by Oscar Venus | 26 Jul, 2024 | Main News Feed
The Office for National Statistics released data on construction output, new orders, and output prices for May 2024.
- Estimated monthly construction output increased by 1.9% in volume in May 2024 following a 1.1% decline in April 2024 (revised from 1.4%).
- The rise in monthly output was driven by growth in new work (2.7%) and repair and maintenance (0.8%). Warmer weather was cited as a factor contributing to the increased output in May, with the Met Office confirming in their Monthly Climate Summary that May 2024 was the warmest on record.
- Eight out of nine sectors experienced growth in May 2024. The main contributors to the increase were a 2.8% rise in total new housing, infrastructure new work up by 3.5%, and non-housing repair and maintenance growing by 2.1%.
- Construction output is estimated to have decreased by 0.7% in the three months leading to May 2024, with new work falling by 0.9% and repair and maintenance by 0.3%.
by Oscar Venus | 26 Jul, 2024 | Main News Feed
The Department for Business and Trade (DBT) has confirmed that the draft legislation to amend the Reporting on Payment Practices and Performance Regulations to introduce new metrics on retentions has been withdrawn.
This is as a result of the General Election, which means there is now insufficient time for the legislation to be completed before the intended commencement date of 1 October 2024, and DBT is working with the new Ministers to confirm a revised date.
New metrics on the value of invoices paid and disputed invoices will still come into force as planned from 1 January 2025. In Scotland, Scottish Government have issued a new Construction Policy Note (CPN) on retentions that look at tightening requirements of reporting retention policy, but does not put any onus on recording levels of retention held.
Commenting on this delay, FIS CEO Iain McIlwee stated:
“This is disappointing as a huge amount of work went into getting this reform laid down and to be thwarted at the 11th hour by a snap election and drawn out parliamentary process is frustrating. That said, to our mind more could be done and we will be bringing our recommendations about automatic release linked to prescribed dates and liability limited to scope of works to the new Construction Minister at the earliest opportunity”.
The FIS has laid down a number of recommendations to reform retention in our Blueprint for Better Construction here
by Oscar Venus | 25 Jul, 2024 | Employment, Labour, Main News Feed
With new home building targets and a pent up pipeline of high rise residential and commercial projects, the respite from labour shortages in the sector are likely to be short lived. FIS is exploring two interventions that can support members in finding work ready people.
How can you get involved in Bootcamps?
FIS Bootcamps will initially target trade roles. The programme involves an period of intense training to get people site wise and trade aware before letting them loose on site. These are similar to the successful Build Back model that FIS ran several years ago, but funding is more flexible and can be tailored more effectively for the businesses offering work experience.
To get these off the ground FIS will be collaborating with training providers and the Department for Education. The programme is zero cost to employers. The funding provided through the Department of Work and Pensions (DWP) covers the initial training and induction of the candidates – the employers involved need to offer work trials and/or employment. The process identifies and recruits candidates from the local area and will include self-employed Green CSCS Cardholders, prison leavers and job seekers. The Bootcamp presents an great opportunity to tap into the local labor market and support your recruitment as well as assist with delivery of Section 106 and equivalent social value requirements. The training locations span across London, Essex, Suffolk, Greater Manchester Combined Authority, West Yorkshire Combined Authority, and North East Mayoral Combined Authority. The aim is to onboard over 100 new Drylining candidates in England between September and January 2025 through these bootcamps based on cohorts of 12 candidates .
Your support for this initiative is crucial. Whilst no commitment to employ candidates is required, we will not be starting cohorts without employer support and we would ideally like to involve you from the candidate assessment stage.
If you are interested and can think you can support a drylining home building, taping and jointing or commercial drylining bootcamp let us know. You can set up a dedicated cohort (if you can commit to 12 work placements) or you could commit to supporting a smaller number and we can look to collaborate with other employers. To stress you will not be expected to fund the training or employ unsuitable candidates, but you will be required to offer work trials.
If you want to find out how FIS Bootcamps can work for you please contact Beena Nana.
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 are 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.
by Oscar Venus | 18 Jul, 2024 | Main News Feed
The King’s speech is the opportunity for a new Government to set out their stall and lay before Parliament a programme of legislation that the new Government intends to pursue in this parliamentary session.
The speech set down that “Securing economic growth will be a fundamental mission” and it is clear that the new Government do recognise the importance of construction in this, particularly housebuilding with the King adding “My Ministers will get Britain building, including through planning reform, as they seek to accelerate the delivery of high quality infrastructure and housing”. Whilst this doesn’t differ greatly from statements made by successive governments, it is encouraging to see it balanced with recognition that “They will also pursue sustainable growth by encouraging investment in industry, skills and new technologies.” To unlock growth we to review of how procurement is managed to support investment. Successive Government have demanded Industry does, if this Government fails to listen and act this will be more empty wishes – we can’t deliver without the right support from the top.
The Speech heralds the arrival of new Construction Minister Sarah Jones MP – the revolving door of Construction Ministers has not helped support consistency in policy and regulation (5 in 10 years is not evidence of the commitment to construction that we need!).
Another notable appointment is that Angela Rayner Deputy Prime Minister is confirmed as Secretary of State for Housing, Communities and Local Government an takes charge of the re-named Ministry of Housing, Communities & Local Government (MHCLG) and will be overseeing the development of the Building Safety Act and corresponding Building and Construction Products Regulations.
In terms of further details, Bills that particularly impact the finishes and interiors sector are:
- Planning and Infrastructure Bill ‐ The Bill will speed up and streamline the planning process to build more homes of all tenures and accelerate the delivery of major infrastructure projects.
- Skills England Bill ‐ Establishing ‘Skills England’, a new partnership centred around employers designed to ensure the supply of skills, as well as reforming the Apprenticeship Levy.
- English Devolution Bill ‐ Giving new powers to metro mayors and combined authorities to support local growth plans.
Read the Full Script of the Kings Speech here
The FIS will be working closely with specialist construction bodies and using our Manifesto: Blueprint for Better Construction to advise the Construction Minister and new MPs on the levers and opportunities to improve construction.
by Oscar Venus | 18 Jul, 2024 | Main News Feed
Scottish Government have issued three new Construction Policy Notes (CPN) on retentions, pipeline and procurement practices in construction.
Reporting of Retention Policies CPN 1/2024
CPN 1/2024 is another step towards Scottish Government’s long-term aspiration to reduce and remove the need for retentions. It focusses on visibility of policy and practice across the public sector. The aim is to measure the implementation of CPN3/2022, introduced in February 2023 that “requires retentions, where they are considered necessary, to be applied carefully and fairly as the commercial element of a project delivery strategy seeking to eliminate potentially defective work”.
CPN 1/2024 advises public bodies of new requirements for publishing information on their use of cash retention in construction contracts. To achieve this, it requires each public body in scope of these provisions to undertake the following actions:
- by 31 August 2024, publish a retention policy statement on its website and then review and where necessary revise it by each subsequent 31 August thereafter
- from 20 February 2025, publish a retention policy compliance statement on its website for every project, initially as soon as possible after practical completion, whose contract was awarded on or after 20 February 2023
This CPN is designed to support two recommendations, agreed by Scottish Ministers, from the report of the short life working group on retentions. They will be incorporated into the Retention in Construction Contracts chapter of The Client Guide to Construction Projects with the following aims:
- to raise awareness of retention use in the public sector
- to promote transparency among public bodies
- to facilitate knowledge, understanding and decision-making among contractors
It should be useful to companies in the supply chain too in ensuring that they are not having retentions imposed that extend those in upper contracts.
Challenging lowest price procurement (CPN 3/2024)
CPN 3/2024 is entitled “Graduated Pricing Mechanism Guidance” and focusses on detailing an alternative method of determining the price score in tender assessments – the Graduated Pricing Mechanism (GPM). This alternative method, will be incorporated into “Chapter 7: Construction Procurement Route Two” of the Construction Procurement Handbook of the Client Guide to Construction Projects. The aim here is to assist public bodies plan, procure and manage construction projects and support contractors and consultants in developing their understanding of how the public sector delivers construction projects. It is applicable guidance under the Scottish Public Finance Manual.
The notice recognises that Whilst the policy requirements for tender evaluation are to assess both price and quality, the misconception that lowest price always wins encourages some contractors to adopt the poor practice of submitting artificially low tender bids. To reduce the incentive to submit artificially low bids, the GPM has been introduced to diminish advantage to be gained by such practice. Construction Procurement Handbook, Chapter 8: Abnormally Low Tenders provides guidance to assist clients identify and handle abnormally low bids.
The Graduated Pricing Mechanism (GPM) is a consistent method that can be used to calculate the price score of tender submissions which respects the principle of equal treatment but reduces the incentive to submit low bids. The principle is that the lowest price is awarded the highest score (i.e. 100 marks) with other prices submitted incurring a percentage deduction to their score depending on their distance from the lowest price and proximity to the median price. Further details of the methodology are set out in the link below.
Setting out the construction pipeline (CPN 2/2024)
Finally CPN 2/2024 draws attention to the Construction Pipeline Forecast Tool and encourages all public bodies to upload data on their planned and potential construction projects over £200,000. The Tool provides a centrally coordinated repository for recording where and when future construction work is likely to be conducted by the public sector. It has been developed in partnership with industry and public bodies.
What are CPN’s
Construction Policy Notes (CPNs) alert contracting authorities to new policy, guidance and other matters relating to public sector construction. Whilst Local Authorities, or other bodies not governed by the Scottish Public Finance Manual, are not under obligation to take or follow Scottish Government advice, they are strongly encouraged to carefully review Scottish Government guidance and apply it where appropriate.
by Oscar Venus | 17 Jul, 2024 | Main News Feed
The FIS working groups will reconvene towards the end of Q3 and into Q4 of 2024. Each group will pursue its individual goals during this period. These gatherings provide a wonderful chance to witness firsthand the essence of FIS as a community for its members and the broader interiors community. If you’ve been curious about FIS or contemplating participation, these events offer a perfect opportunity to immerse yourself in the experience. Make sure to mark these dates on your calendar!
- Drylining Working Group – 24th September
- Partitions & Pods Working Group – 2nd October
- Operable Walls Working Group – 5th November
- SFS Working Group – 19th November
- Ceilings & Absorbers Working Group – 21st October
Each of these sessions will be hosted by industry experts who are keen to share their knowledge and insights. Whether you are a seasoned professional or just starting out, there will be plenty of opportunities to learn, network, and collaborate with like-minded individuals.
Additionally, these working groups are designed to be interactive, encouraging participants to engage in discussions, share their own experiences, and directly contribute to ongoing projects. This is a unique chance to influence the future of the interiors sector and stay ahead of industry trends.
To secure your spot, make sure to register early as spaces are limited. We look forward to welcoming you to these informative and dynamic sessions, where together we can shape the future of the interiors industry.
For more information and to register, please contact the FIS team. See you there!
