by Clair Mooney | 23 Jun, 2022 | Main News Feed, Transformation
The Construction Innovation Hub is celebrating the completion of the Value Toolkit, following a successful development programme with over 200 industry partners. The announcements include the launch of a new BSI flex standard to underpin value-based decisions making in the sector.
Bringing together those who have contributed to its journey, including government, clients and industry partners, the Hub is now sharing the transition phase to adoption.
The Value Toolkit is a pioneering suite of tools that will be used by industry to embed value-based decision making in the built environment sector. It is a government funded industry-led initiative – with roots in the Construction Leadership Council’s Procuring for Value report and set to deliver on the ambitions of the Construction Playbook and the IPA’s Transforming Infrastructure Performance Roadmap.
The Toolkit has been developed to reframe the definition of value, and how it can be evaluated and measured, capturing wider, whole-life considerations around net-zero, user experience, productivity and social impact.
Working with partners and collaborating has been critical to the success and there are few corners of the sector that the Value Toolkit has not touched – from local authorities to central government departments, consultancies, contractors and specialist SMEs. The ambition is now for widespread adoption, driven by government and underpinned by industry.
Keith Waller, Programme Director at the Construction Innovation Hub, said:
This is a landmark moment for the Hub and our industry partners, and a gamechanger for construction and the built environment.
Decision making in construction has been historically driven by how much something cost, or how long it took to build. The Toolkit delivers a laser-like focus on project outcomes that delivers value beyond the bottom line, and positively affect communities and those who live in them for decades to come. It will ensure a more collaborative relationship between clients and suppliers throughout the whole life of a project”.
Construction Minister Lee Rowley MP said:
It’s good to see this new initiative come to fruition after a successful pilot. The Toolkit reflects the Government’s desire to ensure we embrace a construction procurement process that has clean, green innovation at its heart.
It complements our commitment to boost the productivity of this vital industry as part of our plans to grow the economy and create good quality jobs. I look forward to continuing to work with the Construction Leadership Council to realise this ambition.”
Rory Kennedy, Value Toolkit Strategy Board Chair and Director of Capital, Department for Education said:
This is a proud day for the many individuals, businesses and organisations who have worked tirelessly through huge collaborative effort to develop, evolve and shape the Value Toolkit.
The Value Toolkit is a powerful initiative that enables value-based decision-making – that best reflect the full range of commonly desired benefits, including better social, environmental and economic outcomes. Government, clients, and the industry all agree that a different approach to value is needed. An approach that reflects a shared ambition for a built environment that delivers more – one that provides a springboard for economic growth, enhances communities, and sustains the environment. The Value Toolkit is this new approach.
I look forward to seeing the Value Toolkit go from strength to strength as Government and industry drive wider adoption”.
Andy Mitchell, Co-Chair of the Construction Leadership Council (CLC) commented:
For far too long now we have talked cost with little or no reference to value; we have talked outputs not outcomes. The Value Toolkit seeks to see an end to this by providing a comprehensive suite of tools that will help clients and suppliers alike develop a real understanding of what is actually important as we specify, design and deliver infrastructure for people and society.
I would like to thank everyone involved in getting us to this point, and encourage everyone else to understand, use and help develop this Toolkit going forward”
More information about the Value Toolkit and how to get involved is available here.
by Clair Mooney | 23 Jun, 2022 | Main News Feed, Market data, Material Shortages
With the industry facing inflationary pressures not seen in the UK for 40 years, cost escalation is a key issue for members across the supply chain. Last week, the Bank of England raised interest rates for the fourth time this year to 1.25% and reported that “construction output growth weakened modestly as rising materials costs and labour shortages caused projects to be delayed or cancelled”.
Against this backdrop, companies need to find ways to manage the risk of cost inflation during a project and Build UK has worked with Wedlake Bell LLP to publish guidance, which is available to FIS members. Managing Price Inflation includes practical advice on fluctuations clauses, negotiating new and existing contracts to take inflation into account, and how to mitigate its impact on projects. As with COVID‐19, all parties are advised to collaborate in finding solutions, as more time spent planning ahead and thinking strategically about procurement is likely to be the first step towards successful cost management.
For further information on prices and inflation and work FIS is doing to support members in this area, click here.
by Clair Mooney | 23 Jun, 2022 | CSCS
Reminder on accepting digital SICCS cards
CSCS is reminding industry of the need to be prepared for digital cards at site gates, which should always be accepted so long as they bear the CSCS logo. This follows reports that holders of SICCS cards have been turned away from site. Read more.
CIC launches new e-learning Health & Safety course
The Construction Industry Council (CIC) has today launched a new cutting edge e-learning Health & Safety Certification course which on passing, has been agreed by CSCS as an acceptable alternative to the CITB Health, Safety and Environment test. Read more.
Closure of Personal Fall Protection Installer Permanent Solutions courses
CSCS is to withdraw recognition of the Kee Safety and HCL Personal Fall Protection Installer Permanent Solution courses from Friday 30th June 2022. Read more.
by Clair Mooney | 21 Jun, 2022 | Building Safety Act
The Government has made an announcement regarding the transition to the UK marking ahead of the ending of recognition of CE marking on the 31 December 2022. You can find that announcement here.
The change will allow manufacturers with existing type tests from EU notified bodies under AVCP System 3, where the product was tested by the 31 December 2022, to affix the UK mark to their products, and to continue to supply them to the GB market without needing to be retested. You can find the latest government guidance here.
This is a welcomed move as it helps to keep products flowing while industry wrestles with many other significant challenges.
It is important to recognise, however, that there are still a number of significant questions that need to be worked through, such as the persistent shortfall in capacity of the UK certification and testing sector; ensuring that investment and innovation continue to be attracted in to the UK; and a range of more detailed and critical technical matters. Through the Construction Products Association, we will be pressing for further clarity on a number of pressing issues in particular:
- What is the position of products in the future placed on the market after the deadline, if UK testing and certification does not exist they will still be blocked from the market?
- How will the UK testing and certification capacity be encouraged to fill the gaps or will specialist product areas be allowed to use facilities outside the UK? This is also needed to ensure products being brought on to the UK market from outside the UK can be certified and tested without delay.
- In addition, there are still a significant number of standards to pass through the system, some critical to industry.
- Finally, the position in regard to EOTA data and formal confirmation of its use in the UK needs to be confirmed.
If you have any further questions, please feel free to contact us on 0121 707 0077 or email info@thefis.org
Visit the FIS Brexit Toolkit here
by Clair Mooney | 16 Jun, 2022 | Insurance
No easing of professional indemnity insurance restrictions, finds second CLC survey.
Limited availability of professional indemnity insurance (PII) and costly premiums are continuing to harm construction businesses and limiting the ability of firms to work on building safety remediation, according to the second annual survey from the Construction Leadership Council’s PII Group. The cross-industry survey revealed no real easing in the PII cover available to the profession since the group carried out its first survey a year ago. The 2022 survey, which received 652 responses, found that although high-rise residential work represents just 5% or less of workload for two thirds of firms, many are still suffering from increased premiums and excess levels, coupled with wide-ranging exclusions on cover. The CLC PII Group is particularly concerned that the situation is having a disproportionate effect on the ability of SMEs to take on work where cover for fire safety is required, to pay their premiums and to meet their claim excess in the event of a claim.
The results revealed:
• Nearly in one in five (17%) respondents are paying more than 5% of their turnover for their annual premium. One in twenty (5%) are paying more than 10% of their turnover for their premium, which is unsustainable for smaller businesses.
• Nearly a quarter (22%) of respondents are still unable to buy the cover they want or need (a slight improvement on 29% in 2021).
• Nearly seven out of ten respondents (68%) had restrictions on cover for fire safety (the same as 2021)
• A quarter (24%) have lost jobs as a result of inadequate PI insurance (compared with 31% in 2021).
• Three out of ten respondents (30%) have changed the nature of their work due to inadequate PII (compared with 29% in 2021).
• More than four in ten (42%) said that the experience of buying PII was significantly worse than their last renewal.
• A third (33%) of respondents have been declined insurance by three insurers or more, an improvement on 2021 (44%).
• Slightly more respondents have secured a claim excess that is 2% or less of their turnover (67% compared to 64% last year).
• Just over one in ten (12%) has an excess that is 21% of their turnover or more compared to 4% of respondents last year.
• There has been a slight improvement in the amount of cover available for “any one claim” rather than “in the aggregate” (64% compared to 60% last year).
Samantha Peat, managing director, Wren Managers and chair of the CLC PII Group, said:
“The market conditions for PII cover remain extremely tough for construction firms, particularly SMEs, and in the light of energy price rises and materials inflation, these are worrying times. The CLC PII Group will continue to work with Government and insurers to try and ease the situation.”
To download the full findings click here.
Members experiencing challenges secturing insurance or with questiosn about level of cover should contact FIS on 0121 707 0077 or email info@thefis.org and we can refer you to our specialist advisors.
by Clair Mooney | 16 Jun, 2022 | Skills
The Construction Skills Network has published it forecasts and analysis for 2022-26, which provides market intelligence and insights for the industry. The data highlights trends and shows how the industry will change year on year, allowing governments and businesses to understand the current climate and plan ahead for the future.
Some key facts from the UK report:
• An extra 266,000 workers will be required to meet projected UK construction demand by 2026 (53,200 workers per year)
• Construction employment would reach a high of nearly 2.78 million workers by 2026 if projected growth is met
• Growth is predicted across England, Scotland, Wales and Northern Ireland
• All major sectors are forecast to experience recruitment pinch points as demand soars with private housing, infrastructure and repair and maintenance most affected
George Swann FIS Skills and Training Lead explains:
This data helps us identify the recruitment challenges for the years ahead based on the predicted growth of the construction industry. However, the Construction Skills Network data does not directly align to all of the 37 occupations employed within the finishes and interiors sector, so we also consider the latest Construction Skills Certification Scheme (CSCS) card registration data and information collected from various FIS surveys, we emphasise the figures reported by FIS are our best estimates. The sectors occupations are approximately 10% of the recognised roles available in the Construction Industry and its been identified approximately 50% of the sectors workforce are not CSCS registered. FIS will continue to support employers to qualify their workforce, take a look at the FIS Skills Hub: https://www.thefis.org/skills-hub/ or give us a call on 0121 797 0077 or email info@thefis.org
by Clair Mooney | 16 Jun, 2022 | Skills
The deadline for employers registered with CITB to submit their completed 2022 Levy Return is Thursday 30 June 2022. Failure to submit it by this date will result in grant claims being withheld until it is received, and any employers who do not submit a completed Levy Return by 30 November 2022 will lose eligibility for all grant claims.
CITB Chief Executive Tim Balcon will be joining the next Build UK Trade Association Forum on Tuesday 5 July to present the CITB Business Plan 2022/23. Build UK will also be hosting a roundtable meeting for Trade Association members in‐scope to CITB on Tuesday 19 July, where CITB Engagement Director Deborah Madden will provide an update and take questions on grants and funding, including the new and increased grant rates from 1 April 2022.
by Clair Mooney | 16 Jun, 2022 | Main News Feed
In line with plans to ensure all new HGVs are zero emission by 2040 at the latest, the Government has published a call for evidence on a potential limited range of exemptions for vehicles weighing 26 tonnes or under. The deadline for submitting views on the proposals is Friday 22 July.
by Clair Mooney | 16 Jun, 2022 | Building Safety Act
The Levelling Up and Regeneration Bill is continuing its passage through Parliament and had its second reading in the House of Commons last week. The Bill will introduce major reforms to the planning system, including a new ‘Infrastructure Levy’ to be charged to landowners and developers on the value of property when it is sold above a minimum threshold, with the proceeds going to local authorities to fund local infrastructure. It will also introduce a new requirement to prepare ‘Environmental Outcome Reports’ for major projects, which will be assessed against tangible environmental outcomes set by Government and replace the current Environmental Impact Assessments.
The Bill, which will now be sent to a Public Bill Committee for scrutiny, is expected to become law in early 2023.
