by Clair Mooney | Feb 15, 2023 | Main News Feed
The Construction Industry Collective Voice (CICV) has followed up the results of its recent payments survey by issuing a new Best Practice Guide to help contractors and subcontractors improve cashflow and prevent costly and damaging disputes
Compiled by more than a dozen industry experts, the in-depth guide offers a wealth of practical information, demonstrating how to take control and proactively deal with a range of issues to enhance the entire contractual chain.
As part of its mission to improve the sector, the open source publication is being supported by an upcoming webinar on Friday 3 March that will see experts from the CICV talk through the guide and offer further insights into preventing financial disagreements.
Both resources have been produced in response to last week’s CICV survey on payment and cashflow issues in the industry in Scotland, which revealed that businesses are still suffering the scourge of late payments, outstanding retentions and unexpected charges.
Iain McIlwee, FIS Chief Executive said:
“It has been great to work colleagues from across the CICV to develop this guidance. It is vital that the supply chain becomes more contractually aware and fully understands the risks they are being asked to carry. This document is something every contractor should use to ensure that they and their teams are contractually aware and making good decisions. It is a great training tool too for those joining the sector. The CICV is an amazing force for good and we are very proud to be part of it.”
Industry consultant Len Bunton, who is Chair of the CICV Pipeline and Commercial sub-group, said:
“Following the recent CICV survey, we concluded that the contracting supply chain needed some guidance on improving the commercial management of projects.
“Our highly-experienced contributors have walked through the construction process, giving their best recommendations on how to do things better day-to-day. A lot of the problems we deal with are self-inflicted, so we have gone back to the basics of improving the way in which commercial activities are carried out.
“This is not rocket science, but it’s clear the whole process needs a massive shake-up. Following publication of the guide and our webinar to take the supply chain through it, I am confident we can get change into the UK industry.”
As the latest initiative from the respected industry body, the Best Practice Guide is free to download from the CICV website and looks at a number of areas of interest, including:
- Tender qualifications
- Contract amendments
- Payment schedules
- Payment applications
- Payments received and value
- Variations
- Retentions
- Fluctuations
- Notices
- Record keeping
- Quality/defects
- Conflict Avoidance Process (CAP).
The guide has been drawn up by experts from a range of industry bodies, including Mr Bunton, Finishes and Interiors Sector CEO Iain McIlwee, Scottish Building Federation Commercial Director Ian Honeyman and the National Hub Programme Director of Scottish Futures Trust, David MacDonald.
Mr Honeyman said:
“Agreeing a mutually beneficial and collaboratively agreed contract is the first, vital stage in any construction project, and an area in which can lead to costly and damaging disputes.
“The CICV has therefore looked at the most common reasons for payments being delayed and changed, and has prepared this guide to help companies and individuals understand how to avoid them.”
CICV Chair Alan Wilson, who is also Managing Director of electrical trade association SELECT, said:
“Being paid on time and receiving what you’re due in full is essential for the survival and growth of every business, so this guide and accompanying webinar will help contractors and sub-contractors improve the commercial management of building contracts.”
The Best Practice Guide and webinar are the latest in a string of practical and constructive initiatives launched by the CICV since its creation as the Construction Industry Coronavirus (CICV) Forum in March 2020.
Made up of 28 trade associations, professional services bodies and companies, it has maintained a steady supply of information and practical advice to the sector as well as carrying out surveys, producing animations and posters, hosting webinars and maintaining close dialogue with Scottish Government ministers.
The CICV Best Practice Guide can be downloaded here and you can register for the upcoming webinar here.
by Clair Mooney | Feb 14, 2023 | Main News Feed
As construction output is expected to grow the finishes and Interiors sector needs to recruit new entrants iso that it can keep working. The STEM Ambassador Programme is partnered with the Construction Industry Training Board (CITB) to facilitate the Go Construct Construction STEM Ambassador scheme. Through this collaboration, they aim to showcase the amazing career opportunities in construction and inspire young people to work in the industry.
CITB approached FIS to produce presentation films designed to encourage young people to consider a career as a Dryliner. The films are now in the editing stage and should be available soon. Iain McIlwee and Oscar Venus have committed to become Construction STEM Ambassadors for the sector, mainly so they can provide advice to FIS members through their own experiences and encourage more people to become FIS Construction STEM Ambassadors. Marie Flinter has devoted time to learn and understand the scheme so she can offer support to those going through the process.
Go Construct STEM Ambassadors act as the face of the industry for young people, inspiring them to consider a career in construction and the built environment through sharing their experiences and promoting opportunities. The commitment is to be involved in at least two activities per year. Ambassadors lead a wide range of activities, including:
- Running a trade stand at a careers fair, answering questions and handing out leaflets.
- Delivering a talk, sharing your experiences of getting into and working in the industry.
- Leading practical sessions or workshops, giving young people a taste of life in construction.
- Providing one-to-one mentorship to someone who is just starting out.
- Helping teachers to develop curriculum resources and activities.
- Network with like-minded professionals, developing your own career as an ambassador.
Not only is becoming a Go Construct STEM Ambassador a great way to develop your employability skills and become a part of a community, through activities you will be helping to inspire the next generation of construction workers and change perceptions about the industry and the finishes and interiors sector!
Still need convincing, why not check out Go Construct’s top 10 reasons to become a GO Construct STEM Ambassador. Or give Marie Flinter a call on 0121 707 0077 or 07799 903103 or email marieflinter@thefis.org. If you are already a registered STEM Ambassador working in the finishes and interiors sector, please let Marie know, FIS will then be able to provide specific to your needs.
by Clair Mooney | Feb 7, 2023 | Main News Feed
Construction businesses in Scotland are still suffering the scourge of late payments, outstanding retentions and unexpected charges, a new survey by the CICV has revealed.
Some 68% of respondents said their payment terms were altered negatively, with 60% claiming adjustments to payments were made with little or no explanation. And 69% of those surveyed said the time and cost of chasing outstanding moneys was their most significant problem when it came to payment.
The in-depth survey on cashflow and payments was undertaken to help an accurate picture of the current financial landscape in the Scottish construction industry.
Answered by those businesses which operate both as main and subcontractors in the public and private sectors, its key findings included:
- 52% reporting that they still have problems getting retentions paid
- 44% revealing that they had been hit with unexpected charges
- 40% disclosing that they “always or often” had payments reduced
- 30% saying payment delays have a “major impact” on their company.
Some 50% of respondents said they required external assistance to deal with payment disputes, with 54% saying they had referred a dispute to adjudication.
And 62% of those surveyed also said they were aware of project bank accounts, but only 17% had actually used them.
Len Bunton, Chair of the CICV’s Pipeline & Commercial sub-group, said:
“From these findings, it is clear – and also rather depressing – that cashflow and payment issues are still major problems in the construction industry in Scotland.
“It is especially frustrating to see so many financial disputed still going to costly adjudication and so little take-up of solutions like project bank accounts and the Conflict Avoidance Process – despite evidence that they do work and help to improve all-important cashflow.”
The survey also invited respondents to provide anecdotal evidence of cashflow and payment issues, along with suggestions of how to improve the current situation.
One said: “I’d like to see less subcontracting and more directly employed trades so there’s a joined-up process and effectively one large purse with collective ownership. The minute we sub-contract we divide, and priorities, focus and responsibility aren’t truly shared.”
Another told the poll: “We have problems with the public sector with too many authorisations that prolong and delay payment. A simplified process would help.”
A third added: “Many years ago, main contractors had to show proof of payment to sub-contractors before they received their next payment. Implementing such a practice for all sub-contractors would hugely improve the payment process.”
While a fourth respondent said simply: “Employers need to be held accountable and measured against the agreed payment terms within the building contract.”
The CICV is now devising a series of measures to help combat issues highlighted in the survey, including the imminent publication of a best practice guide. The collective is also planning an online webinar, offering contractors practical advice to help them avoid payment pitfalls.
David MacDonald, who is also a member of the CICV’s Pipeline & Commercial sub-group, added: “The many troubling issues highlighted by this survey simply reinforce the need for the industry to resolve matters before they escalate into disputes.
“The best practice guide, to be published by the CICV shortly, is designed to be used to eliminate poor commercial management and assist contractors to be much more alert to potential problems and risks.
“The planned webinar will also help contractors navigate the perilous waters of payment, which are clearly still littered with many difficulties.”
The survey is the latest in a string of practical and constructive initiatives launched by the CICV since its creation as the Construction Industry Coronavirus (CICV) Forum in March 2020.
Made up of 28 trade associations, professional services bodies and companies, it has maintained a steady supply of information and practical advice to the sector as well as carrying out surveys, producing animations and posters, hosting webinars and maintaining close dialogue with Scottish Government ministers.
- A full copy of the survey can be download here.
by Clair Mooney | Feb 6, 2023 | Building Safety, Main News Feed
The Health and Safety (HSE) and Building Safety Regulator (BSR) have recently launched several consultations and research in connection with building safety.
Professional Conduct Rules for Registered Building Control Approvers (RBCAs)
The BSR will be operating as part of the HSE from April 2023. Building control professionals will have to register with the BSR to perform building control work in England. The professional conduct rules sets out standards of professional conduct and practice that registered building control approvers are expected to meet.
The professional conduct rules are mandatory principles of conduct and standards applying to all who wish to register with the BSR as Registered Building Control Approvers (RBCA) in the private sector.
The HSE are seeking views on the proposals and the consultation closes on 17 February 2023.
Draft Code of Conduct for Registered Building Inspectors
Building control professionals will have to register with the BSR to perform building control work in England. The code of conduct sets out standards of professional conduct and practice that registered building inspectors (RBIs) are expected to meet.
The code of conduct are mandatory principles of conduct and standards of behaviour for RBIs, whether they work in the private or public sector.
HSE are seeking views on the proposed code of conduct and the consultation closes on 17 February 2023.
Managing Building Safety
The BSR is inviting views on their information document that highlights the necessary competency for those managing high risk buildings (HRBs), including a summary of the recent British Standard, publicly available specification (PAS):
- PAS 8673:2022 Built environment – Competence requirements for the management of safety in residential buildings – Specification
The consultation will close on 24 April 2023 and can be found here.
Building Safety Competence Information for Principal Contractors and Principal Designers
The BSR is inviting views on their information document that highlights the necessary competency for the new principal designer and principal contractor roles, including a summary of the recent British Standards, publicly available specifications (PAS):
- PAS 8671:2022 Built environment – Framework for competence of individual Principal Designers – Specification
- PAS 8672 Built environment – Framework for competence of individual Principal Contractors – Specification
The consultation will close on 24 April 2023 and can be found here.
HSE Research Project – Accountable Person and Principal Accountable Person
The HSE has commissioned an independent research agency, Kantar Public, to interview people working in private and public sector housing organisations who will be an Accountable Person or Principal Accountable Person; will make decisions about the role; are knowledgeable about the role; and/or who will work on important aspects of the role (such as building registration, resident engagement and complaints handling).
All interviews will be conducted by independent, experienced researchers at Kantar Public. For further information or to register your interest to participate in this research, please email marios.zampetis@kantar.com
by Clair Mooney | Feb 6, 2023 | Main News Feed
FIS has announced the shortlist for its inaugural Innovation Awards. The awards aim to shine a light on innovation, debunking the myth that our sector is not innovative.
The Awards comprise four categories, Digital, Sustainability, Product-Fit Out and Product – FF&E. A judging panel was set up for each category, who indpenedetly assesed all entries.
Digital
- FireDNA – Monitoring Passive Fire Products
- Chalkstring
- Performance Based Pay
Sustainability
- Breathaboard
- Awallsz Prefabricated Solutions
- DESSO Origin
Product – Fit Out
- eekowall
- Siderise MC Mullion Overclad
- Drywall Pro-Cut
Product – FF&E
- Rockfon
- Wiesner-Hager
- Yo-Yo DESK Ltd
Congratulations to those who made the shortlist, and thank you to everyone who entered. We will be announcing the winners at the FIS Awards Ceremony on 27 February in London. Reserve your place here.
