Government response
1. We welcome the close interest of the Business
and Enterprise Committee in the construction industry and are
grateful for the time and effort it has spent in carrying out
this comprehensive and well-written review. We are grateful too
for the time and effort individuals and organisations within the
industry have spent in providing the Committee with such a rich
source of information.
2. This response demonstrates the real steps
in hand to address the issues relating to fragmentation of construction
policy and procurement across government. We hope that the Committee
will accept that there has been progress, but equally, that we
accept that there is the potential to achieve much more.
3. That is why in October 2008 we announced our
intention to consult on a potential new champion for the construction
industry, in line with the Committee's recommendation that the
position of a Chief Construction Officer should be created in
Government. We will continue to engage with industry and public
sector bodies on this proposal. Full details of the potential
terms and scope of the role will be confirmed following engagement
with both industry and public sector bodies as part of the Operational
Efficiency Programme announced by the Chief Secretary to the Treasury
in July 2008. We will keep the Committee informed of developments.
4. The Committee's Report is particularly opportune
given that these are very difficult times in the global economy.
The twin global shocks of the credit crunch and the surge in energy
and food prices have hit every country in the world, including
the UK. Families are feeling the effects of the credit crunch
on their mortgages and have in addition, been hit by a big hike
in world oil and food prices this summer.
5. The Government is determined to help families
and businesses get through the tough times ahead—keeping
the banking system safe for savers, supporting small businesses,
jobs and helping families stay in their homes.
6. In terms of public finance, it is important
for government to take action to support the economy, so the Government
is protecting public spending during the downturn even though
tax revenues are falling.
7. The Government is also working to tackle the
causes of the problem in the banking system and in global financial
markets. Government is working with our European partners and
other global leaders to get banks lending again and to reform
the international financial system.
8. We agree with the Committee's assessment of
the vital contribution the construction industry makes to the
UK—both directly through its contribution to GVA (Gross
Value Added) and employment, and because it underpins economic
activity generally while contributing significantly to the delivery
of the Government's social and environmental objectives.
9. We agree with the Committee's analysis of
the UK construction industry and of the challenge of dealing with
this highly fragmented industry which works in an inherently project-based
way. These challenges are amplified as construction can be a complex
product with a significant impact and a long service life. The
customer base is equally fragmented. In the public sector for
instance, the Government has increasingly sought a devolutionary
role with local government, allowing more room for local decision
making and innovation. As the Committee has noted, the public
sector is not very different from the private sector—in
both sectors there are a relatively small number of large, repeat
and experienced clients. Most clients buy construction infrequently
or on a one-off basis and are not well placed to fully understand
the industry and its processes. The Committee is right to point
out that the key distinction is not between public and private
clients but between experience and inexperience.
10. We welcome the Committee's support for the
reform agenda on which we are working closely with the industry
and for its recognition of the progress the industry has made.
The Government has a part to play but the industry must continue
to accept its responsibility for achieving targets and aspirations—for
instance by sharing good practice and innovation and also challenging
poor client performance. We agree that there is potential to achieve
significantly more. In terms of demonstrating that potential,
we are grateful for the Committee's endorsement of what the Olympic
Delivery Authority (ODA) has achieved so far in terms of implementing
good practice through construction procurement. The Olympic project
offers the UK construction industry an unparalleled showcase.
11. We note the Committee's approval that the
industry's new improvement targets reflect the need to promote
economic, environmental and social sustainability. We also welcome
the support for the joint industry and Government Strategy
for Sustainable Construction.
12. Our response is presented under 6 key themes
which broadly reflect those in Construction matters and
in the industry's Construction Commitments. These are client leadership,
procurement and integration, people (for instance health and safety
and skills and training), sustainability, regulation and innovation.
CLIENT LEADERSHIP
The role of the client
Increasingly, framework agreements are being used
to develop longer-term relationships between customers and their
suppliers. They can improve project delivery in terms of time,
cost and quality. However, many public sector clients are not
yet managing their frameworks rigorously enough to achieve all
their potential benefits. One of the functions of the Chief Construction
Officer, in conjunction with the Department for Communities and
Local Government and others, should be to ensure wider use and
more effective management of frameworks, where they are appropriate,
both at central and local government level. (Paragraph 42)
13. We welcome the Committee's recognition of
the important role that frameworks can play in the efficient procurement
of construction. Frameworks are widely used within government.
After being successfully introduced in South East England, the
approach is now being rolled out within local government by the
Regional Improvement and Efficiency Partnerships (RIEPs). Similar
arrangements are now being introduced elsewhere in the UK.
14. We note the Committee's comments about the
effective management of framework projects. Together with CLG
(Department for Communities and Local Government), BERR supported
the production of a report by the Local Government Task Force
called "Taking Advantage—how SMEs can become successful
framework contractors". This report captures developing best
practice on framework contracts.
The Construction Clients' Charter
The features of a 'good' client are the same whether
they are frequent or occasional customers to the industry. They
include setting clear and consistent objectives, appreciating
the importance of value rather than cost alone, and active involvement
throughout the project to manage risk. Following its extremely
poor take-up, we welcome the industry's intention to revise the
Construction Clients' Charter to reflect the new Construction
Commitments. This should provide a comprehensive outline of what
being a 'good' client entails. Once in place, we believe the Government
should lead take-up of the new Clients' Commitments and contribute
to the Strategic Forum's new target for client leadership by requiring
all major public sector procurers of construction works in central
Government to become signatories within the next two years. We
expect local authorities to make a similar commitment, and look
to the Local Government Association to encourage this, recognising
the benefits this would bring to those authorities and their council
taxpayers. (Paragraph 49)
15. We note the Committee's support for the new
Client Commitments. We are grateful for the work of the Construction
Clients' Group, which BERR has actively supported, both in developing
them and in developing simple "how to" guidance on how
to implement them. We look forward to the publication of this
soon.
16. Implementation of the Client Commitments
is one of the key targets of the Strategic Forum for Construction
going forward to 2012. It is also one of the deliverables within
the joint industry-government Strategy for Sustainable Construction.
To demonstrate the public sector's commitment all members of the
Public Sector Construction Clients' Forum have signed the Construction
Commitments. Having established this base, we will explore with
the Construction Clients' Group and others how best to take forward
this initiative with local authorities.
Helping occasional clients
Occasional clients in the public sector who lack
sufficient procurement and construction management skills should
be able to draw on skills from elsewhere. The centralised expertise
provided by Partnership for Schools shows this can be done. The
Chief Construction Officer, in conjunction with the Office of
Government Commerce, should establish where such skills gaps exist
across the public sector. Where deficiencies are found, a process
should be put in place to address the issue, involving the sector
skills council, ConstructionSkills, where appropriate. (Paragraph
54)
17. A Public Sector Construction Clients' Forum
(PSCCF) Working Group has carried out a study of client capability
and capacity. PSCCF now needs to agree the process for addressing
recommendations made.
18. The larger spending departments are subject
to Procurement Capability Reviews (PCRs). These reviews are carried
out by an independent panel of experts who examine departmental
procurement capability. The results of these PCRs are published
at:
http://www.ogc.gov.uk/ogc_-_transforming_government_procurement_procurement_capability_reviews.asp
19. PCRs are strategic, covering the widest range
of procurement from commodities through to complex PFI projects.
PCRs consider departments' procurement activities across the whole
lifecycle, covering policy, strategy, delivery, and disposal.
Programme and Project Management (PPM) capability is therefore
included within PCRs. While PCR reviews do not routinely examine
construction related procurement, they do examine this area of
activity from time to time—depending on the nature of each
department's procurement profile. To date there are several published
examples of PCR reports where construction activities are mentioned.
The Office of Government Commerce's Gateway
Process
The Office of Government Commerce's Gateway Process
offers a means for public sector clients to assess and monitor
their procurement performance for construction projects and programmes.
We are disappointed by the low take-up of the Process. All public
sector construction commissioners should be aware of it. The effectiveness
of the scheme should be evaluated urgently, and action taken if
the review teams lack necessary expertise. Furthermore, and while
the responsibility for initiating reviews must rest with responsible
senior officers who will be able to assess when projects are ready,
we hope the practicability of giving the OGC power to enforce
its use will be explored. (Paragraph 59)
20. The Gateway review process is mandatory for
all projects and programmes within central civil government. The
OGC regularly reinforces this message with departments and their
Permanent Secretaries. Centres of Excellence within departments
are responsible for managing the portfolio of projects and for
ensuring that Gateway reviews take place at the right time. OGC
liaises with the Centres of Excellence.
Helping the industry plan for additional capacity
If the construction industry is to have an incentive
to improve its capacity to deliver in the long run by investing
in training and new ways of working, it requires the security
of a long-term flow of work. The public sector is beginning to
acknowledge the role it can play in engaging early with the construction
supply chain. It is setting longer-term investment programmes
for public services, introducing a new approach to planning, and
has clearly committed to 'zero-carbon' homes by 2016. However,
it could still do more to improve the flow of information to the
construction industry, particularly when programmes are delayed,
amended, or abandoned. We believe that there is scope for greater
co-ordination of major construction projects to mitigate the effects
on construction price inflation and to ensure a steady workflow
for the industry, although the industry must recognise that its
health is only one of the factors the public sector has to take
into account. Like any other client, different parts of the public
sector will expect to arrange their construction projects to meet
their own needs. (Paragraph 107)
21. Government is continuing with one of the
largest investment programmes in recent times. The OGC, through
its work with the PSCCF, gathers data on public sector future
demand for construction as part of its econometric modelling.
A summary version of this information is openly shared with industry.
This should help suppliers to identify potential areas of opportunity
and be in an informed position when planning strategically their
own organisation's investment in capacity and capability.
22. Specific responsibility for departmental
investment programmes remains with the departments themselves.
It is inevitable that priorities are likely to be reassessed or
change over time.
23. Departments are required to take account
of full Exchequer costs when they carry out economic appraisals
of potential investments. The OGC has made its econometric model
available to government clients to assist them in their appraisal
process. On major programmes of activity the Major Projects Review
Group expects to see evidence of such evaluation before programmes
proceed.
One of the responsibilities of the Chief Construction
Officer should be leading the Public Sector Construction Clients'
Forum's work on capacity planning. The postholder should work
with departments both to improve the flow of information on construction
programmes, and to advise on their co-ordination. As the industry's
largest single client, the public sector ultimately benefits from
such early engagement. (Paragraph 108)
24. This will be considered as part of our discussions
on the wider potential roles and responsibilities of the proposed
Chief Construction Officer.
Retentions
The practice of holding a retention against contractors
as an insurance against defects undermines efforts to promote
team-working and integrated supply chains in the construction
industry. It also damages the cash-flow of smaller sub-contractors
and reduces investment in training and innovation. Government
has other means by which it can ensure the sector delivers good
quality projects, for example where it has long-term framework
arrangements in place. Given that the practice is at odds with
the Government's promotion of integrated working through the Common
Minimum Standards and the Construction Commitments, we urge it
to require all parts of the public sector to end retentions as
soon as possible. (Paragraph 143)
25. We are fully aware of the Committee's view
of the use of retentions on public sector projects. The Committee
is aware of the Government's position following the then Trade
and Industry Committee's inquiry into the general practice in
2002 and again in 2003
specifically regarding the role of the public sector as a client
of construction. The Government continues to believe that the
improvement of procurement processes and practices is fundamental
to the achievement of a better quality product and considers that
the implementation of better practices will allow a commensurate
reduction in the use of retentions. Both outcomes are important
and will be pursued. The Construction Commitments, which have
been signed by all members of the PSCCF, stipulate that there
should be no unfair withholding of retentions. Further, the OGC's
Fair Payment Charter and guide to fair payment practices require
that any client arrangements for retention should be replicated
through the supply chain.
PROCUREMENT AND INTEGRATION
In the wake of the launch of the new industry-wide
Construction Commitments, we recommend the Government reinvigorates
the Achieving Excellence initiative by establishing
new targets for public sector construction project performance.
The OGC should also put in place performance measurement systems
that collect data against all of these targets—not just
some. (Paragraph 67)
26. Achieving Excellence (AE) is valued by clients
as a useful tool in helping them to improve their performance
in the procurement of construction. It is widely recognised within
the industry. The OGC is planning to refresh AE within the next
year to take account of developments in government and industry
and to ensure that it continues to assist clients to strive for
procurement excellence.
27. The OGC and the PSCCF have agreed to explore
the concept of greater sharing of departmental management information
in order to identify further potential opportunities for government
as a whole.
The Common Minimum Standards
The Office of Government Commerce has set Common
Minimum Standards for construction procurement, based on the Achieving
Excellence in Construction guidance, which are mandatory
across the public sector. Yet anecdotal evidence suggests their
implementation, particularly at local authority level, has been
patchy, due in large part to a lack of awareness. We believe the
Government should now update the Standards to reflect the principles
set out in the new Construction Commitments. The OGC should also
work to promote greater awareness of the Standards; to measure
their use across the public sector; and to enforce compliance
by central government departments and their agencies. Local authorities,
with the support of the Local Government Association, should also
comply with the Standards in the interests of the communities
they serve. (Paragraph 71)
28. The Common Minimum Standards (CMS) summarise
government policy for construction procurement. The CMS will be
updated and all relevant policy initiatives will be considered
as part of that process.
29. The Local Government Task Force recommended
that the CMS be applied to all construction procurement activity.
The OGC, together with BERR, Constructing Excellence, the HSE
(Health and Safety Executive), the ODA and the RDAs (Regional
Development Agencies), ran a series of regional roadshow events
to raise awareness and understanding of the CMS.
The Public Sector Construction Clients' Forum
We welcome the establishment of the Public Sector
Construction Clients' Forum and its work to support the co-ordination
of construction activity and initiatives across government. We
urge all involved in its work to regard it as a permanent feature
of the public sector's engagement with the construction sector.
(Paragraph 72)
30. We welcome the Committee's recognition of
the important step taken by the OGC in establishing the Public
Sector Construction Clients' Forum. It is certainly intended that
the Forum should continue and build on its successes to date.
Transforming government procurement
We welcome the Transforming government procurement
initiative and in particular the OGC's new focus on
implementing best practice across the public sector. We are, however,
seriously concerned that the Office has been provided with neither
the resources nor the powers it needs to achieve this task. We
recommend that the OGC's staffing levels are reviewed. We also
recommend that the Government reviews the means by which the Office
can better perform the role of 'enforcer' of good practice across
the public sector. Several potential institutional levers exist
already for it to achieve this, but more may be needed. It should
involve taking advantage of its position as an office of HM Treasury.
It should also include greater engagement at permanent secretary
or ministerial level with other government departments. (Paragraph
78)
31. Resources will be an integral consideration
in the proposed appointment of a Chief Construction Officer. The
OGC's role includes, where necessary, challenging procuring organisations
in what they do. That challenge may, on occasions, involve escalation
of issues to departments' senior management so that they are in
a position to take any enforcement action necessary.
Raising performance through integrated teams
and supply chains
The fragmentation of the construction industry
has contributed to its poor performance on delivery to time and
cost. Integrated working not only improves value for the client,
but also allows time for firms in the supply chain to develop
business relationships with each other, creating an environment
that encourages investment in capacity and innovation. Despite
the potential benefits for all involved, progress in adopting
integrated working has been slow. We welcome the new targets for
the period 2008 to 2012. We are encouraged that the industry bodies
have recognised their responsibility. The Government should also
play its part through, for example, effective framework arrangements;
engagement with the industry on its long-term construction programmes;
and departments' compliance with the Common Minimum Standards.
(Paragraph 118)
Early engagement with the supply chain
Government is not doing enough as client to engage
with the supply chain early on—a key feature of integrated
working. As a result, the public sector is missing out on efficiencies
that would deliver a cheaper and better quality end-product. (Paragraph
120)
Improving economic sustainability
Overall, integrated team working can provide the
way out of the vicious cycle of adversarial relationships and
poor performance that have characterised the construction industry
for so long. Paragraphs 23 to 32, above, have outlined a number
of ways in which this can be facilitated. However, it requires
a culture change by all the sector's participants—clients,
contractors and sub-contractors. As the single largest construction
client, government should be taking the lead in tackling that
challenge. (Paragraph 162)
Response to the above three recommendations
32. The Committee draws a number of specific
conclusions and makes a number of recommendations about integrated
working and the role of government.
33. Promoting more integrated working practices
is the cornerstone of the industry's improvement agenda and we
are grateful for the Committee's support for the Strategic Forum's
new targets in this challenging area. We are also grateful for
the emerging work of the Strategic Forum's Integration Task Group
which is seeking specifically to articulate better the business
case for more integrated working. As that group and the Committee
have acknowledged, there are potential benefits for all involved—it
is important that we do not lose sight of that.
34. In partnership with the industry, Government
is seeking to play its part in promoting more integrated working
practices in its construction supply chains (see also paragraphs
15 and 16). As we have previously mentioned, members of the PSCCF
have signed the Construction Commitments—a key component
of which is procurement and integration—and we will be seeking
to build on this to ensure that the high-level commitment works
through into practice on the ground.
35. Early engagement with the supply chain is
a key feature of integration and we are keen that modern procurement
practices, such as framework agreements, play their full role
in delivering more integrated working practices. Collaborative
procurement is one of the five initial themes under the Operational
Efficiency Programme.
36. The Strategic Forum for Construction is a
member of the PSCCF and is engaged in the discussion about long-term
construction programmes. In addition, the move towards longer-term
framework contracts and larger procurement programmes (such as
Building Schools for the Future) has introduced greater transparency
into spending plans.
37. Compliance with the Common Minimum Standards
is clearly an important issue both for Government as it seeks
to ensure value for money and for the industry as it seeks to
secure culture change and promote more modern and efficient ways
of carrying out its business. The Common Minimum Standards align
with the Construction Commitments and we will do further work
to ensure that alignment is even closer. In this regard we are
greatly helped by the members of PSCCF who are already working
to deliver the principles in the Commitments on the ground.
38. However, we would not want to unduly raise
expectations. Integration is not a tap Government, or any single
sector of the industry, can simply turn on. Widespread adoption
of integration across the industry involves significant culture
change and will take time. We accept that there is still some
distance to go but we believe that Government is taking important
steps to promote integration more widely. We intend to continue
to build on that.
Collaborative contracts
Integrated team-working needs to be underpinned
by contracts that foster collaborative rather than adversarial
relationships between clients, their contractors and their sub-contractors.
Unfortunately the industry does not seem able to do this for itself.
As a result clients must take the lead. There are useful standard
contract forms such as the NEC3 Engineering and Construction Contract,
recommended by the Office of Government Commerce for all public
sector construction projects. Despite this, a large proportion
of government construction is still let using a variety of traditional
contractual arrangements. Led by the OGC, departments should work
towards the use of collaborative contracts as a matter of course,
and ensure they are adopted throughout their supply chains. (Paragraph
132)
39. The use of collaborative forms of contract
is a key element of the Achieving Excellence in Construction initiative
and the OGC recommends the use of NEC3. A number of the larger
central government construction procurers have already moved to
NEC3 and a number of others are now considering doing so. The
OGC has just completed a further review of standard forms of construction
contract for compliance with the principles of Achieving Excellence.
Further advice will be issued in due course.
Project insurance
Integrated Project Insurance provides single cover
for the entire project team, and could foster integrated working
by encouraging the collective ownership of a project's target
budget. It is an emerging concept, but one that could deliver
benefits for all members of the project team. We encourage the
OGC to set a target for the approach to be piloted across a range
of departmental construction projects so it can be properly evaluated.
(Paragraph 136)
40. Both the OGC and BERR assisted with the development
of the Project Insurance product. The OGC is now working with
a number of public sector clients to identify projects to pilot
the use of project insurance.
The 'Fair Payment' Charter
We welcome the introduction of the 'Fair Payment'
Charter. The OGC should ensure all central government construction
clients have affirmed their adoption of the Charter by the end
of 2009. The Office should then aim for all local authorities
to have signed up to it by the end of 2010. The OGC's monitoring
of implementation should ensure that clients are adopting the
principles of the Charter throughout the construction supply chain,
and not simply between themselves and their main contractors.
Where construction firms believe their client is not abiding by
the principles of the Charter, we urge them to make representations
to the Minister and to the OGC. (Paragraph 146)
41. BERR and the OGC have encouraged suppliers
to government to draw their attention to any instances where government's
practice falls short of the 'Fair Payment' Charter.
Project Bank Accounts
Both the Office of Government Commerce and the
National Audit Office have endorsed the use of project bank accounts
as a means of improving payment practices and facilitating integrated
working. Central government procurers should now start to make
use of project bank accounts, where practicable and cost-effective.
The OGC should monitor take-up and evaluate the benefits. (Paragraph
149)
42. Government has supported the development
and use of project bank accounts in the construction industry.
Their use is increasing and it is anticipated that key government
clients will make further announcements on their introduction
in the near future.
43. The OGC has already committed to, and established,
arrangements to measure the implementation of fair payment best
practice through to 2010. Similarly, the OGC will work with departments
to evaluate benefits flowing from the adoption of fair payment
principles.
Constructionline
The Government must reduce the burden that multiple
public sector prequalification schemes impose on construction
firms, particularly SMEs. Constructionline was set up to address
this, but it has proved unsatisfactory for the industry. The Government
should either make it work, or abandon it. If the consensus is
that Constructionline cannot work as intended, then the Office
of Government Commerce should consider how it might develop core
criteria and mutual recognition between schemes. (Paragraph 276)
44. The main aim of Constructionline is to reduce
burdens on contractors and tendering organisations. It does this
by providing proof of prequalification for all the core questions
relating to financial stability, certification, insurances etc.
It does not attempt to supply tender-specific information. Most
other prequalification services focus on 'added value' functions
in addition to prequalification, such as searches for work opportunities,
or tailored prequalification for specific organisations.
45. Constructionline is expanding steadily. There
have been increases in the number of users in the last year to
date of 1,500 suppliers and 1,800 buyers. The past year has also
seen a 40% increase in usage of the system by buyers, who made
over 160,000 enquiries of the database.
46. The new Constructionline contract, let this
autumn, should see the numbers of buyers and suppliers double
over the four-year term, encouraged by incentives in the contract
which allow the contractor to reduce overhead expenses as membership
and usage by buyers grows.
47. BERR is working with the OGC to make sure
that there is better alignment of core criteria (the common questions
everyone should ask). The 'Successful Delivery Toolkit' prequalification
section links directly to Constructionline with a recommendation
that purchasers should consider using the service. We will continue
to work with Constructionline, the OGC, the HSE, the Equality
and Human Rights Commission and others to ensure proper alignment
across the board, to provide an effective standard. (As part of
the Government's work to simplify industry prequalification schemes,
the HSE is working with the Safety Schemes in Procurement (SSIP)
towards achieving mutual recognition of Stage 1 of the CDM 2007
core criteria.)
COMMITMENT TO PEOPLE
'Bogus' self-employment
The widespread practice of wrongfully classifying
directly employed workers as self-employed, otherwise known as
'bogus' self-employment, creates significant costs for construction
workers, clients, the wider industry, and the Exchequer. To tackle
the problem, HM Revenue and Customs' Construction Industry (tax)
Scheme (CIS) now places a greater onus on contractors to verify
the employment status of their subcontractors. The success of
this new approach will depend on the collective 'buy-in' of contractors.
Government must also ensure HMRC has the power and resources to
monitor and enforce compliance. (Paragraph 177)
48. We accept that the level of "bogus self-employment"
is a problem, resulting in a significant loss to the Exchequer
in addition to other negative consequences. Enforcement is important
and in recent years HMRC has both increased and restructured the
resources it deploys on this. These are commensurate with the
risk presented by the construction sector compared to other sectors.
HMRC is also working with other government departments and external
stakeholders to explore ways to encourage greater voluntary compliance
and more effectively to detect and take action against non-compliance.
Changes introduced to the new CIS with effect from April 2007
will also help HMRC to better tackle the problem of false self-employment.
We welcome the setting up of the Vulnerable Worker
Enforcement Forum and look forward to its recommendations. We
hope it will give particular attention to whether the Gangmasters
Licensing Regulations should be extended to cover construction
workers. More generally, the public sector as client has a major
role to play in providing long-term security of work for construction
firms, which departments should actively take advantage of. Among
the benefits this would bring is a real encouragement for contractors
to take on more direct employees. (Paragraph 178)
49. The Vulnerable Worker Enforcement Forum published
its final report containing the Government's conclusions on 5
August 2008. There was discussion in the Forum, although no agreement,
on whether the Gangmaster Licensing Authority's licensing regime
should be extended to other sectors, including construction. Employment
agencies providing labour to the construction sector (and all
other sectors not covered by the GLA), are regulated by the Employment
Agency Standards Inspectorate (EAS). Government does not currently
intend to change these arrangements. We will prioritise effective
enforcement of the existing law by taking steps to strengthen
the EAS and ensure that it develops a significantly higher profile
amongst agency workers and agencies themselves—building
on the stronger investigative and penalty powers being legislated
for through the current Employment Bill.
ConstructionSkills and the Levy
The structure of the construction industry and
the nature of its work create disincentives for many employers
to invest in training and skills. The CITB-ConstructionSkills
Levy provides an effective means of tackling this problem, which
has the support of the majority of those who pay it. The Levy
provides a vital means of funding for training, which contributes
to the long-term skills needs of the sector. We support its continued
use. (Paragraph 185)
50. DIUS, as the Construction Industry Training
Board (CITB) sponsor department, will continue to support levy
proposals where these enjoy the support of the majority of employers.
Training routes into construction
Given that migrant labour is unlikely to provide
a stable long-term solution to the skills needs of the construction
industry, it is vital to attract more domestic recruits to the
sector. The initial take-up for the now abandoned Construction
GCSE suggests there is an appetite within schools to engage with
the industry early on. We support the development of the new Construction
and Built Environment Diploma and hope that it will provide a
credible qualification and entry route for those considering a
career in construction, as well as meeting the skills needs of
employers. Given the importance of developing skills in this vital
sector of the economy, its effectiveness must be rigorously and
regularly reviewed. (Paragraph 189)
51. The Diploma in Construction and the Built
Environment, which has been available to 14-19 year olds in England
since September 2008, should have a positive effect on boosting
the numbers of young people choosing a career in construction.
Employers from the sector have been closely involved in every
stage of the design and development of the new qualification,
and the development process is led by five Sector Skills Councils.
The Diploma will provide learners with the knowledge and skills
that employers seek from their new recruits.
52. We agree that it is vital to monitor and
evaluate the impact and effectiveness of the new qualification.
All Diplomas will be subject to a rigorous three-year evaluation
period, with an annual evaluation report being produced. Two reports,
on the development and on the implementation of the Diploma programme,
will be published in January 2009.
It is a disgrace that only a quarter of construction
companies are training apprentices. We support ConstructionSkills'
efforts to provide more flexible routes to on-site experience
for trainees and their sponsors, such as through programme-led
apprenticeships. Employers must now do their part by taking on
more apprentices, tapping into the large number of people who
want to work in the sector. The Government should also review
its support for adult learners and specialist trades to provide
greater flexibility of training provision to meet the needs of
the construction industry. (Paragraph 194)
Adult Skills
53. Through Train to Gain, the Government offers
a flexible service helping employers and their employees improve
skills, unlock talent and drive up business performance. Since
it was fully rolled out in the autumn of 2006, over 100,000 employers
have engaged with Train to Gain, with over 260,000 learners achieving
a qualification. Funding for Train to Gain will increase from
£520 million in 2007-08 to over £1 billion by 2010-11.
54. In June DIUS announced a new 'Train to Gain
Sector Compact' with employers to deliver more skilled construction
workers to do the jobs of the future. £133 million has been
earmarked to help current and future skills shortages. In conjunction
with ConstructionSkills, Train to Gain offers training solutions
helping employers improve the qualifications and skills of their
workforce, and offering a greater number of apprenticeships. The
number of construction employers already engaging in Train to
Gain from April 2006 to June 2008 is 16,000. This is expected
to grow as a result of the Sector Compact.
Apprenticeships
55. World Class Apprenticeships: Unlocking
Talent, Building Skills for All was published in January.
It sets out a wide range of steps which will improve apprenticeships
for the future and ensure that an apprenticeship place is available
for all qualified young people by 2013.
56. Funding for all apprenticeships will increase
from £900 million in 2007-08 to over £1 billion
in 2010-11. Funding will be available specifically for expanding
apprenticeships for those aged 25 and over. This reflects both
the high employer and learner demand for apprenticeships for this
group and the value that an apprenticeship can bring to a range
of adults making a labour market transition for various reasons.
57. The Committee may be interested in the specific
actions being taken to safeguard the future of apprenticeships:
o A
joint task force will be established between DIUS and CITB-ConstructionSkills
to review the wider issues facing construction sector apprenticeships.
The task force will bring together employers; trades unions; education
and training providers and others from the industry and Government.
Its overall purpose will be to review the approach to apprenticeships
within the construction sector, and how it might be expanded and improved;
and to make recommendations to Government.
o Working
with CITB-ConstructionSkills and the Learning and Skills Council,
DIUS will set up a 'clearing house' for apprentices. The Secretary
of State for Innovation, Universities and Skills wants this to
find new employer places for those who have started their training
but who are at risk of being laid-off from their current employer.
It would also sustain the range of places offered to new apprentices,
and ensure training programmes can be continued with colleges/training
providers. DIUS will work with Sir Michael Latham, Chairman of
CITB-ConstructionSkills, to identify a small group who can take
this work forward.
o DIUS
is working with CLG to convene a Joint Ministerial Summit with
key representatives from the industry, to examine the longer-term
implications for skills arising from the targets contained in
the 2007 Housing Green Paper.
o The
public sector is increasingly using the significant leverage available
to it through public procurement to promote apprenticeships in
the construction sector. For instance, in DIUS's college building
programme, successful contractors are required to have in place
a formal training plan for their project workforce that maximises
access to apprenticeships, work-based learning and other training
opportunities. We want to build on this example of what can be
done. The Secretaries of State for Innovation, Universities and
Skills, and for Children, Schools and Families recently wrote
to Cabinet colleagues to encourage them to promote apprenticeships
through their departments' procurement processes.
o Government
is working to ensure that major developments such as the Olympic
and Paralympic Games include opportunities for apprenticeships.
Already the Olympic Delivery Authority (ODA) has committed to
get at least 2,000 people in apprenticeships and work placements
(up to 2012) at the Olympic Park and other venues that the ODA
is working on or building.
The revised Apprenticeships Blueprint, announced
in the World-class Apprenticeships Report, includes further flexibilities,
for example, making it easier for employers to have their own
training accredited and streamlining the process of approving
Apprenticeships Framework.
Training the existing workforce
There has been considerable progress in raising
the skill levels of the existing construction workforce. We welcome
the establishment of the National Skills Academy for Construction
and support its project-based approach to delivering training.
We also commend the high level of take-up of the Construction
Skills Certification Scheme (CSCS) and hope the industry will
be able to achieve 100% coverage by 2010. However, clients must
play their part in reaching this target. Public sector clients
in particular should adhere to the Common Minimum Standards, and
contractually oblige their supply teams to ensure their workforces
are CSCS-carded. Contractors not committed to the Scheme should
not be invited to tender for work. (Paragraph 198)
58. The Common Minimum Standards require all
workers on site to be registered on the CSCS or be able to prove
competence in some other way.
Workforce diversity
The vast majority of the construction workforce
is white and male. This means there is a potentially huge pool
of untapped talent which could relieve capacity constraints in
the sector, and make the composition of its workforce more representative
of wider society. Government as client to the sector is in a powerful
position to effect change by ensuring contractors provide employment
opportunities to atypical recruits. We welcome the explicit inclusion
of promoting a diverse workforce in the industry's new Construction
Commitments. We recommend that the Government strengthens this
by making equal opportunities part of the Common Minimum Standards
for public sector construction procurement. (Paragraph 204)
59. We will consider these proposals when updating
the CMS next year.
60. The CMS summarises government policy but
does not restate what is required by legislation.
Health and Safety
More generally, government as client has a vital
role to play in improving performance. The Common Minimum Standards
already state that clients should ensure all contractors are assessed
for health and safety when tendering for work, and all workers
should be registered on the Construction Skills Certification
Scheme. But this is not happening. The new Construction, Design
and Management (CDM) Regulations 2007 place a much greater emphasis
on the client's role in ensuring health and safety, whilst the
Corporate Manslaughter and Corporate Homicide Act 2007 provides
the punishment in the event of a fatality due to organisational
failings. The Government should use both of these to enforce a
change of approach in public sector construction procurement,
and to drive culture change across the sector.
61. The HSE continues to use the CDM 2007 Regulations
to drive improvements in performance by all parties, including
public sector construction clients.
62. As above, we will consider these proposals
when updating the CMS next year.
We welcome the Strategic Forum's commitment to
ambitious targets for reducing the number of workplace fatalities
and major injuries over the coming years. After a period of steady
decline in construction fatalities since the turn of the century,
the number of deaths has increased significantly since 2005/06.
Housing repair and maintenance has had the worst record, primarily
because so much of the sector operates in the informal economy.
To tackle this the Health and Safety Executive must devote more
resources to inspection, whilst HM Treasury should look at ways
of reducing the size of the informal economy, for example by conducting
a full analysis of the overall consequences of cutting the rate
of VAT on all repair and maintenance work. (Paragraph 218)
63. The number of fatal injuries is too high
and we attach great importance to continuing action to reduce
them.
64. Since the publication of the Committee's
Report, the HSE has published provisional figures for 2007/8.
These show a small reduction in the numbers killed in the previous
year from 79 to 72 and a corresponding drop in the rate per 100,000
workers from 3.9 to 3.4. This reduction is in line with the long-term
downward trend since the high experienced in 1989/90 when 154
workers were killed. 72 people killed is still too many and we
are also concerned that there has been a levelling off over the
last 5 years or so of the downward trend in the number and rate
of worker fatalities.
65. Prompted by these concerns, the Secretary
of State for Work and Pensions has asked the HSE to commission
an independent review of the underlying causes of construction
fatal injuries, with the aim of re-establishing the downward trend.
A formal announcement on the detail of the review is expected
shortly.
66. The HSE routinely reviews its approach to
the improvement of safety and health practice in the industry,
and the study's findings will be taken into account. In the meantime,
it will continue with the current approach. This includes inspection
of construction sites as a key element in a balanced programme
of influential interventions (some of which are carried out by
staff who are not front-line inspectors). The HSE believes that
the combination of inspection, enforcement, awareness-raising
and influencing is the best way to stimulate those with the main
responsibility for managing health and safety performance.
67. The HSE is committed to maintaining the Construction
Division's frontline inspection capacity over the period covered
by the current financial settlement—i.e. until the end of
2010/11. This is in line with the Government's wider commitment
to maintaining frontline capacity. In 2008/09 the HSE plans to
maintain an average of 145 operational construction inspectors.
The numbers currently working in the Construction Division
are slightly below these levels and the HSE is taking action to
resolve the issue. 22 Health and Safety Awareness Officers (HSAOs) also
assist front-line operational inspectors.
68. We acknowledge the construction industry's
increasing acceptance of responsibility for controlling the risks
it creates and welcome the wide range of initiatives co-ordinated
through its representative organisations.
69. We firmly believe that legitimate trade should
not be undermined by businesses that evade taxes. HMRC deploy
specialist teams whose prime function it is to tackle businesses
that fraudulently avoid paying VAT and other taxes.
SUSTAINABILITY
Maximising whole-life value
A whole-life value approach to construction procurement
seeks to maximise the benefits and minimise the costs of a project
across its life-cycle. It requires an integrated project team
able to develop a design that creates best value for the client.
However, it also requires clients to have the skills and long-term
perspective to make investment decisions which are not based on
short-term price. Government has made progress in encouraging
a whole-life approach in the public sector, but in the words of
the Minister: "There is a good deal more to do". We
welcome the emphasis placed on whole-life value in BERR's Strategy
for Sustainable Construction. We also welcome the publication
of the OGC's supplement to the Green Book on whole-life
appraisal in construction, which the Office should now seek to
embed in procurement practice across government. It should support
this by ensuring clients have the information to accurately quantify
whole-life costs and benefits. Finally, the Government should
make it mandatory for all public sector projects with a value
in excess of £1 million to use a structured mechanism for
assessing their design, such as the Design Quality Indicator.
(Paragraph 127)
70. A whole-life value approach to investment
decisions is a requirement of the HM Treasury Green Book.
That suite of guidance continues to grow in order to help clients
carry out what can be quite complex investment appraisals. The
OGC and Defence Estates have worked with the British Standards
Institute and the Royal Institute of Chartered Surveyors to develop
industry-wide guidance on standardised approaches to carrying
out life-cycle assessments.
71. The successful implementation of these measures
into everyday practice is challenging for the whole industry but
tackling this in a joined-up manner will assist organisations
to develop the skills needed.
72. Government already supports the appropriate
use of tools such as the Design Quality Indicator (DQI) where
these assist clients in the successful delivery of their construction
projects. With government's current substantial school building
programme the Department for Children, Schools and Families is
now the largest user of the DQI tool by some margin. The Department
of Health's pioneering DQI—the Achieving Excellence Design
Evaluation Toolkit (AEDET)—was first published in November
2001 and is the health sector specific standard for design evaluation.
Similarly, the Department's complimentary National Environmental
Assessment Tool (NEAT) was issued in 2002 and has now been replaced
by the Building Research Establishment's Environmental Assessment
Method (BREEAM) for Healthcare. It provides an accredited assessment
against standards.
73. The Construction Commitments support the
appropriate use of design tools and the Strategic Forum for Construction
has set itself a target of achieving a 10% year-on-year increase
in the number of projects using the DQI tool.
Measuring Performance
Integrated working should give teams an incentive
to evaluate their performance and apply lessons learnt to future
projects. Greater use of post-occupancy evaluation (POE) has the
potential to benefit construction teams, their clients, and future
clients through increased use of evidence-based design. We welcome
the OGC's decision to mandate POE for central government departments,
building on its initial pilot project, although we note that the
work is mainly focused on office buildings. Once established,
the scheme should be extended to cover all parts of the public
sector as soon as possible to collect information on a range of
different types of building. We hope the OGC and the industry
will be able to use the information gathered to inform the construction
of future public sector buildings. (Paragraph 161)
74. OGC has mandated the benchmarking of the
performance of government's office buildings. Over time, that
data should help to inform good design. More immediately it provides
user departments with comparable data on the performance of their
buildings to help them identify opportunities for improvement.
The Energy Performance of Buildings Directive provides a similar
incentive to those responsible for the management of public buildings.
Environmental sustainability: the construction
process
Reducing the environmental impact of the construction
process is a key part of Government and industry's Strategy
for Sustainable Construction. We support new targets
for reducing waste, and for cutting energy and water consumption.
Achievement of these is likely to stem mainly from economic incentives,
as well as higher fuel costs. Any increase in taxation must be
accompanied by greater enforcement activity against fly-tipping.
The public sector as client also has an important role to play
in improving the construction process. Integrated team delivery
can reduce the waste arising from construction projects through
early planning and engagement with the supply chain. We saw examples
of this in our visits to the Royal London Hospital and the 2012
Olympic site in Stratford. Rigorous enforcement of the Common
Minimum Standards by the Office of Government Commerce should
also include requiring that all public sector projects are registered
for the Considerate Constructors Scheme, or some equivalent. This
will demonstrate best practice to the private sector, and help
improve the public image of the industry. (Paragraph 230)
75. Reducing the environmental impact of the
construction process is an important part of the Strategy for
Sustainable Construction and we welcome the Committee's support
for the new targets for reducing waste, and for cutting energy
and water consumption.
76. Tackling fly-tipping and wider waste crime
is a priority for the Government. We are aware that increasing
the cost of legitimate waste disposal may encourage fly-tipping
(although the evidence is not always definitive as to the
extent). The Government's 2007 Waste Strategy for England included
an illegal waste action plan which aims to reduce fly-tipping
through better prevention, detection and risk-based enforcement.
We have made clear that any local initiative to boost recycling
should be supported by fly-tipping strategies aimed at preventing
the illegal dumping of waste.
77. New Regulations came into force in April
2008 which make Site Waste Management Plans compulsory for all
construction projects in England costing over £300,000. Site
Waste Management Plans will encourage greater resource efficiency
in construction and help to reduce waste.
78. We also agree that the public sector as client
has an important role to play, and that integrated team delivery
can reduce waste. As planned in the Strategy for Sustainable
Construction, WRAP (Waste & Resources Action Programme)
has launched a voluntary agreement for clients, contractors and
other members of the supply chain to commit to delivering targets
for reducing waste to landfill. Defence Estates is one of the
signatories. This sector-wide approach will bring a consistent
approach to measurement and galvanise collective action.
79. The Common Minimum Standards do require registration
through a suitable Scheme such as the Considerate Constructors
Scheme.
Environmental sustainability: the housing sector
What the Government cannot influence through its
purchasing power it must achieve through regulation. Changes to
the Building Regulations have led to significant improvements
in the energy efficiency of new buildings. We support the Government's
target for all new build homes to be carbon neutral by 2016, and
the role of the Code for Sustainable Homes in
achieving this, but we recognise the extremely ambitious nature
of this target. The existing housing stock also needs to be made
more sustainable. To this end, we continue to believe the Government
should conduct a comprehensive review of the incentives for homeowners
to improve the environmental sustainability of their dwellings.
(Paragraph 244)
80. We welcome the Committee's support for the
target for all new homes to be zero carbon from 2016 and for the
Code for Sustainable Homes. The Government will shortly
be consulting on the definition of zero carbon to give industry
greater certainty and clarity to enable it to plan for 2016 in
terms of investment decisions and supply chain development.
81. We also agree that the existing housing stock
needs to be made more sustainable. The Government recently published
its response to the Communities and Local Government Select Committee
inquiry into Existing Homes and Climate Change (Cm 7428, July
2008). The response explained that the Government will be consulting
this Autumn on an energy efficiency strategy, which will include
energy efficiency in existing homes and non domestic buildings.
The consultation will address the challenges of helping consumers
and businesses to reduce emissions and save money on their fuel
bills.
Strategy for Sustainable Construction
Overall, we welcome the Government and industry's
joint Strategy for Sustainable Construction and
hope that it will set the agenda for improving the long-term environmental
performance of the sector. However, policy responsibility for
sustainable construction is particularly fragmented across government.
The Strategy itself is the product of six different departments.
It sets out which bodies are responsible for particular targets,
but no individual has overarching responsibility for its delivery.
A Chief Construction Officer would make an important contribution
to co-ordinating policy delivery across departments and promoting
sustainable construction. (Paragraph 245)
82. Several departments have policy responsibilities
relevant to sustainable construction. A major incentive behind
the development of the Strategy for Sustainable Construction
was therefore the need to present a coherent plan of how Government
and industry together are driving forward sustainability in this
industry.
83. To drive forward the implementation of the
Strategy in a coordinated way, a Delivery Board has been formed.
This comprises representatives of various government departments:
CLG, Defra, DIUS, DCMS, [DECC (Department of Energy and Climate
Change] and BERR as well as the OGC, the Sustainable Development
Commission and industry.
INNOVATION
Construction R&D
Unlike most other developed countries the UK does
not have a dedicated publicly funded research and innovation programme
for its construction sector. We believe this is unwise. Research
and innovation is necessary to meet the Government's targets for
sustainable construction and its own needs as a client. The structure
of the construction industry and the nature of its work mean that
the usual commercial drivers of R&D investment are either
missing or very weak—if there is market failure, government
support has to be provided. There needs to be an urgent assessment
of the level of support, and how it should be supplied, followed
by monitoring to ensure the support continues to meet the industry's
needs. A Chief Construction Officer would be best placed to do
this. We recognise that increased spending in one area has to
be offset by decreases elsewhere, or an increase in revenue. However,
the industry pays a considerable amount through the Landfill Tax
and Aggregates Levies. We believe there is scope for recycling
a proportion of these funds to the industry to help fund research,
even if this means additional funds have to be provided, either
from the taxpayer or the industry. Finally we note that a Chief
Construction Officer could also co-ordinate public sector spending
through the modest programmes that already exist to ensure its
effectiveness is maximised. (Paragraph 263)
84. We note the Committee's recommendation that
the proposed Chief Construction Officer could assess the level
of support for construction R&D and could co-ordinate public
sector spending to ensure its effectiveness is maximised.
85. One of the potential responsibilities of
the Chief Construction Officer could be to promote innovation.
In doing so, he or she would need to take account of public sector
spending on construction-related R & D and of how that can
yield maximum benefit.
86. The supplementary memorandum submitted by
BERR to the Committee explained why DTI decided in 2003 to move
from a sector-based approach to R&D support to one based on
support for strategic technologies and described the significant
levels of construction-related public R & D funding currently
available.
87. The White Paper Innovation Nation set
out policy commitments to drive increased demand for innovative
products and services. From next year, each Government Department
will include an Innovation Procurement Plan as part of its commercial
strategy, setting out how it will drive innovation through procurement
and use innovative procurement practices. A second commitment
was that DIUS will reform the Small Business Research Initiative
(SBRI), refocused on technology based research. The revised SBRI
is to be extended to all participating Departments by April 2009,
and Departments will be able to place any suitable contracts for
research and development in the construction sector via this programme.
88. The business-led Technology Strategy Board
(TSB) plays an important leadership role in stimulating business
R&D and innovation. It operates at arm's length from government
and has a cross-government role, in delivering a national Technology
Strategy and advising on polices which relate to technological
innovation and knowledge transfer.
89. The TSB has a good dialogue with the sector
to identify and prioritise needs through the Modern Built Environment
Knowledge Transfer Network and industry bodies such as the Construction
Industry Council, Construction Products Association, UK Green
Building Council and many others.
90. TSB support, including via a dedicated
Low Impact Buildings Innovation Platform, brings together supply
and demand-side measures to help UK industry innovate and benefit
from the opportunities arising. This support complements that
from the Research Councils, other government departments and agencies,
organised on both a thematic and sector-specific basis.
91. The Technology Strategy Board and the Research
Councils would be happy to engage with and take into account the
views of the proposed Chief Construction Officer, amongst others,
in helping inform their decision making.
REGULATION
The Building Regulations
The construction industry believes the Building
Regulations are too complex, and changed too often. We agree.
We welcome the Government's proposals to create a framework to
manage changes to the Regulations over a three-year cycle, and
to limit amendments on any single issue to once every six years.
We hope that this will effectively address the industry's concerns
on the timing of changes and the way in which frequent changes
hinder its strategic planning. We hope too that the Department
for Communities and Local Government will use the first review
cycle, which will begin in 2010, to address inconsistencies and
overlaps in the current Regulations. We are, though, disappointed
that a more radical simplification of the rules is not under consideration
and believe the possibility should be re-examined. (Paragraph
268)
92. We welcome the Committee's support for the
way we propose to conduct future reviews and amendments to the
Building Regulations. Stakeholders have confirmed that this regular
and systematic approach, combined with the standstill period for
industry to prepare for the incoming changes, will do a great
deal to help industry's forward planning and compliance with the
Regulations.
93. We will, in this approach, bring together
for review and revision those Parts of the Building Regulations
which are closely linked. For example, Part F (ventilation) needs
to be and will be reviewed alongside Part L (energy efficiency).
In doing so we will be better able to look for and address inconsistencies,
conflicts and overlaps between the Parts of the Regulations and
the guidance we issue in support of them.
94. We will also be looking, alongside these
reviews, at ways we might improve the guidance we issue, including
the Approved Documents, to help industry achieve compliance with
the functional Regulations.
95. We will shortly be publishing an implementation
plan outlining the actions we will be taking following the consultation
on the Future of Building Control. In this we will set out our
review plan for the coming decade, starting with the 2010 review
of the Buildings Regulations. This implementation plan will also
outline our plans for improving the building control system, including
modernising inspection, enforcement and alternative routes to
compliance. (In addition, we are working with HSE to consider
the scope for better integration of the Planning, Building Control
and Construction (Design and Management) (CDM) regimes, to simplify
matters for stakeholders and aid compliance.)
96. We note the Committee's disappointment that
we have not undertaken a more radical simplification of the rules
and the Committee's view that we should re-examine the possibility
of this.
97. The consultation on the Future of Building
Control marked the biggest overhaul of the building control system
since we moved from prescriptive regulation to a system based
on functional requirements under the 1984 Building Act. That consultation
made clear that stakeholders had confirmed this system was generally
working well. We recognise the need for increased compliance to
achieve the targets for more new and sustainable homes, whilst
reducing the burdens and costs placed on users of the system.
We believe that our implementation plan will address these issues.
98. It is essential we make urgent improvements
in the sustainability of buildings and reduce their impact on
the environment through raised Building Regulations standards,
supported by improved compliance. We believe our new approach
to reviewing the Regulations will deliver these policy objectives,
and that these aims might be compromised if industry had to come
to terms with more radical changes. That said, we remain open
to other ways to make improvements.
Amending the Construction Act
The Construction Act provides
the legal foundations for successful team-working. However, it
is widely accepted that it still has some weaknesses. After years
of consultation the Government has developed proposals, which
it believes will address many of the industry's concerns, particularly
those of sub-contractors. They appear to strike a sensible balance
between the interests of main contractors and subcontractors.
BERR's aim now should be to ensure the amendments fulfil the policy
objectives the Department has set out, and do not leave room for
exploitation. It is vital that the next Session's opportunity
to reform the legislation is taken. (Paragraph 155)
99. We are grateful to the Committee for taking
the time to consider the proposals to amend the Construction Act.
As the Committee rightly points out, we have sought to identify
consensus within the industry for the changes we might seek to
make. While this has been comparatively easy to achieve for the
adjudication proposals, it has not been possible in respect of
the payment provisions. Given the lack of consensus we consulted
on a number of proposals that sought to strike a balance between
the range of different views in the industry to which the Committee
has referred.
100. Our intention to introduce these amendments
in the 2008/09 Parliamentary Session was announced in the Government's
Draft Legislative Programme—Preparing Britain for the
Future. The final content of the 2008/09 Session will be set
out in the Queen's Speech which will take place on 3 December
2008.
TrustMark
Companies need to be able to show that they are
competent to give their clients confidence and to ensure a level
playing field for competition amongst suppliers. We hope the TrustMark
scheme will, in due course, become a recognised symbol of quality
for builders in the same way that CORGI is for gas installers.
This will take time, but with some 16,000 builders already registered,
the initiative has made good progress since its launch in 2006.
It is in the interests of reputable companies that the scheme
should succeed and we believe that the onus for funding and publicising
the scheme falls on the industry and not the Government. (Paragraph
272)
101. TrustMark continues to grow steadily, with
over 1000 new builders and 5 more scheme operators registered
in the last year to date. The branding has been seen on television
and in the national press, and public knowledge of the benefits
of using TrustMark registered firms is growing. BERR will continue
to assist this process wherever possible but agrees that the onus
for the formal marketing and funding rests with the industry.
4 November 2008
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