by Clair Mooney | 19 Aug, 2022 | Market data
There were signs that the extended period of growth experienced by the construction supply chain began to ease in the second quarter of 2022, with cost inflation dominating the headlines of industry surveys. Whilst net balances for construction product manufacturers’ sales and SME contractors’ workloads continued to show growth, they were the lowest since 2020 Q4 and were accompanied by product manufacturers anticipating a fall in sales over the next 12 months and SMEs reporting that enquiries slowed significantly from recent quarters, including falls for new house building and the industrial and commercial sectors
by Clair Mooney | 19 Aug, 2022 | Main News Feed
In the last few weeks FIS has seen an increase in requests from members related to contractual matters, some that are reaching a critical point.
The range of requests for support have included delayed payments, price fluctuations and misalignment in pricing of variation as well as concerns over design liability and transfer through contracts. As inflation and delays continue to erode margin, such issues are seem set to become more commonplace – whilst the industry talks about transformation, there is a danger we are becoming more contractual.
To support members in a challenging time, FIS is delighted to announce a new consultancy arrangement with Bunton Consulting Partnership. This partnership will enable FIS to extend support for members experiencing commercial and contractual issues, by referring them to a highly experienced Industry Consultant, Len Bunton FRICS FCIArb Hon FRIAS (further details below). Len will provide an initial free consultation of 1 hour to discuss and review the specific issues faced and to help develop a strategy to address. Should further advice and support be necessary, thereafter then Len will agree the necessary fee levels with each FIS member.
Commenting on the introduction of this new service, FIS CEO Iain McIlwee stated:
“This partnership further strengthens the support FIS provides to its members in managing contractual concerns. Sadly we still operate a contractual structure that often encourages adversarial behaviours – we even call ourselves contractors rather than constructors and the result is we spend as a sector 1.9% of turnover, almost double that of any other industry, on legal disputes. The cost to the bottom line is crazy, the cost to lives and wellbeing morally reprehensible. At FIS we are focussing on procurement as a key lever for change, but we are very conscious we are where we are and it has never been more important for members to review their contractual positions and make sure they understand and can quantify risks. We have seen an uptick in administrations in recent months and there is a fear that the industry is entering survival mode. This is when we are tempted to resort to the worst possible behaviours. We are grateful to Len for stepping up to provide additional help in these challenging times – his work on the Conflict Avoidance Pledge and advocating this approach makes him a perfect partner for FIS.”
As part of the new relationship Len Bunton made the following comment:
“I have dedicated my career to conflict avoidance and this for me starts before the contract is even signed – it is all about getting off on the right foot. You need to enter contracts with your eyes open to the risks and reinforce to everyone involved in the project that paperwork is everything and that any instruction must be documented and confirmed in writing at the time.
The clearer the information, the less ambiguity which means less scope for misunderstanding and reduced opportunity to debate and delay. It is also critical to make sure all are aware of contractual deadlines and any how any deviation from programme or variation in price needs to be reported. Doing all of this won’t guarantee the avoidance of all disputes, but they will see many off before they start and allow for speedier resolution and ensure that you are in the best possible position should you need to rely on third party intervention. I am looking forward to working with FIS Members to resolve existing issues, but also offer the advice and support that will help them avoid the next one too.”
With Len, FIS is actively encouraging members and the wider construction community to look at Conflict Avoidance Pledge (CAP), based on the simple concept – the cheapest way to manage any dispute is not to have it at all. The CAP is a contractual mechanism, which helps parties to avoid getting embroiled in pro-longed and damaging disputes. Where disagreements begin to develop, CAP enables parties to address and resolve matters early, collaboratively and inexpensively. The process recommends standard clauses that you can include in your contract.
Further information about Bunton Consulting Partnership is available below:
Len Bunton FRICS FCIArb Hon FRIAS – has over 40 years’ experience as a cost consultant and, adjudicator, arbitrator, mediator, expert witness and conflict avoidance consultant. He has extensive experience on major projects. Len is Vice Chair of the Conflict Avoidance Process Coalition and is absolutely committed to the Conflict Avoidance Process.
Bunton Consulting Partnership, 2 Ardoch Way, BRACO, Perthshire, FK15 9RH | Also at Princes Exchange, Princes Square, LEEDS, LS1 4HY | E: len@buntonconsulting.co.uk
This service compliments the existing FIS Legal and Helpline and Contractual Support and can be accessed by calling the FIS office on 0121 707 0077.
For the full range of supporting advice and information available to members you can visit the FIS Contractual Commercial and Legal Toolkit here.
by Iain McIlwee | 19 Aug, 2022 | Labour, Skills
Employing Ukranian and Afghan Workers
Minister for Refugees Lord Harrington has written to businesses confirming that Ukrainian and Afghan nationals have a right to work in the UK where they have resettled under the Ukraine Family Scheme, Homes for Ukraine Scheme, Afghan Relocations and Assistance Policy or Afghan Citizens Resettlement Scheme. Although the exact process will be determined by how the individual arrived in the UK, employers should conduct right to work checks in the usual manner and contact the Home Office Employer Checking Service (ECS) if further verification if required.
In his letter the Minister re-iterates that all employers in the UK have a responsibility to conduct simple right to work checks before employing someone. These checks are required regardless of nationality – even British citizens are caught by the measures.
Afghan nationals who have resettled in the UK under the Afghan Relocations and Assistance Policy or the Afghan Citizens Resettlement Scheme, and Ukraine nationals who have resettled in the UK under the Ukraine Family and Homes for Ukraine Schemes have a right to work. To evidence that right, employers should conduct right to work checks in the usual way.
For Ukraine nationals, the exact process required of the employer is shaped by how the individual arrived in the UK and the documentation held. But, broadly speaking, at the time of writing:
- Where an individual has a stamp in their passport which provides a time-limited right to work, the employer will need to manually check the passport as set out in published guidance, and perform a follow-up check to ensure the required documentation to evidence the right to work for a longer period (i.e. a Biometric Residence Permit) has been obtained;
- Where an individual has an eVisa (digital evidence of their immigration status, accessible online), the employer should use the online right to work checking service on GOV.UK in the same way as they would for others in possession of a biometric card; and
- Where an individual does not have a passport but instead has an Entry Clearance vignette attached to a ‘Form for Affixing the Visa’ (FAV), where necessary this document can be used as proof of right to work in conjunction with confirmation from the Home Office Employer Checking Service (ECS) in the form of a PositiveVerification Notice (PVN). However, in most cases, shortly after arrival a BiometricResidence Permit is available for collection, and this should be used to access the online checking service.
Where necessary, employers may contact the Home Office Employer Checking Service(ECS) verify right to work:
End of COVID-19 Temporary Changes
The temporary changes to right to work checks introduced in response to COVID‐19, which allow employers to undertake checks via video calls and use scanned copies rather than original documents, are due to end on 30 September 2022. After this date, employers are recommended to verify an individual’s right to work using a certified digital identity service provider (IDSP).
The relevant guidance on Right to Work Checks can be accessed here.
You can visit the FIS Employment Toolkit Here
by Clair Mooney | 18 Aug, 2022 | Skills
Approaching 700,000 of students collected exam results today (18 August). This included A and AS levels, level 3 vocational and technical qualifications as well as the new T’Levels – so far over 425,000 of these students have been confirmed places at University, but many others will be considering what next.
A collective effort to promoting careers in the finishes and interiors sector
Now is a vital time for employers to step up and get the message out there that the £10 billion Finishes and Interiors Sector, a sector that employs around 280,000 people is a dynamic part of construction and offers a range of opportunities. This is our opportunity to champion that we are a credible choice, that we create the interior spaces and carry out the finishing that turns a structure into a home, hospital, cinema, hotel or school, basically we put the wow into buildings. We need to make sure that those looking to step into the world of work know that there are opportunities to train for a trade in as an Interior Installer, Plasterer, Dryliner, Carpenter and Joiner, Ceiling Fixer etc. We also need Designers, Building Information Modellers, Surveyors, Contract Supervisors and Project Managers as well as all the other array of roles that support the construction process, from IT through to commercial.
A new opportunity through T-Levels
One group to highlight is that 1,029 students received their T-Level results with 207 of these being in “Design, Surveying and Planning for Construction”. This is the first batch of T-Level graduates who have completed the new 2-year courses. These qualifications are taken after GCSEs and are broadly equivalent to 3 A Levels, but offer a more sectoral and vocational focus. The qualification combines study with a substantial industry placement so that students gain the skills and valuable workplace experience they need to progress into a job, further study or an apprenticeship.
What should employers do
Every great career starts with a job! FIS is recommending all members use the TalentView Construction service to promote any opportunities and jobs available through your business. As well as providing a free job board that is being heavily promoted to school leavers, this service automatically links with the National Apprenticeship Service and ensures that young people have the best possible chance of seeing your vacancy through any career advice that they receive. Consider also making contact with your local college or sixth forms to ensure that they know of any vacancies that you have available that could be communicated to prospective candidates and also reach out to your local Department of Work and Pensions and ensure that all of the local support is being utilised.
So whether you are looking to hunt down a T-Level graduate or are keen to take on a recent school or college lever on as a trainee, apprentice or even offer to sponsor a candidate through their degree there are a range of tools that FIS and others have made available to support a collective effort that helps to present more consistently a dynamic sector full of opportunities.
For top tips and support in promoting careers in the sector visit the Recruitment and Induction section on our website that includes links to useful resources or contact the FIS via telephone 0121 707 0077 or email info@thefis.org.
Targeting school leavers in 2023 and beyond
Effectively targeting the 700,000 annual school leavers and inspiring young people to think about a career in construction is critical. To support you in this work the STEM Construction and Built Environment Ambassador programme provides vital training, tools and support, giving you confidence that the message is right and we are working (and learning) consistently as a sector. Becoming an ambassador will also plug you in to the STEM network and will open up opportunities to visit schools and careers fairs.
Ambassadors play an essential role in inspiring young people to think about a career in construction through a range of activities, these include school presentations, careers talks and mentoring. If you are interested in becoming a STEM Construction and Built Environment Ambassador, you can find out more by joining our webinar, register here . Remember you are not alone and we are here to help. At FIS we have members of our team who have completed the training and are actively working as ambassadors, we are maintaining a network of ambassadors and are using this network to better understand how to target our approach and to develop resources. More on construction ambassadors here
If you are interested in offering T-Level industrial placement in 2022/2023 please email info@thefis.org and we will make the necessary introductions.
by Clair Mooney | 18 Aug, 2022 | Skills
From 1 August 2022, the 20% off-the-job requirement for all apprenticeships will no longer apply. It will be replaced by a baseline of six hours per week, irrespective of hours worked by the apprentice. It means apprentices who work more than 30 hours per week can now spend less than 20% of their time doing off-the-job training. The Education and Skills Funding Agency (ESFA) has stated that this move, part of a package of changes to apprenticeships, ‘must not dilute the existing requirement, but provide the right level of training to every apprentice’. This shouldn’t be a problem for the training providers and employers. Employers have control over the training provided in the workplace.
It is an eminently sensible rule change and it should lead to a rise in apprenticeship numbers for these three reasons:
- Apprentices will be able to contribute more at a time when many businesses are still struggling to recover from the impact of the pandemic.
- It levels the playing field, meaning all apprentices will be required to engage in the same number of off the job hours, and are not penalised whether they work 30 hours a week, or 48 hours a week.
- It will be much more easily administered without the need for complex and varied calculations which have been an administrative burden for Training Providers
This now aligns to an academic training day of six hours rather than the working day of 7.5 hours, allowing Training Providers to standardise and create learning programmes for cohorts rather than individuals. It is advisable to create a working relationship with your Training Provider to ensure you know what subjects the apprentices will be covering when they are with the them. This does not remove the employers responsibility for training apprentices in the workplace and giving them time to practice the skills they learn in training in the workplace. If you need more information contact George on 07553 874838 or email georgeswann@thefis.org
by Clair Mooney | 18 Aug, 2022 | Skills
Apprenticeships experts warn that the Treasury must be more transparent on how it spends the billions returned to its coffers. The rigid apprenticeship system is blamed for billions of skills funding going unspent by businesses and being returned to the Treasury. More than £3.3 billion has returned to the Treasury in the last three years under the Government’s use-it-or-lose-it apprenticeship levy rules, according to new data collected by apprenticeships experts the London Progression Collaboration (LPC).
The LPC, which to date has helped transfer £10 million of unspent apprenticeship levy from large employers to support small businesses and create over 1,000 apprenticeships, says that it is not clear how the Treasury is making use of the £3.3 billion that it has received from businesses. The apprenticeship experts warn that this lack of transparency means it is unclear whether the Treasury is using the unspent levy in a way that best supports the places most in need of levelling up, and whether it is helping create more entry-level apprenticeships, after numbers have plummeted in recent years.
The LPC argues that if the apprenticeship levy is to meet its objective of increasing employer investment in training, the Treasury needs to give employers greater control over how their funds are directed, including by increasing the 25 per cent apprenticeship levy transfer cap. The LPC has seen at first hand the challenges the current system poses to businesses in their work helping firms navigate the complex apprenticeship system and transferring their unspent levy to small businesses.
These findings follow previous research by the LPC which shows that since 2014-15, ‘entry-level’ apprenticeships have fallen by 72 per cent in England, while apprenticeship starts amongst under-19s have fallen by 59 per cent, depriving those most at risk of in-work poverty and at the beginning of their careers the best start in life.
Commenting on this information, FIS CEO, Iain McIlwee stated:
“We need clarity here, Government increasingly expects employers to act as finishing schools, but is simply not providing adequate support for the investment that this entails. We need a serious rethink about how education is built around careers and preparing people for the world of work, not purely academic outcomes. The chasm between education and industry seems to be widening and the answer is not more stealth tax!”
Source IPPR
by Clair Mooney | 17 Aug, 2022 | Main News Feed
The awards are a joint event between the Worshipful Company of Plaisterers and FIS to recognise achievement and excellence in plastering and interior trades. The event will be held at Plaisterers’ Hall on 22 November and will celebrate the achievements of students and apprentices in our sector, as well as organisations and individuals that champion skills and training for the benefit of our industry. It will also provide networking occasion for like-minded individuals to come together. You can book your seats here.
If you haven’t yet entered the awards, there’s still time to nominate. The awards recognise:
- The achievement of apprentices
- Students who have exceeded beyond expectations
- The delivery of training by colleges and training providers
- Training delivery by an FIS member company
- Mentors and others who have supported sector training
- Lifetime contribution to sector training
If there is an indivdual or business you’d like to nominate, you can find out more details on how to enter here.
by Clair Mooney | 11 Aug, 2022 | Main News Feed
New guidance published by the government aims to provide businesses and workers – particularly in the gig economy – with greater clarity over employment status and the rights and employment protections people are entitled to at work, including pay, leave and working conditions.
Featuring real world examples of what an individual’s working day or contract may involve – and how that translates into their employment status – the guidance will help smaller businesses that have less capacity and legal expertise to understand the law and reduce the risk of companies being fined for unknowingly breaking the rules. At the same time, workers can see what rights they are entitled to at work and will be able to have informed discussions with their employer and take steps to claim or enforce rights where necessary.
by Clair Mooney | 11 Aug, 2022 | Skills
Construction workers are being charged excessive sums by unaffiliated third party websites for their Construction Skills Certification Scheme (CSCS) cards when they could pay just £36 via the official application service. CSCS continues to receive complaints from those who have used third party companies to apply for their CSCS cards. These companies are unaffiliated to CSCS and simply use the official CSCS application service on their client’s behalf, while charging an admin fee. Many of these complaints relate to inflated costs and slow delivery times for cards.
There is only one official service: cscs.uk.com/apply. A card costs £36 and in most cases, applications will be processed, and cards issued within 48 hours. Reports have been received of construction workers paying upwards of £60 just for their CSCS card. If you are charged more than £36 for a card or £22.50 for the separate CITB Health, safety and environment test you should ask why. The quickest and cheapest way to apply for your CSCS card is via the official online service. Online applications are quick, easy, and secure, for more information visit www.cscs.uk.com/apply. If you need help contact FIS on 0121 707 0077 or email info@thefis.org
