Build UK has published the latest payment results submitted by its members under the Duty to Report on Payment Practices and Performance, which continues to drive greater transparency across the construction sector and is leading to improved payment practices.

Contractor members showed particularly positive results, significantly reducing the time taken to pay invoices to an average of 36 days, down from 45 days just 18 months ago. Over a third have actually improved their performance by 15 days or more during this period. On average, Contractor members now pay 91% of their invoices within 60 days, up from 80%.

Build UK has been benchmarking its members’ payment performance since July 2018, in line with the target set out in the Government’s Construction Sector Deal. Build UK also continues to provide information on the payment performance of central Government departments, with 13 of the 16 departments paying over 95% of their invoices within 30 days.

Compiling data in this way has presented a coherent picture of payment practices within construction, which has been welcomed by Government for driving culture change and enabling informed decision-making.

This initiative, alongside the recent publication of guidance to support the Build UK recommendation on contract terms, is part of Build UK’s wider strategy to promote collaboration in the supply chain and tackle the wider issues associated with the high risk, low margin construction business model.

Build UK Deputy Chief Executive Jo Fautley said:

“We have seen consistent improvement from our members since Build UK began benchmarking their payment performance in 2018. Contractor members in particular have taken the opportunity to change the industry’s approach to late payment, recognising the importance of transparency to drive good practice. There is still work to be done but these latest results show that we are definitely heading in the right direction.”

Build UK has issued new guidance designed to help the construction industry implement the Build UK recommendation on contract terms published last year.

A New Normal in Contractual Practice provides a more detailed rationale for why the six contract terms identified in the recommendation are problematic and should be avoided.

It is widely recognised that current contractual practices can actively inhibit collaboration, create inefficiencies, and result in risk being passed down the supply chain. The Build UK recommendation, which was developed with the support of legal counsel to ensure compliance with competition law, seeks to form a new common ground between clients and the supply chain, with the focus on managing these risks rather than passing them on. It has been met with support from across the sector, including endorsement by the Construction Leadership Council, with Co-Chairman Andy Mitchell saying it is ‘a first step towards fairer and more responsible contractual practices’.

The newly-released guide will now help all parties to implement the recommendation. For each of the following terms in the recommendation, there is context explaining the relevant term, the reasons why it should be avoided, and recommendations on how to more effectively manage the underlying issues:

• Fitness for purpose
• Unquantifiable risks
• ‘Specified Perils’
• Breach of contract
• Uncapped liabilities
• Performance securities.

Former Build UK Chairman Mark Castle, who has championed the development of the recommendation, said:

“This new guidance is a huge step forward. By helping all of us to understand the dynamics underlying these six terms, the rationale for avoiding them, and how exactly we can solve the challenges in a more collaborative way, it can help to create a ‘new normal’ in contractual practice. Ultimately, by avoiding these terms, the industry can spend less time negotiating contracts, reduce the incidence of disputes, and become more sustainable in terms of productivity, innovation and profitability.”

The recommendation is non-binding and Build UK members are free to negotiate their own contractual terms with their clients.

From 6 April 2020, IR35 legislation is changing for medium and large organisations operating in the private sector.

The change is related to who is responsible for determining a worker’s status when they are employed through an intermediary and, if relevant, who has responsibility for operating payroll to account for any tax and National Insurance contributions to HMRC.

Build UK has prepared A Practical Guide to IR35 Changes, setting out comprehensive guidance for construction companies who use off-payroll workers, allowing them to determine if they are required to apply the new legalisation and providing clear steps to ensure they remain fully compliant.

Please do get in touch via membership@builduk.org if you have any questions on the upcoming changes.

Build UK is pleased to welcome Munnelly Support Services as its inaugural logistics contractor member.

Established in 1982, Munnelly Support Services is a market-leading UK construction and infrastructure support services group, leading UK public sector bodies to deliver prestigious, complex and challenging construction and infrastructure projects.

Munnelly Support Services boasts a wealth of knowledge and construction logistics experience, alongside a strong commitment to improving and strengthening the construction industry.

Paul David Munnelly, Director of Munnelly Group, said:

“We are passionate about transforming the industry and delighted to join Build UK at what is a very exciting time for construction. The construction industry is facing significant challenges, which we need to work together to overcome. We’ve worked with some of the world’s largest companies and lead UK public sector bodies to deliver prestigious and challenging construction and infrastructure projects across the UK, so this is a great opportunity to bring a fresh perspective and innovation to long-lasting issues that will benefit all in the sector.”

Build UK enters the new year having consolidated its position as the voice of UK construction by welcoming into membership a number of major client and contracting organisations, including Laing O’Rourke and Transport for London (TfL).

In total, we welcome five new members this month, with Munnelly Support Services becoming first logistics contractor to join, as well as Alandale Group and Sunvast International UK Limited.

This follows a successful 2019 in which the Government-sponsored Construction Leadership Council (CLC) endorsed a number of Build UK initiatives aimed at driving change in construction, breaking new ground in areas such as pre-qualification, contractual practice, and retentions.

For further details, please see our full statement.

The UK construction industry faces a growing challenge to attract, retain and progress the best talent. With record employment, uncertainties from Brexit and the changing workforce demographic as the population ages, construction firms are facing a looming skills shortage if they are not able to tap into existing talent pools or encourage the next generation into the sector.

There is an urgent need to create a more attractive career pathway for all, providing both men and women better work-life balance and progression. Improving flexible working would address a number of strategic priorities, ranging from diversity and inclusion to health and well-being to enhancing employers’ ability to attract and retain talent. However, despite the business benefits, employers are not keeping pace with the demand for flexible working.

Supported by Build UK, flexible working consultancy Timewise has partnered with four Construction Pioneers: Bam Construct, Bam Nuttall, Skanska and Willmott Dixon, on a one year programme to explore how to improve flexible working in the industry. This entails reviewing current practices and identifying the barriers the industry faces, including the established long hours culture and the fact that interdependency of tasks onsite makes changes to working patterns difficult.

A strong business case for change has been identified – including talent attraction, better mental health and improved wellbeing. All partners will be working with Timewise to use these insights to pilot new flexible working options on identified sites over the coming months.

Build UK is continuing its work with Construction Industry Publications (CIP) throughout 2020 to ensure the Construction Health & Safety (H&S) and Environmental manuals include industry recognised health, safety and environmental policies and standards. To this end CIP works with both Build UK Contractor and Trade Associations Members.

This integrated approach aims to improve the knowledge and practices of those on site without duplicating information or publishing conflicting advice.

Build UK partner Construction Industry Publications (CIP) is offering all Build UK members an exclusive 30% discount (excludes the six monthly updates) on its online combined Construction Health & Safety and Environmental Manual CIP Knowledge, and also on hardcopies and CDROMs.

The latest updates include:

Health and Safety Manual

• A new format Health and Safety Register of Legislation to bring it in line with the Environmental one.
• A completely revised and updated Drugs and Alcohol section which includes a new draft policy.
• A revised Temporary Works section following the release of BS5975 2019.
• An updated Piling section.
• Updated guidance on the use of Drones.

Environmental Manual

• A new section entitled Setting up Site has been introduced to identify a number of the issues that need to be considered in order to minimise the environmental impact of the site establishment phase of a project.
• In the Nuisance Section the guidance on the registration and GHG emission limits of Non-Road Mobile Machinery within London is updated together with advice on the recognition of engine type approvals. Guidance on the avoidance of vandalism on sites is included.
• The Waste Section has been updated to reflect the withdrawal of the existing and the publishing of a range of new Low Risk Waste Positions (LRWP) by the Environment Agency.

Morgan Sindall Construction and Infrastructure Ltd, said:

“For good practical up to date advice on health and safety matters, the Construction H&S Manual is a must for everyone involved in construction. Working with Build UK will ensure it is even more relevant on a day to day basis as the ‘go to’ source of information for all things health and safety. It will also keep the manual up to date with industry practices, and provide the more collaborative approach we all want.”

Details of subscription prices for CIP Knowledge, which start from £2458 per annum for a single user, can be found on the website. Build UK members can claim their 30% discount using the promotional code BUILDUK. Build UK members also have the opportunity to take out a free one month’s trial of the online version by registering on the CIP Knowledge website.

A number of Build UK members, had their say about the industry’s future skills at a series of CITB roadshows in the autumn.

A total of 21 events took place across England, Scotland and Wales, with the aim of hearing directly from employers about the immediate skills issues they face and their priorities for the future.

Leaders from across the industry spoke about their most pressing topics. A wide variety of issues were discussed, with Graham Cleland from Berkeley Modular discussing Modern Methods of Construction (MMC) in Maidstone, while in Durham Kier’s Alexandra Taylor shared insights on being a woman in the industry. Future skills and innovation was a common theme, with representatives of the Construction Wales Innovation Centre and its Scottish namesake appearing at a number of events.

Over 1,000 people attended the events, with employers of all sizes represented, and these discussions informing CITB’s strategic plan for the next three years to ensure that the industry Levy is being invested in ways that make the greatest difference.

Employers were asked before and after each event whether they felt positively or negatively about the steps CITB was taking to achieve its mission to attract and support the development of people to construct a better Britain. During the course of the presentation, positive sentiment increased from 83% to 92% when employers heard more about the work CITB was doing to support them.

Making construction a career destination and creating a site-ready workforce came out as the top factors employers believed would make the biggest difference to the construction industry, with 63% also wanting to see an increase in future skills funding.

Mark Noonan, Industry Relations Director at CITB, said: “These events are a vital tool to ensure that employers can tell us about the skills needs that they have and, perhaps more importantly, to share knowledge and best practice to drive the industry forward.

“We know that the industry faces significant challenges going forward, which means it is essential that the training market is delivering for employers.

“I was pleased to see Build UK members and other employers at the roadshows and hear their views. We are now putting together an exciting series of events for the spring which should be a must for employers who want to have their say and make the most of the training and funding opportunities available through CITB.”

The following presentations delivered at the roadshows are now available:

• Future Skills and Business Plan
• Training Model
• Apprenticeships

Build UK partner B&CE is calling on construction firms to strive to tackle dust in construction, and its associated lung diseases.

The proportion of people reporting breathing problems they blame on their job hasn’t gone down in the last 10 years, according to the latest statistics on occupational lung disease.

In its 2019 report, the Health and Safety Executive (HSE) found the rate of self-reported breathing or lung problems has remained similar over the last decade at an estimated 300 cases per 100,000.

Great strides have been made in safety in recent years, but health-at-work now needs to catch up.

The problem with dust:

Construction workers are often exposed to dust, fumes and other substances which can cause breathing problems and lung disease.

Each year, around 3,000* people working in construction suffer with breathing problems they believe were caused or made worse by their work.

We think that’s too many. Lung disease in construction is preventable and it shouldn’t come with the job.

What are the health risks?

Activities in construction can pose a risk to workers and their families if they breathe in dust from cement, plasterboard, asbestos, respirable crystalline silica and a host of other sources.

This can lead to conditions affecting lungs including mesothelioma, chronic obstructive pulmonary disease, asthma, silicosis and cancer.

Symptoms of lung disease include:

• shortness of breath
• a cough which may produce mucus or wheeziness
• frequent chest infections.

What do employers need to do?

The HSE provides detailed guidance but, in summary, to comply with the law and look after health-at-work employers need to:

• think how any work might involve substances that can cause harm
• carry out a risk assessment that measures or estimates the exposure to these substances and how the risk of harm can be reduced
• aim to prevent exposure to minimise the risk, for example by using different tools or work methods, extracting dust as it’s produced, damping down with water, and wearing face masks as a last line of protection
• provide lung health check-ups to monitor changes in health and spot symptoms early according to a set timetable and process.

Working towards a healthier construction industry

We believe everyone working in construction has the right to a healthy working life and future, and we’re working with industry and policymakers to raise awareness of the issues.

We’re working with the All-Party Parliamentary Group on Respiratory Health to investigate the devastating impact of silicosis.

And we’ve teamed up with the people who matter most – workers and their families who are affected by illness. People like inspirational health campaigner Mavis Nye. Mavis was diagnosed with mesothelioma half a century after she was exposed to asbestos dust on her husband Ray’s work clothes.

Pippa Dolman, Occupational Health Manager at B&CE, said: “Some lung diseases take a long time to develop so the rates of breathing and lung problems will remain the same for a while. However, we’d really like to start seeing a downward trend soon.

“I hope all employers and workers will take note of the experiences of people like Mavis Nye and make a stand against preventable lung disease and breathing problems caused by construction work.”

Find out more about lung disease in construction and watch Mavis Nye’s story.

Open Doors gives visitors a unique insight into working in construction, with the chance to explore construction sites, offices, factories and training centres across Great Britain. Bookings for Open Doors 2020 are live now, with visits taking place throughout Open Doors Week between Monday 16 – Saturday 21 March, 2020.

Anyone thinking about a career in construction can now book to visit a construction site as part of this year’s Open Doors. Please continue to support the opening of sites to help recruit the next generation!

Read the full press release and visit the Open Doors website for further information.

The Institute for Apprenticeships and Technical Education is looking to recruit Peer Reviewers to support the development and approval of T Level Qualifications.

The main focus of the work will be to review content and assessment materials and provide advice on whether the content is up to date, reflects current industry practice and meets the needs of the Construction sector. This will support the approval’s managers analysis and recommendations for the Institute’s Route Panels who have responsibility for final approval of the Technical Qualifications.

For further information, please contact Emma Yates.