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he Government’s Construction Sector Deal has been broadly backed by ECA, the electrotechnical and engineering services trade body, and the Building Engineering Services Association (BESA). Both bodies support the focus on more highly skilled apprenticeships, digital processes, and whole life value. The attention given to SMEs, productivity and supply chain collaboration is also welcome. However,


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both bodies agree with the June 2018 FSB report, Chain Reaction, that more decisive and speedy action by Government is needed to ensure SMEs are onboard and protected before the industry can deliver any real productivity gains.


Rob Driscoll, ECA Deputy Director of Business Policy and Practice, commented: “Our sector is ready to play an important role in apprenticeships, digitalisation and securing whole life value. In light of


CONSTRUCTION SECTOR DEAL BSEE Trade bodies respond to Government Sector Deal


the devastating wider impacts of insolvencies like Carillion’s on industry’s capacity to deliver, fast and effective action is required to help the supply chain.


“Specifically, we need to see government ensure that new, fairer approaches to contract and payment practices will ensure the 99% of industry that are SMEs are not unfairly disadvantaged, carry reduced risk and


experience collaborative supply chains. We are here to help the Construction Leadership Council and Government make that happen.”


uThe industry needs ‘monumental reform’ in a postGrenfell and post Carillion environment, says BESA’s Alexi Ozioro.


Alexi Ozioro, Public Affairs and Policy Manager for BESA, said: “The whole industry eagerly anticipated the sector deal and what exactly it was going to say. Now we have it, we are broadly pleased. It is good to see Government note the current business model is unsustainable and acknowledge that unfair payment is damaging the industry. Without question, the industry needs monumental reform in a post-Grenfell and post-


Carillion environment; not to mention in the midst of the housing crisis.


“I am fascinated to see what the new, ‘fairer approach to contracts’ and payment practice will be. Government know SMEs are


unfairly disadvantaged, and with ready-made solutions like the Aldous Bill and other options like abolition on the table, I hope government will act sooner rather than later.”


The key points:


The new Construction Sector Deal has set out the Government’s ambitions for the sector to deliver: u better-performing buildings that are built more quickly and at lower cost; u lower energy use and cheaper bills from homes and workplaces; u better jobs, including an increase to 25,000 apprenticeships a year by 2020; u better value for taxpayers and investors from the £600bn infrastructure and construction pipeline u a globally-competitive sector that exports more, targeting the $2.5 trillion global infrastructure market.


The Construction Sector Deal looks to form ambitious partnerships between government and industry, to transform the sector’s productivity through innovation, development, and a more highly skilled workforce. Worth £420 million, the deal aims to increase the digitalisation of the construction industry, and build new homes quicker, cheaper and with less disruption.


The government hopes that this will boost its ambitions to build 1.5 million new homes by 2022, and support the Clean Growth Grand Challenge to reduce the energy consumption of new builds by half.


An opportunity to address the fault lines


Secretary Greg Clark has received wholehearted support from the Specialist Engineering Contractors (SEC) Group. SEC Group represents the largest sector (by value) of the UK’s construction industry. SEC Group’s CEO Rudi Klein said that the Sector Deal was now a real opportunity to address the fault lines in the industry which have tarnished its image and damaged the prospects for thousands of SMEs in the industry. Rudi Klein added: “The Grenfell tragedy and the Carillion debacle have highlighted the dysfunctionalities in procurement and delivery especially abusive business practices and the lowest price culture which have had a detrimental impact on quality.”


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SEC Group will be urging the Government to set up implementation mechanisms to ensure that any changes will transform existing practice.


‘We now look to the Government to make good on its promise’ – BSRIA


government-industry Sector Deal worth £420m to transform construction through innovative technologies to increase productivity and “build new homes quicker” with “less disruption” with a highly skilled workforce. Julia Evans, Chief Executive, BSRIA, said: “BSRIA welcomes this announcement as part of government’s mission to halve the energy use of new


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SRIA has welcomed the new joint


buildings by 2030 through developing innovative energy and low carbon technologies driving lower cost and high quality construction techniques. BSRIA has said time and time again that more quality housing is needed


throughout the length and breadth of the UK.


“And reducing the cost of retrofitting existing buildings to make them more efficient and more sustainable is at the heart of BSRIA’s


continuing strategy. Indeed, BSRIA and its members lead the way in delivering quality housing. We now look to government to make good on its promise.” BSRIA is a non-profit distributing, member-based association, providing specialist services in construction and building services.


uBSRIA Chief Execuve, Julia Evans.


R IET looks forward to playing a role


ick Hartwig, Policy Lead for Built


Environment, at the Institution of Engineering & Technology (IET), said: “We are inspired by the ambition of the sector deal. The IET is looking forward to playing a role in improving the quality of our built environment and making a step change in productivity. We aim to support the digital transformation of the sector.


“We want to highlight the importance of supporting the development of high quality skills and education. The built environment will become an


interconnected system of people and technology, we will need to think about how the IET supports the development of digital engineering capability. “With many high value jobs


being created through digitalisation, there has never been a greater need to focus on tackling the skills gap and prioritising the quality of training provision. This will ensure the industry retains and recruits a competent workforce with the right practical and technical skills for careers in modern construction. Without this, economic stability still remains uncertain.”


he launch of the Construction Sector Deal by Business


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BUILDING SERVICES & ENVIRONMENTAL ENGINEER AUGUST 2018 7


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