APPENDIX 2
Supplementary memorandum submitted by
the Department of the Environment, Transport and the Regions (PAC
00-01/173)
Q62
The Construction Industry Board (CIB) estimate
that they represent about 90 per cent of construction companies
(other than companies exclusively involved in engineering construction,
for example of oil refineries). The 10 per cent not represented
by the CIB include those small companies or the self-employed
who elect not to become members of any trade association, or other
umbrella body. The companies represented employ around 90 per
cent of the total workforce, including professionals drawn from
all parts of the industry.
The CIB was established in 1995 in response
to the Latham report. It was the first single industry-wide representative
body that brought together contractors, specialists, professional
advisers and clients.
The CIB completed a review of their functions
in June 2000. The Chairman's Report confirmed the need for a strategic
pan-industry group to represent the industry. Negotiations are
continuing between the umbrella bodies on the proposed arrangements.[7]
The CIB's membership (flag 1) comprises the
four umbrella bodies of the "supply" side of the industry,
representing a collective membership of over 150 trade associations
and professional institutions:
— Construction Industry Council (consultants,
institutions, and research bodies);
— Construction Industry Employers'
Council (lead contractors);
— Constructors' Liaison Group (specialist
contractors);
— Construction Products Association
(producers and distributors of construction products).
Membership of the Confederation of Construction
Clients is proposed; and DETR as sponsoring department for the
construction industry, attends CIB meetings as an observer.
Q64
There has been growing awareness in the construction
industry over the last 18 months or so of the increasing difficulty
of recruiting and retaining the talent and skills it needs. The
workforce is ageing: in 10 years the proportion under 30 years
old has dropped from 33 per cent to 25 per cent. The Construction
Industry Training Board (CITB) estimates the industry will require
about 73,000 new recruits each year for the next five years. Applications
to relevant university courses are down over the last five years
by a third for architecture and a half for building/construction
and civil engineering.
A growing number of leading players in the industry
recognise that they must improve their performance on recruitment
and retention. They will do so only if they radically improve
their performance on what we call "Respect for People"—which
covers health, safety, diversity, site conditions and welfare
as well as training. Last November the "Rethinking Construction"
working group on respect for people issues published a report
entitled A Commitment to People: our biggest asset. The
toolkits and performance measures which they produced have been
widely welcomed. They will be trialled by demonstration projects
and organisations before being revised and published for use by
the wider industry early next year. We hope that they will encourage
the industry to improve their performance.
Some significant steps towards improving standards
of training were announced at the Construction "Safety Summit"
on 27 February. The Confederation of Construction Clients and
representatives of major contractors committed themselves to achieve
on projects for which they are client or contractor:
— 100 per cent registration of all
operatives by the end of 2002;
— A fully-qualified workforce by the
end of 2003.
These measures are endorsed by the Office of
Government Commerce. New OGC procurement guidance to be issued
to government departments and agencies will recommend that they
commit to similar targets on projects for which they are clients.
DETR
12 March 2001
7 The Construction Industry Board will be wound up
at the end of June, succeeded by the Strategic Forum for Construction
chaired by Sir John Egan. DETR press release 2 May/No 248 refers. Back
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