by Clair Mooney | 31 Mar, 2021 | Insurance, Market data
Significant cost increases and the introduction of new restrictions on professional indemnity (PI) insurance are preventing companies taking on projects and could delay essential work on building safety. These were the findings of a pan-industry survey of over 1,000 firms carried out by the Construction Leadership Council and published today.
The results pointed to widespread incidence of companies having to change the type of work they do because of restrictions on cover, with a quarter losing jobs because of tough conditions and limitations being placed on them by insurance firms. Even though two thirds of respondents said that less than 5% of what they do is high rise residential, almost one in three were unable to buy the cover they wanted or needed.
The survey was carried out from mid-February to mid-March and received 1,066 responses from a mixture of consultants, contractors and specialists. They also ranged in size with half of the respondents from companies with turnover below £2 million and 10% over £50 million.
The results* revealed that:
• Over 60% of total survey respondents have some form of restriction on cover relating to cladding or fire safety
• One in three of total survey respondents have a total exclusion in place for cladding claims
• One in five of respondents have a total exclusion in place for fire claims
• Over a quarter of total survey respondents have lost jobs as a result of inadequate PI insurance
• One in three respondents couldn’t do remedial work if they wanted to
• Almost a quarter of total survey respondents have changed the nature of their work due to inadequate PI insurance.
• Majority of respondents buy £10m or less cover with very few buying over £20m
• Almost half of respondents had been declined insurance by three insurers or more
• Two thirds of respondents are carrying a claim excess imposed upon them by their insurers
• Premiums have increased nearly 4-fold at the last renewal, having doubled the year before; the average rate is 4% of turnover but one in five who gave figures are paying more than 5% of their turnover for their PI insurance
This issue has been building for a while now and is starting to loom as our next crisis. The fact that 44% of businesses across the sector have been refused cover is telling and whilst 29% claim not to have been able to get the cover they need, the concern from conversations we have and analysis of cover is that I doubt many have cover they would consider ideal. Premiums continue to escalate and policies are contracting, everybody is paying for cover, but it isn’t aligned and there seems to have been little engagement from the insurance sector to address specific concerns rather than generic perceptions. Insurance is a financial service, but it needs to be engrained in the industry itself, it isn’t a just service, it is part of the infrastructure of the sector – we need to take a much closer look, as a supply chain. We need to consider carefully the role of options like integrated project insurance and wrapping insurance round the entire supply chain, ensuring insurance isn’t just another contract that seeks to write out risk, but is a core part of how we responsibly manage this. We welcome this work from the CLC – FIS is exploring a number of options for our sector, building on our Product Process People framework and, if any companies or individuals are interested in getting involved in our focus group, let me know.
FIS CEO Iain McIlwee
The survey results are available here
*For consistency all results are given as percentages of total respondents (1066), but some questions were answered by fewer respondents.
by Clair Mooney | 31 Mar, 2021 | Main News Feed
From 6 April, companies with 10 or more employees who cannot work from home will be able to order home test kits for their employees where it is not possible to set up a testing site in the workplace.
The deadline to register for workplace testing has been extended until Monday 12 April 2021. Build UK has produced a useful guide summarising the process.
Access all the latest Covid-19 updates in our Covid Hub.
by Clair Mooney | 30 Mar, 2021 | Main News Feed
Major contractors now adopting the Common Assessment Standard
Build UK has announced that the new industry-wide pre-qualification (PQ) system is now fully up and running, simplifying a complex system for the benefit of everyone in the construction sector. The rollout of the Common Assessment Standard will significantly reduce the duplication of time, effort and resources that are costing the sector up to £1 billion a year.
Major contractors and clients – including Balfour Beatty, Costain, HS2, Mace, Multiplex and Skanska – have all adopted the Common Assessment Standard meaning that members of their supply chains will need to obtain just one certification to tender for work with them. This follows the recent implementation of a new data sharing solution, which enables contractors and clients to obtain key PQ data from any one of three Recognised Assessment Bodies: Achilles, CHAS or Constructionline.
The Common Assessment Standard is an industry-agreed question set with two levels of certification – desktop and site-based – and companies can apply to any Recognised Assessment Body to get the appropriate level dependent upon their trade, size and requirements of their clients.
Created by Build UK with the support of CECA, the Common Assessment Standard is endorsed by the Construction Leadership Council (CLC), which is actively seeking its adoption throughout Government construction procurement, including the Construction Playbook.
Jo Fautley, Deputy Chief Executive of Build UK, said: “We’re delighted that the new system is now fully up and running and already being used by major contractors and clients. It’s been a collaborative effort, involving companies across the whole sector, and the new system is a huge step towards more efficient working, which is more important than ever in the current challenging economic climate.”
Neil Mant, Chair of the Interim Cross Industry Body, which has overseen the development of the new system, said: “The new PQ system is a huge step forward for construction. With a single Common Assessment Standard and data sharing now in place, we have not only eliminated a huge amount of costly duplication of effort but also raised the bar in assessing the competence of the supply chain. Supply chain companies will need certification from only one of the three Recognised Assessment Bodies, and contractors can continue to deal with the body they have an existing relationship with.”
Andy Mitchell, Chair of the CLC, said: “The CLC is delighted to endorse the Common Assessment Standard which is set to transform the construction PQ process. It is a real and practical way of reducing bureaucracy and improving quality in the industry and it comes at just the right time. Companies will be able to demonstrate that they meet an agreed industry standard, and clients and contractors will be able to rely on the certification. The CLC will be encouraging the adoption of the Common Assessment Standard throughout public and private sector procurement.”
by Clair Mooney | 26 Mar, 2021 | Membership, Technical
To help specifiers understand the performance of wall mounted acoustic absorbers, FIS has published a new technical note, Specifying Acoustic Absorbers where they will be installed against a wall.
The sound quality of a room often doesn’t need a specialist to tell you that something is wrong. Whether it is an office, café or community space, it can sound like being in an unfurnished room and as people arrive it can become louder and louder for occupants. It is an issue that can be addressed by reducing reverberation caused by hard surfaces through the installation of acoustic absorbers on the walls.
The new guidance will help specifiers understand the acoustic and fire performance of wall mounted acoustic absorbers, acoustics and room acoustics, reverberation and absorption, conformity marking and importantly, their installation.
Iain McIlwee, Chief Executive of the FIS said: “The new technical note is aimed at anyone wanting to address noisy spaces by installing acoustic absorbers on the walls to reduce reverberation.”
This brief guidance provides information on how products are tested, what the results mean, what fire performance needs to be considered and what to look for in terms of how they should be installled so that they perform correctly.
“The positioning and installation of the absorbers can all have a big impact on the effect the absorbers will have, so it is important for specifiers to have all the informationduring the crucial specification stage ,” added Iain McIlwee.
The technical note is available to download at https://www.thefis.org/knowledge-hub/technical/fis-technical-notes-industry-alerts/
by Clair Mooney | 26 Mar, 2021 | Main News Feed
The Government has confirmed that anyone who gets a positive result from a lateral flow device (LFD) test undertaken at home should get a PCR test to confirm the result. However, in the event of a positive result from an LFD test undertaken at a test site, a follow up PCR test is not required and the individual and anyone they live with must self‐isolate from 10 days from the date of the test.
Build UK has published a guide to the Government’s workplace testing programme, which provides an overview of the LFD testing process and the steps required to set up a test site. Members interested in offering workplace testing must register via the Government’s online portal by next Wednesday 31 March and tests will then be provided free of charge until the end of June.
by Clair Mooney | 26 Mar, 2021 | Main News Feed
The Written Ministerial Statement by Housing Secretary Robert Jenrick permitting extended site working hours has been extended until 30 September 2021. The statement makes it clear that local planning authorities in England should not refuse requests to extend working hours on construction sites up to 9pm, Monday to Saturday, without very compelling reasons. In some cases, such as in areas without residential properties, 24‐hour working may be justified.
Requests should be made to the local planning authority which should aim to issue a decision within 10 working days, and the Government has published FAQs with further information.
by Clair Mooney | 26 Mar, 2021 | Skills
A couple of weeks ago FIS sent the email message below to all members, to date CITB have received 19 replies. Without the weight of employers behind it these changes will be shelved until legislation makes it happen. As employer we prefer you to have control.
Following discussions with FIS Working Groups a request to change qualifications was submitted to the Standard Setting Body (SSB) for Construction. In order to meet regulatory requirements, the SSB must show they have consulted on these proposed changes as widely as possible across all four home nations. All of the changes proposed by FIS Working Groups are in a bid to keep people safe and are:
- Change the National Occupational Standards, Recommended Qualification Structure for Interior Systems level 2 by the addition of COSVR355 v3 Erect fire resisting walls and wall linings. This will provide a fire protection qualification outcome for dryliners.
- Add a new National Occupational Standard for service, maintain and repair of operable partition wall systems, as an option. It has been reported there have been accidents and near misses during these operations, the inclusion of this standard will provide a qualification route for individuals employed in this area. For a copy of the proposed draft standard please contact George Swann on 07553 874838 or email georgeswann@thefis.org
- In response to the Grenfell inquiry and the work on competence, insert under ‘methods of work’ as a requirement of knowledge ‘how fire spreads through a building, how to impede it and protect people and the structure’ to COSVR125, 126, 127, 129, 130, 133, 618, 620, 769, 770 all contained I the Recommended Qualification Structure Interior Systems level 2. By doing this the statement will cascade into all qualification outcomes (academic, trained and competence) derived from these standards thereby giving operatives the required knowledge.
If you agree with these changes, please copy and paste the following message and email it to Standards.qualifications@citb.co.uk with the subject header of Interior Systems NOS Changes:
Hello
This message is to show support for the changes requested via FIS Working Groups.
[Insert your normal signature block]
If you disagree with these changes, please explain the reason for your disagreement by email using the address above.
If you have any concerns or need additional information or to discuss the above, please don’t hesitate to contact George Swann on 07553 874838 or email georgeswann@thefis.org Many thanks in anticipation.
by Clair Mooney | 25 Mar, 2021 | Skills
FIS Associate Member DMR Training has secured government National Vocational Qualification (NVQ) funding for the insulation sector in Greater Manchester, Lancashire and Sheffield City regions.
Based in Greater Manchester DMR is a construction training provider and has access to full funding to cover assessment in NVQ Level 2 in Insulation and Building Treatments. A number of pathways exist within this qualification including internal, external wall, cavity wall and loft insulation, all of which qualify for CSCS Skilled Worker ‘blue and ‘gold’ card applications. Funding makes these qualifications free of charge to FIS members.
DMR specialises in onsite NVQ assessment and has been helping construction industry workers gain vocational qualifications and CSCS cards since 2013. DMR Managing Director Dave Radley said, “When I set the company up eight years ago, it coincided with the start of the original Green Deal. We started to deliver qualifications within this area immediately as we felt that it was an important shift in the way the industry works and the effects on the economy. However, it never really took off as expected and demand simply wasn’t there, and government stopped supporting the scheme in 2015. I am delighted that the government is now supporting a green recovery and the retrofit of energy efficiency measures. The ten point plan for a green industrial revolution shows just how serious government are about making it happen this time.”
Dave went on to say, “We want to play our part in building back better, supporting green jobs and contributing to the goal of net zero. We’re looking forward to working with FIS members and helping them gain the qualifications they need for their business to be involved.”
This funding is no longer available but visit www.dmr-training.co.uk for more information
For more information on this and other funded training offers visit www.thefis.org/membership-hub/memberbenefits/member-benefits-training/training-offers-for-members/nvq-training-offers/
by Clair Mooney | 25 Mar, 2021 | Skills
Following the reopening of schools and colleges, the Department for Education (DfE) has confirmed that on‐site training can resume for students of all ages in the following further education (FE) settings if a provider follows the operational guidance:
- Sixth form colleges
- General FE colleges
- Independent Training Providers (ITPs) ‐ defined as organisations that receive Education and Skills Funding Agency (ESFA) formula funding for the provision of 16 to 19 education
- Designated institutions
- Adult and Community Learning Providers (ACLPs)
- Special post‐16 institutions.
All FE providers should continue to follow pre‐COVID‐19 guidance for adult students and “judge the right balance between on‐site and remote delivery in order to provide high quality education and training”. Apprenticeship providers should also read the current apprenticeships guidance, which confirms that FE apprentices may now return to training and assessment in educational settings, in addition to the training and assessment that is currently permitted in the workplace where the apprentice cannot work from home and the workplace is COVID‐19 secure.
There has not been any further guidance issued about resuming face‐to‐face training in the workplace, and companies will need to determine if any training required can be undertaken remotely or is essential at this time, as they may be required to explain how they are complying with current restrictions.
Visit the FIS Skills Hub here to find out about our network of Approved Training Providers
