.
Dates: Wednesday 12 October 2022 & Wednesday 19 October 2022
Time: 10.00 to 16.00 (with lunch provided)
Location: The Salutation, 12 Higher Chatham Street, Manchester, M15 6ED (Part of Manchester Metropolitan University’s Campus).
Cost: For NW based SME’s the project is fully funded via ERDF.
What will be covered
During COP26 the UK Government announced plans for firms to show how they intend to hit net-zero. For those who have not engaged with the sustainability agenda before, or those who have looked at the scale of the challenge and wondered what they can do next to avoid the challenges of things like clean air bills and bans on red diesel fuel, this can feel like a daunting proposition.
On the 12th & 19th October, Manchester Metropolitan University are holding a two-day interactive workshop to help North West SMEs begin their sustainability journey through the development of long-term net-zero action plans, with a particular focus on innovation. The programme will cover: the basics of the climate emergency; understanding your business and its environmental impacts; identifying opportunities for innovation; and, how to develop pathways that can take businesses from current to next practice. Following the workshops, participating businesses will also have the opportunity to work closely with Manchester Met academics to implement innovations in their organisation through things like biofuels, hydrogen, 3D printing and more.
If you are interested in learning how your organisation can adapt to the threats and opportunities posed by the climate emergency and how it can not just survive, but thrive in a net-zero world, then you can register your interest and arrange an informal chat about the project, by completing the EOI form on the website ECO-I North West · Manchester Metropolitan University
by Clair Mooney | Sep 6, 2022 | Contractual and Legal, Main News Feed
The second in our series of short blogs by FIS Consultant, Len Bunton on contractual and commercial issues he experiences when supporting FIS members and the wider community – it is designed to help FIS Members avoid common traps and build on our focus on collective experience.
My phone is ringing a lot just now with clients saying – “we need help as we are not getting paid.” Is that going to improve, and I would say no in the current market conditions. What business in the construction industry need to do is to become much more focused, and commercially smarter in dealing with the financial aspects of their projects.
So here are a few suggestions…
by Clair Mooney | Aug 30, 2022 | Main News Feed
The CPA Techincal and Regulatory team have updated the latest paper regarding areas of concern on the UK-EU Trade and Cooperation Agreement. This is set as a result of the post-Brexit UK-EU Trade Deal, particularly around the transition from CE Marking to CA Marking. To read more on the subject, you can access the paper here.
FIS CEO Iain McIlwee stated:
This is worrying long list given the time available. We need to be having conversations with the supply chain and checking our contracts to ensure that we are not going to get landed with liquidated damages because availability of a product or component becomes an issue. We continue to ask members to come forward with any specific problems that they face and to work with the CPA, CLC, Civil Service and our political masters to ensure that we don’t leave construction in the lurch because of practical problems resulting from political indecision and resource”.
by Oscar Venus | Aug 25, 2022 | Contractual and Legal, Main News Feed
This is the first in a series of short blogs by FIS Consultant, Len Bunton on contractual and commercial issues he experiences when supporting FIS members and the wider community – it is designed to help FIS Members avoid common traps and build on our focus on collective experience.
There is nothing worse for sub-contractors than doing work on site and not getting paid for it. So how does that come about, and what can you do about it. The first thing FIS members need to do is to read the terms of the sub-contact you are offered, to identify any high-risk issues. If you are too busy, then there are plenty of experienced folks out there who can do it for you. Once potential problem clauses are identified, then you can raise these with the employer/contractor and try to negotiate these out. What happens if they wont budge, well I tell my clients jut to walk away, its not worth signing up to something that could put you out of business.
One area I want to focus on relates to site instructions and variations. A FIS member sent me a sub- contract recently where it states that you don’t carry out variations without a written variation instruction from the contractor, then they won’t be accepted, and if you do carry out the work then you won’t be paid. Now on many may occasions, you are working away, and the site manger says, “will you take down that ceiling and reboard it please as its been damaged by other trades.”……
