Memorandum submitted by the Construction
Industry Council—East Midlands
1. The Construction Industry Council East
Midlands ("CIC EM") encompasses the shire counties within
the East Midlands Development Agency boundaries. The CIC is the
representative forum for professional, research and specialist
business organisations in the construction industry, providing
a single voice in all sectors of the built environment and to
ConstructionSkills within the Sectors Skills Council.
2. CIC EM members are not employed by the
Construction Industry Council but are representatives of the various
construction professional bodies active in the region who give
up their time freely to support the aims and objectives of the
CIC.
3. CIC EM is active in the East Midlands
region being specifically involved in the following initiatives:
3.1 EMDA-led survey Are clients and developers
in the East Midlands ready for sustainable development? CIC
EM members were on the steering committee for the survey and attended
the half day workshop attended by clients, developers and construction
industry service providers;
3.2 EMDA-led workshop to input into the consultation
on the DTI Review of the UK Sustainable Construction Strategy;
3.3 the creation of an Employers Panel, in
conjunction with ConstructionSkills, with the aim of supporting
and implementing change to benefit regional employers of professionals
engaged in the construction industry;
3.4 compiling a survey of responses to construction-related
questions posed to regional Members of Parliament; and
3.5 the recent creation of a Constructing
Excellence best practice club for the city of Derby.
4. The above list is not exhaustive of CIC
EM's efforts and other sources of evidence are used in the compilation
of this response to the inquiry. We shall attempt to deal with
relevant issues in the order listed in Press Notice 23 of Session
2006-07 although in some cases, there is clearly some cross over.
EMPLOYMENT AND
PAYMENT PRACTICES
5. A large regional contractor went into
administration in the latter part of 2006. One of the main factors
cited was the failure of the developer client on one of the contractor's
major projects to make the necessary payments as and when they
fell due for payment under the contract. Payments were subsequently
not being made down the line and a number of the smaller subcontractors
and sub-consultants suffered financial difficulties as a result
of the non payment.
6. The fair payment principles of the Construction
Act are not working even though the Act has been in force for
over 10 years.
7. CIC EM consider that a cultural shift
in the industry is required in order to ensure fair payment mechanisms
are followed at all levels of the supply chain. Clients have a
responsibility to ensure fair payment practices are implemented
at every tier of the supply chain. CIC EM also believes that the
long awaited implementation of changes to the Construction Act
should be delivered by Central Government as a priority.
UK DEPENDENCE ON
IMPORTED LABOUR
AND EXPERTISE
8. The UK construction industry is becoming
increasingly dependent on the use of imported labour and expertise.
Whilst such use is to be welcomed and can help to address, in
the short to medium terms, the under capacity of the UK construction
industry such an approach is not sustainable for either the UK
market or the market where the labour and expertise originates.
It could be argued that it is unfair to take skills from other
countries who themselves are struggling to find the skills and
resources to develop their own economy and that we have a responsibility
to ensure we have enough "homegrown" labour and expertise
to meet our own needs.
MAINTENANCE OF
STANDARDS WITHIN
THE SECTOR
9. It is assumed that, if the larger firms
are engaged in the various initiatives for the construction industry
including partnering, sharing of best practice and sustainability,
this will eventually trickle down to the SME's. Take up and involvement
of this group seems to be very limited. It has been suggested
that one of the prime reasons for the lack of take up and engagement
could be that the SME's first thought when he wakes up in the
morning are questions revolving around "whether he will get
paid for the work he did yesterday and whether he will he get
paid for the work he does today?" It has also been suggested
that different strategies should be devised to engage SME's than
those already successfully reaching the larger organisations.
10. There is evidence that where best practice
is shared amongst fellow professionals, standards are maintained
and bettered. The use of Demonstration Projects and the publicising
of them through the various vehicles, for example Constructing
Excellence and EMCBE in the region can only serve to keep the
drive for quality at the forefront of construction clients' and
delivery partners' minds.
11. Central Government should ensure continuing
support for these centrally and regionally funded bodies. Strategies
should also be devised to ensure fair payment of SME's and to
engage these organisations.
CONSTRUCTION R&D
12. Research funding should be made available
to encourage re-use and refurbishment of existing buildings. Such
research could also look into innovative ideas as to how to retro-fit
measures to improve the carbon footprint and the quality of such
existing buildings rather than knocking them down and starting
again.
13. Insufficient resources are being allocated
to research and development in the construction industry. This
is not in keeping with its importance as the single biggest employer
and contributor to the UK economy. The industry should be encouraged
to collaborate with academia and to fund appropriate research
into new processes and materials. Central government can play
a part in this by offering fiscal incentives to increase research
funding from industry.
AVAILABILITY OF,
AND INVESTMENT
IN SKILLS
14. CIC EM is aware of the following concerns
from employers, clients, developers and service providers about
the lack of skilled professionals in construction:
— poor image of the construction
industry;
— low proportion of female entrants
(and even lower number returning following maternity leave);
— women were unable to progress;
— lack of basic literacy and numeracy
amongst school leavers and graduates required for technical skills;
— lack of softer interpersonal
skills required to engender teamworking;
— schools careers services considered
to be wholly inadequate to encourage young people into a professional
career in construction;
— the proposal to remove compulsory
study of design skills necessary for construction from the national
curriculum; and
— apart from the general shortage
of construction professionals there is consensus that building
services engineers and planners are in acute short supply.
15. CIC EM in conjunction with representative
construction employers in the region believe that construction
professionals are currently a limited resource, suffering from
high demands for labour and the system failing to deliver. Employers
are already stretched to capacity with trying to deliver the projects
and programmes in hand. They are also trying to ensure that their
staff adopt an appropriate work/life balance.
16. CIC EM believe that the recruitment
of construction professionals should be given the highest priority
in the region and that staff shortages are so acute there is a
risk that the growth in economic development will fall behind
other countries in Europe.
17. CIC EM believe that appropriate funding/subsidies/tax
breaks should be made available to employers of professionals
(and their employees) to encourage partnering and collaboration
with schools specifically to assist careers advisors with introducing
the many positive features of the construction industry to schoolchildren.
Only by putting forward the positive and challenging aspects of
the industry will schoolchildren be encouraged to take up a career
in construction.
18. The lack of schoolchildren aspiring
to a career in construction needs to be tackled at Department
for Education and Skills level. If DfES collaborated with ConstructionSkills
on this, CIC EM believes that teachers would be encouraged to
engage with the industry at national and local levels.
19. Further vocational training and educational
funding should also be made available to recruit, train and retain
professionals in the industry. Industry also needs assistance
in demonstrating appropriate career development prospects.
REGULATORY MATTERS,
SUCH AS
HEALTH AND
SAFETY, AND
THE BUILDING
REGULATIONS
20. Clients and developers expressed concern
about the regulatory regime, particularly with the inconsistent
guidance being given by planning departments in local authorities.
Clients and developers expressed a need for consistency.
21. CIC EM believes that regulatory reform
should be implemented to encourage consistency. Particular reference
is made to the environmental quality of new buildings and, for
example, CIC EM believe that the Code for Sustainable Homes should
be a mandatory requirement for all properties whether publicly
or privately owned.
22. CIC EM believe that the planning system
is in crisis with severe shortages generally in planning departments.
There is also a lack of good quality planning officers.
23. CIC EM believes that the pressure on
the planning departments within local authorities could be eased
if some form of regulatory reform were considered enabling private
organisations to carry out the functions on their behalf. This
could be implemented in a similar way to the way building inspectors
are approved and regulated. CIC EM believe that innovative solutions
could be encouraged by the use of the private sector in this role.
24. A debate on how best to align the planning
and building control systems to increase efficiency of use of
the resources available and to help deliver sustainable development
would be welcomed.
25. The recent changes to the building regulations,
in particular Document L and Document B, have not been introduced
with sufficient planning for the transitional phases. Many construction
professionals and building control officers are still confused
as to the proper application of the changes. Late changes to clauses,
over complex provisions and a failure to provide adequate documentation
in time for implementation are all cited as problems. The structure
of building regulations should be reviewed with a view to simplifying
their drafting, monitoring and application.
26. Regional stakeholders considered that
local government should have ultimate responsibility for co-ordinating,
balancing and implementing planning policy particularly in relation
to determination of regional spatial strategies.
27. CIC EM is concerned that the current
initiatives in construction health & safety may be affected
by proposed reductions in HSE staffing levels. Awareness campaigns
and higher standards should continue to be vigorously promoted,
to sustain recent improvements.
28. Responsibility for the construction
sector falls within the remits of a number of central and regional
government departments. This fragmentation has limited central
government's ability to influence and communicate effectively
with the industry. It has also made it difficult for industry
to communicate effectively and consistently with central government.
29. Because of the importance of construction
to the GDP, central government should consider the creation of
a separate government department with the consequent creation
of a Cabinet Minister whose sole remit is for construction. This
single department could then co-ordinate and engage with other
central and regional government departments with a consistent
message.
ENCOURAGING SUSTAINABILITY
30. Clients, developers and relevant service
delivery partners in the East Midlands believe they are reasonably
well informed about sustainable construction and climate change
but less well informed about sustainable communities. The organisations
were divided over whether they were willing to pay a higher capital
cost for sustainable buildings in order to achieve a lower running
cost.
31. Central and regional government should
take the lead in ensuring that whole life performance, whole life
costing and supply chain involvement are integral to all the work
that is commissioned. To achieve this, changes to year on year
budget allocations may need to be reviewed in order to permit
procurers to look beyond the end of the current financial year.
32. Fiscal measures (subsidies or taxes)
are considered to be key drivers to encouraging sustainability.
Developers and clients should also be encouraged, by tax reform,
to re-use and repair existing buildings.
33. The lack of appropriate planning skills
and the acute shortage of planners is seen as a barrier to implementing
sustainable development.
The Construction Industry Council—East
Midlands offers the above for use into the Committee inquiry into
the UK construction industry and would be pleased to offer further
oral evidence if requested.
9 May 2007
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