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!
by Oscar Venus | 11 Jul, 2024 | Technical
In 2022 the European Commission proposed regulation to repeal the previous EU Construction Products Regulation (EU-CPR 2011) as part of a package of proposals aimed at making sustainable construction products the norm in the EU, empowering the green and digital transitions, and improving product safety. The newly revised EU-CPR was agreed by the European Parliament in April 2024.
This CPA briefing paper examines the differences between the old and new EU-CPR, particularly with the impact on manufacturers in mind.
In 2022 the European Commission proposed regulation to repeal the previous EU Construction Products Regulation (EU-CPR 2011) as part of a package of proposals aimed at making sustainable construction products the norm in the EU, empowering the green and digital transitions, and improving product safety. The newly revised EU-CPR was agreed by the European Parliament in April 2024.
This CPA briefing paper examines the differences between the old and new EU-CPR, particularly with the impact on manufacturers in mind.
by Oscar Venus | 10 Jul, 2024 | Main News Feed
The Finishes and Interiors Sector (FIS) has published a revised and updated Specifiers’ Guide to Drylining. This essential resource will help specifiers and designers with the specification of drylining, and to take account of new working practices, the Building Safety Act and sustainability.
First published in 2022, this revised guide is an invaluable aid to specifiers, designers, installers, and clients. This publication will guide them through some of the key criteria that should be considered when writing a specification for drylining, including partitions, wall linings, and shaft walls. In helping to select a drylining system that will satisfy performance needs, it also includes descriptions of other non-plasterboard, such as calcium silicate board, which is also used in drylined systems. The guide includes top tips when specifying drylining, as well as reference material on regulations for safety, fire performance and standards.
Split into sections, the revised guide covers everything from writing a specification to performance and material characteristics through to installation and inspection. It offers a series of points to consider when carrying out the specification of all types of drywall, and provides updated and revised information including:
- Addition of Building Safety Act duty holder requirements
- Updated information on individual, organisational and functional competence management
- Update to sustainability advice
- Addition of Code for Construction Product Information (CCPI)
- New guidance on information management requirements
- Addition of referenced standards including BS EN 14195 (metal framing components)
- Changes to BS 8000-8: 2023
- Removal of BS 8212
The guide sits alongside other FIS Best Practice Guides that relate to drylining:
Commenting on the drylining guides, James Parlour, Vetting and Technical Manager at FIS said: “A well-written specification not only ensures the installation meets the client’s requirements, but it also means the specifier’s requirements are less open to interpretation. Our new and updated guides allow professionals to reduce risks, support compliance, and most importantly of all encourage responsible planning.”
A valuable resource for improving works package delivery, these guides work well when they are included in proposals and project plans to demonstrate how to best approach a project.
You can download the Specifiers’ Guide to Drylining here
For further information or for any questions and comments please contact the FIS at info@thefis.org or call 0121-707-0077
www.thefis.org
by Oscar Venus | 10 Jul, 2024 | Main News Feed
Build UK has released an updated version of the Common Assessment Standard on Monday, 1st July. This new Version 4 has been refined after the removal of PAS 91 and now includes a fresh Building Safety segment. The update ensures that the Common Assessment Standard can showcase a company’s organisational ability to meet its obligations under the Building Safety Act. The completion of the Building Safety section is now considered ‘advisory’ rather than mandatory for the remainder of the year, allowing the industry to adjust to the new regulations.
There is a growing number of organisations from both the public and private sectors that are embracing the Common Assessment Standard. As outlined in Procurement Policy Note 03/24 released earlier this year, central Government departments and wider public sector entities are now mandated to use the Common Assessment Standard for pre-qualifying suppliers for construction projects. Version 4 is now available through the provided link as of 1st July. Suppliers seeking certification for the Common Assessment Standard after this date must respond to the updated set of questions.
If you are looking for Policy Templates or advice and guidance on meeting the requirements of the common assessment standard, check out our Risk Quality Management Toolkit here, call the FIS Team on 0121 707 0077 or email info@thefis.org
by Iain McIlwee | 5 Jul, 2024 | Main News Feed, Transformation
FIS today congratulated the new UK Prime Minister Sir Kier Starmer and his colleagues on their election success as Labour forms the new Government.
FIS CEO Iain McIlwee noted that “A new Dawn for the UK, means it is essential to deliver a new Dawn for Construction. The UK Construction Industry is at the beating heart of the country, enabling all other parts of the society and the economy to function and succeed. The construction sector is worth 9% of GDP to the and employs over 2.5 million people. But it is more than that, it provides our homes and infrastructure, it shapes our cities, preserves our heritage, provides our shelter and shapes our lives – great buildings are at the heart of a great nation.”
Two key areas of important focus for the new Government in their hundred day plan are:
Firstly Government as a procurer has perennially missed the opportunity to harness the potential of construction to support socio-economic development. Best value procurement is delivered by following principles of the Construction Playbook, but the Playbook is routinely ignored. Investment in the Value Toolkit took this a stage further, but this has never been realised. Section 106 and equivalent procurement interventions needs an urgent rethink to align to the Playbook and ensure value outcomes are measured on a National Level – more devolution is coming, but it should enhance not replace a national strategy.
The reality of building more homes (more anything) is we need more people. We have spent a generation building an industry around immigration, so this reform is going to take time and the infrastructure is not there (in our sector we need to double the best we did since 1974 to maintain the workforce we need).
Government needs to stop quoting International Benchmarks about arbitrary educational levels and “future skills” and look at what we need now. The landscape for L2 and L3 Apprenticeships has been decimated. The average apprentice is now over 25 and studying for a higher or advanced level apprenticeship. Only one in five apprenticeships is in a shortage occupation.
We need 1 in 10 people to choose to work in construction and we need them more work ready than they are now. The role of the education system is to get people work ready and it then becomes the responsibility of the employer to turn work ready to competent and develop them. Our reality is that kids leave school (and often college) nowhere near work ready and conditioned to think of construction as a last resort, not recognising we are the bedrock of all social and economic evolution. The dialogue in schools about our industry needs to change, it is a well paid and essential sector. This was evidenced in the chaos of Covid when Government failed to deem construction essential workers, but still needed the “essential work” done.
In the meantime, we need an approach to migration and the Shortage Occupation list to be an agile stop gap solution.
We also caution Labour to consider carefully their plan to be tough on contingent workers. Government needs to be mindful of a quote that jumps out for me from the Reading Report:
“To invest in a directly employed workforce would render many firms uncompetitive given the limited focus on genuine and enduring collaborative relationships that procurement practices allow. The consequential reliance on contingent forms of labour is an issue of commercial reality rather than preference but has a detrimental impact on the training culture.”
Finally the Building Safety Act is a force for good, but there are some big gaps. A key to tightening is to ensure that a Design Responsibility Matrix in included in the list of regulated documents for the Building Safety Act, ensuring that this vital mechanism to make system based decisions based on the right advice at the right time is in place.
Read FIS Manifesto for the new Government: A Blueprint for a better Construction here
by Clair Mooney | 28 Jun, 2024 | Main News Feed
The Construction Leadership Council has today published a letter of advice for the next Government, detailing a series of policies that would help the construction industry create economic growth, build much-needed new housing and deliver the UK’s infrastructure pipeline.
The letter, signed by 16 members of the Construction Leadership Council, has been sent to the leadership of both the Conservative and Labour parties, and is intended to offer non-partisan guidance on closing the industry’s productivity gap and maximising its contribution to the UK economy. Specific measures include a presumption in favour of development on small sites, to support smaller housebuilders and improve housing supply, committing to publish an updated five-year National Infrastructure and Construction Pipeline shortly after any budget or fiscal event, and setting out a 10-year policy and regulatory roadmap for the retrofit sector.
The CLC argues that the policies would each help to unlock productivity in the construction industry, encouraging investment in new capabilities, skills and technology; closing the gap between the sector and the wider economy – in turn helping to create £45bn of additional added value annually for the UK; the equivalent to 2% of GDP.
The policies are grouped under five ‘Ps’ – pipeline, procurement, places to live, performance and people – and represent the collective priorities of the CLC members across all parts of the construction industry, from SME housebuilders and materials suppliers to the largest contractors and clients, as well as the CLC’s 2023 report into construction productivity.
The CLC is a non-political body and works in partnership between industry and Government. As such, the letter is addressed to any future government, and has been written to be agnostic to the outcome of the 2024 General Election.
Mark Reynolds, Co-Chair of the CLC and Chairman and Chief Executive of Mace, said:
“Whatever the result of the election in July, the fact remains that the construction industry offers any incoming government the biggest opportunity to create sustainable economic growth and unlock the potential of peoples, places and projects all over the country.
“The CLC is asking politicians of all parties to take this opportunity seriously, review our recommendations and ensure that businesses all over the UK are given the certainty and confidence they need to invest in a brighter future for the sector.”
by Oscar Venus | 28 Jun, 2024 | Main News Feed
Statement from John Newcomb, CEO of the Builders Merchants Federation and Peter Caplehorn, CEO of the Construction Products Association, co-chairs of the Construction Leadership Council’s Material Supply Chain Group
The latest report from the Construction Leadership Council’s Material Supply Chain Group (formerly Product Availability Group) continues to show good levels of product availability across the board.
There are, however, isolated reports of minor availability issues for certain profiles of concrete roof tiles, aircrete blocks, doors and some timber products, but these are limited to particular regions or manufacturers and evidence suggests they are likely to be temporary.
Prices are relatively stable with the level of any increase mostly low and manageable. The main exceptions, as mentioned last month, are PIR insulation which has experienced a more significant price increase, and timber, where prices for some products continue to fluctuate.
Regarding shipping, the Group continue to monitor the impact of hostilities in the Middle East on supply lines between Asia and the UK via the Red Sea, but any impact on costs and delivery times are said to be modest and manageable.
Inclement weather and stubbornly high interest and mortgage rates in the first half of the year slowed activity and demand, but there are now signs that RMI work is picking up and Group members expressed cautious optimism going into the second half of the year, and particularly when looking ahead to 2025. Many are looking to the new government to help drive the recovery by acting quickly to support UK construction with measures to promote housebuilding, infrastructure, energy efficiency retrofit and planning reform. Such clarity, together with anticipated rate cuts from the Bank of England would help to stimulate key sectors of the industry.
In anticipation of an uptick in demand, manufacturers have highlighted the need for accurate forward forecasts to ensure capacity is set at the correct level to match demand.
The CLC’s continuing advice to everyone involved, particularly housebuilders and SME contractors, is to plan in advance, work closely with your supply chain and communicate your requirements early with suppliers, distributors and builders’ merchants. As we learned during the pandemic, collaborative, ongoing communication throughout the whole supply chain is mutually beneficial and essential to a healthy, productive UK construction industry.
by Oscar Venus | 28 Jun, 2024 | Main News Feed
As the number of organisations adopting the Common Assessment Standard rises, supply chain members now only need to acquire certification once from any Recognised Assessment Body. There are two certification levels available – desktop and site-based. Companies should select the appropriate level based on their industry, size, and client requirements. Once certified, companies can share their essential PQ data with other Recognised Assessment Bodies to enhance their visibility among a wider range of Contractors and Clients.
For supply chain companies seeking to streamline pre-qualification processes, it is advisable to review their existing certifications to ensure they possess the Common Assessment Standard from a single Recognised Assessment Body if necessary. Contractors or Clients not yet incorporating the Common Assessment Standard in their supply chain can reach out to Build UK for more information on how to proceed.
