Crackdown
on Cowboy Builders - Quality Mark rides into town to protect homeowners
from roguetradesmen
Tradesmen from Leeds and West Yorkshire were invited yesterday to join
hundreds of businesses, which have signed up to the Government's new anti-cowboy
builder initiative, Quality Mark, as the scheme is introduced to local
firms.
Leeds' Elland Road soccer ground was the venue for the briefing on the
project, where over 1,000 local builders and tradesmen were invited to
meet the people running the Scheme and find out how to join up.
Construction Minister Brian Wilson said:
'Quality Mark can become the nationally recognised way to combat cowboy
builders. It will not only provide peace of mind to the public, but also
help reputable tradesmen distinguish themselves from the shoddy workmanship
and consumer rip-offs of the cowboys.
'The scheme will sort the genuine builders from the rogues and allow homeowners
to choose local tradespeople they can trust. By signing up to Quality
Mark, tradesmen improve their businesses and give themselves a competitive
advantage, both now and in the future.
'This is especially important in a cyclical industry like construction,
where business pressures in a downturn can be severe. Moreover, while
today's economic climate is providing substantial
work for builders, the Quality Mark is already proving its worth with
companies gaining access to a broader range of customers who value quality
workmanship.
'Authorities and businesses in Leeds acknowledge there is a cowboy builder
problem there and have already begun laudable local schemes to protect
vulnerable elderly people from a wide range of rogue traders. As the national
scheme aimed exclusively at the home improvement sector, Quality Mark
will complement and strengthen such worthwhile initiatives.'
ARGS Ltd., a Walsall firm that signed up during the Quality Mark pilot
phase, has reported an increase in turnover of £200,000 as well
an influx of enquiries since the firm received the Quality Mark.
Hundreds of local tradesmen in the domestic repair, maintenance and improvement
market are expected at the November event in Leeds, where they will find
out how Quality Mark can benefit their businesses in similar ways.
Leeds City Council and West Yorkshire Trading Standards, local partners
for the DTI, said they were supporting the scheme in response to the large
number of complaints they receive - nearly 6,000 last year alone - about
cowboy builders. It tops the public complaints league in Leeds and West
Yorkshire. This harms the reputation of the construction industry as well
as being a headache for homeowners.
Quality Mark provides reputable builders with a means of demonstrating
the standard of their work through a simple independent assessment. Once
approved, tradesmen will have access to more discerning customers seeking
peace of mind and an independent complaints procedure that will help protect
them from malicious complaints and assist in the pursuit of bad debts.
The Scheme is government and industry backed and will provide local consumers
with a simple way of ensuring quality tradesmen work in their homes. It
will be launched to homeowners once a sufficient number of local tradespeople
have signed up.
Applicants can sign up to the scheme by phoning 0845 300 80 40 or
by going to http://www.qualitymark.org.uk
New Construction Orders: August 2002
Orders in the twelve months to August 2002 rose by three per cent compared to orders in the previous twelve months and orders in the three months to August 2002 rose by one per cent compared to the same period a year earlier. Orders in the three months to August 2002 were unchanged compared to the previous three months.
Private housing orders in the twelve months to August 2002 rose by four per cent compared to the previous twelve months. Orders in the three months to August 2002 rose by two per cent compared with the previous three months and rose by one per cent compared with the same three months a year ago. Public housing and housing association orders in the year to August 2002 rose by seven per cent when compared to the previous year. Public housing and housing association orders in the three months to August 2002 rose by 45 per cent compared to the previous three months, and by 17 per cent compared to the same three months a year earlier. All comparisons in this sector are affected by large variations due to its relatively small size.
Infrastructure orders in the twelve months to August 2002 fell by one per cent compared with the previous twelve months. Orders in the three months to August 2002 were 19 per cent lower compared with the previous three months, but were four per cent higher than in the same period a year earlier. Short term comparisons in this sector continue to be dominated by the extremely high March figure.
Public non-housing orders (excluding infrastructure) in the twelve months to August 2002 were 19 per cent higher when compared with the previous twelve months. Orders in the three months to August 2002 were two per cent lower compared with the previous period, but were six per cent higher compared to the same three months a year earlier
Private commercial orders in the twelve months to August 2002 were five per cent higher compared to the previous twelve months. Orders in the three months to August 2002 were nine per cent higher compared to the previous period, and were one per cent higher than in the same period a year earlier.
Private industrial orders in the twelve months to August 2002 fell by 20 per cent compared with the previous twelve months. Orders in the three months to August 2002 were one per cent higher than in the previous period, but were 21 per cent lower compared to the same period a year earlier.
New Construction Orders: July 2002
Orders in the twelve months to July 2002 rose by five per cent compared to orders in the previous twelve months and orders in the three months to July 2002 rose by eight per cent compared to the same period a year earlier. Orders in the three months to July 2002 fell by four per cent compared to the previous three months, despite a high July figure. Comparisons in recent months are still affected by the exceptional infrastructure result in March.
Private housing orders in the twelve months to July 2002 rose by eight per cent compared to the previous twelve months. Orders in the three months to July 2002 fell by three per cent compared with the previous three months but rose by two per cent compared with the same quarter a year ago. Public housing and housing association orders in the year to July 2002 rose by 15 per cent when compared to the previous year. Public housing and housing association orders in the three months to July 2002 rose by 27 per cent compared to the previous three months, and by 40 per cent compared to the same quarter a year earlier. All comparisons in this sector are affected by large variations due to its relatively small size.
Infrastructure orders in the twelve months to July 2002 rose by three per cent compared with the previous twelve months. Orders in the three months to July 2002 were 31 per cent lower compared with the previous three months, but were 24 per cent higher than in the same period a year earlier. Comparisons in this sector continue to be dominated by the extremely high March figure.
Public non-housing orders (excluding infrastructure) in the twelve months to July 2002 were 22 per cent higher when compared with the previous twelve months. Orders in the three months to July 2002 were six per cent higher compared with the previous period, and were 12 per cent higher compared to the same three months a year earlier
Private commercial orders in the twelve months to July 2002 were four per cent higher compared to the previous twelve months. Orders in the three months to July 2002 were 15 per cent higher compared to the previous period, and were 13 per cent higher than in the same period a year earlier.
Private industrial orders in the twelve months to July 2002 fell by 19 per cent compared with the previous twelve months. Orders in the three months to July 2002 were 15 per cent lower than in the previous period, and were 31 per cent lower compared to the same period a year earlier.
Public Enquiries: 020-7215 5000
Textphone (for people with hearing impairments): 020-7215 6740
Web: http://www.dti.gov.uk
SME
Builders Sceptical on Government 'Anti-Cowboy' Measures
Small and medium-sized building firms have little confidence in the measures
being taken by government to drive out cowboy builders according to a
survey by the Federation of Master Builders (FMB).
In its latest member survey, the FMB, which represents 13,000 legitimate
building SMEs, found increasing concern amongst those working in the private
housing repair, maintenance and improvement market. This is the sector
most affected by the distortion of competition between those incurring
the costs of complying with the latest legislation and a plethora of registration
schemes, and those who do not. Competition in this sector is also adversely
affected by the rate of VAT levied on home improvements and repairs, which
further widens the gap between quotes from legitimate builders and those
from unregistered 'cowboys'. The survey also found evidence of a rise
in a new form of customer, described as 'cowboy clients'. These unwelcome
customers may pay late or not at all, or waste the time of builders registered
for VAT by soliciting estimates that they use only as benchmarks with
which to compare the deals offered by others working in the black economy
for cash in hand.
Said FMB director general, Ian Davis:
'Our members, in common with many SMEs in other sectors, are being put
under increasing pressure by the continual increase in bureaucracy and
red tape emanating from government legislation. The costs involved in
complying with these schemes has to be passed on to customers, which coupled
with the high rate of VAT levied on RMI work, puts the legitimate building
industry at a significant disadvantage.
'This is seen most clearly in the private RMI market, where high consumer
spending on home improvement has seen an increase in cowboy operators.
The rise of the 'cowboy client' is perhaps an inevitable result, as is
the rise in customer complaints. If customers are prepared to gamble the
quality of their building work against the cheapest price quoted, it is
an unfortunate fact of life some will be disappointed with the result.'
However, Mr Davis welcomed the renewed interest, by the Department of
Trade and Industry and Customs and Excise, in the impact that a reduction
in VAT on building work would have in improving consumer protection and
marginalising rogue traders.
'The FMB has campaigned for a reduction in VAT on RMI work for many years
and we are naturally pleased to see any progress towards that end.'
FMB/FSB
Encouraged by Government to Propose Change to Self-Certification
Following their highly successful lobbying campaign to reform the introduction
of self-certification under the Building Regulations, the Federation of
Master Builders (FMB) and the Federation of Small Businesses (FSB) are
encouraged that the Government has agreed to review the pilot self-certification
scheme after its first year of operation.
Both organisations met recently with the Minister responsible, Christopher
Leslie, in a successful first step to bring the FMB/FSB and Office of
the Deputy Prime Minister (ODPM) closer together in their work on self-certification
under the Building Regulations. ODPM will be keeping the schemes under
constant review and will be actively considering the possibilities for
reform. The FMB and FSB were encouraged to bring forward proposals for
a significant reduction in the administrative burden imposed by self-certification.
Both organisations have argued that the introduction of multiple self-certification
schemes across narrow sectors of the construction industry will be economically
damaging to legitimate SME building firms and could render them uncompetitive
with rogue traders. Their argument gathered force last month when the
suggested arrangement by which Quality Mark members did not have to pay
additional fees to FENSA collapsed.
Speaking after the meeting, Ian Davis, Director General of the FMB, said:
'It is a good start that the Minister is listening to the general building
industry and the representatives of smaller firms. We look forward to
being able to work together with the Government to develop reforms to
the self-certification process.
'We want a self-certification system that ensures compliance with the
Building Regulations without imposing unfair burdens on firms which work
in more than one trade and avoids confusing consumers with different levels
of vetting, inspection and financial protection.'
Charles McKeown, FSB Chairman of Construction, added:
'The Government appears to be willing to learn the lessons from the introduction
of the FENSA scheme in particular and will be consulting much more closely
with industry on future self-certification initiatives. Nevertheless,
there is still a lot of work to be done to ensure that the bureaucratic
burdens and costs of these schemes do not lead to a drift into the informal
economy.'
Housebuilding:
July 2002
In July 2002, it is provisionally estimated that 18,100 dwellings were
started in Great Britain compared with 16,400 in July 2001. The relatively
high July figure is likely to be due to starts being postponed from June,
which was affected by the Jubilee Bank Holidays and the World Cup.
Completions numbered 14,600 compared with 14,400 the previous year. In
the latest three months 47,700 dwellings were started, down 5 per cent
on the same three months a year ago, while total completions at 43,500
were up 5 per cent on the same three months a year ago.
Seasonally adjusted comparisons. In the latest three months there were
an estimated 42,800 total starts, down 12 per cent on the previous three
months, and down 5 per cent compared with the same period a year ago.
On the same basis of comparison private enterprise starts were 38,300,
down 11 per cent on the previous three months and down 6 per cent compared
with a year ago.
Total completions were 42,500 including private enterprise completions
of 37,900, were up 2 per cent and 3 per cent respectively, comparing the
latest three months with the previous three months. Total completions
were up 6 per cent and private enterprise completions were up 9 per cent
compared with the previous year.
Figures for England show larger falls than those for Great Britain. Total
starts, 34,000 for the last three months, were down 16 per cent on the
previous three months and down 9 per cent on the same period a year ago.
Total completions, 33,900 for the last three months, were at the same
level as the previous three months and up 6 per cent on the same period
a year ago.
Builders Show Growing Interest in Quality Mark
Builders from all over the rural Heart of England apparently 'flocked' to learn about the government backed Quality Mark scheme which is being introduced to combat cowboy builders.
Over 100 tradesmen and women from Warwick, Coventry, Solihull and surrounding areas packed out the council chamber at Warwick's Shire Hall on Tuesday16 September to hear about the scheme, which they can join.
Officials from the Department of Trade and Industry, independent expert scheme assessors from the building industry and Adrian Levett, Head of Warwickshire County Council's Trading Standards, were on hand to endorse the scheme and explain the benefits of Quality Mark.
Welcoming builders, electricians, plumbers and other craftsmen to the trade launch of Quality Mark for the Warwick region, Adrian Levett said: 'Complaints about poor quality building work, carried out by cowboys and the rogue element within the trade, are one of the biggest sources of complaint we get.
'One of the biggest concerns we and the public have is about how particularly vulnerable, elderly people can fall victim to these rip-off merchants. It simply isn't acceptable at a time when growing numbers of them want to remain in their own homes and are being actively encouraged to by social services and other agencies.
'Quality Mark offers a good workable solution to the problem of cowboy builders, reassuring homeowners and enhancing the reputation of builders at the quality end of the market.'
Warwickshire Trading Standards took 15,000 complaints from the public last year, the largest number relating to home improvement work by cowboy builders, which accounted for 745 of those complaints.
The Quality Mark has been launched to deal with the rising number of complaints about cowboy builders in the domestic repair, maintenance and improvement sector, where nationally 100,000 complaints are received every year.
The scheme works by placing contact details of builders and tradesmen who reach the standard required by the Quality Mark on a register. This can be accessed free of charge on low cost telephone number 0845 300 80 40 or through the internet at http://www.qualitymark.org.uk.
Once enough tradesmen from a region are assessed and included on the register, the scheme is launched to the public there, which will be happening in the Warwick area over the next few months.
Major
Conference to Review the EU Energy Performance of Buildings Directive
The adoption of the Energy Performance of Buildings Directive by the EU
Council of Ministers on 6th June has far-reaching implications for the
owners, operators and developers of buildings in the UK.
A major conference organised by BRE and the Institute of Energy to be
held at BRE, Garston on 29th October 2002 in association with CIBSE, will
review the requirements of the Directive, together with its likely impact
on the UK construction sector.
Key provisions of the Directive are:
* Minimum requirements for the energy performance of all new buildings
* Minimum requirements for the energy performance of large existing buildings
subject to major renovation
* Energy certification of all buildings (with frequently visited buildings
providing public services being required to prominently display the energy
certificate)
* Regular mandatory inspection of boilers and air conditioning systems
in buildings.
With buildings in the UK accounting for nearly 50% of all carbon dioxide
emissions the Directive provides a significant and realistic opportunity
to achieve a substantial reduction in energy usage within buildings. David
Strong, Managing Director of BRE’s Energy Division says, 'Major issues
remain to be resolved regarding implementation of the Directive; this
conference provides an important opportunity for informed debate'.
Louise Kingham, Secretary and Chief Executive of the Institute of Energy
says, 'The Directive provides opportunities to improve energy efficiency
in existing and new buildings and the conference will be of particular
relevance to anyone involved in the procurement, design, construction
or management of buildings'.
The Directive becomes a legal requirement in the UK within three years
and it has profound implications for the UK construction sector with attendance
at this event being particularly recommended for anyone concerned with
the future strategic direction of their business.
For further information on this event, contact Katie Moore at the Institute
of Energy on 020 7580 0008 or email mailto:kmoore@instenergy.org.uk.
For information about:
* BRE - http://www.bre.co.uk
* The Institute of Energy -http://www.instenergy.org.uk
* CIBSE - http://www.cibse.org
Construction
Economic Indicators
Construction PMI indicated a slight pick up in growth of industry activity
in July, but demand hits seven-month low.
The UK construction sector registered a further marked expansion of activity
in July, according to the latest CIPS/ NTC Research survey. The headline
seasonally-adjusted Construction Purchasing Managers' Index (PMI) - a
seasonally-adjusted indicator designed to provide a single figure snap-shot
of construction activity -recorded 54.7, remaining above the critical
no change mark of 50.0 for the forty-second consecutive month. However,
despite a slight rise in the PMI from 54.3 in June, the rate of expansion
of industry activity was weaker than that seen throughout the four month
period from February to May.
Roy Ayliffe, Director of Professional Practice at the Chartered Institute
of Purchasing and Supply, said: 'Purchasing Managers fulfilled orders
with existing stocks when possible in June, to avoid margins being squeezed
by the high rate of input price inflation. Expansion of the housing industry
slowed slightly in July, yet economic conditions still remain favourable.'
Housing activity continued to rise at the fastest rate of the three broad
categories of construction activity covered by this survey in July, despite
growth being the slowest for five months. The seasonally-adjusted Housing
Activity Index measured 56.5 in July, compared with 57.1 in June. Favourable
economic conditions in the housing sector was again widely cited by those
panel firms reporting increased housing activity during the month.
Improved business conditions saw expansion of activity in the commercial
construction sector for the forty-third successive month. The rate of
growth of commercial activity picked up slightly compared to June, but
was slower than that seen in both April and May. The Commercial Activity
Index measured 54.3 in July, up from 53.8 in June. Meanwhile, growth was
again the weakest in the civil engineering sector, which rose at the slowest
rate since January having eased for the third month running following
April's near-two year high. The Civil Engineering Activity Index measured
52.8 in July, just down from 53.0 in June.
Robust growth of order books continued to drive further expansion of industry
activity in July. The seasonally-adjusted New Orders Index measured 54.0
in July, compared with 54.8 in June, remaining above the critical no change
mark of 50.0 for the forty-fifth month running. Nevertheless, the rate
of growth of order books eased for the fourth successive month to the
weakest since last December.
Higher activity levels and fuller order books prompted panel firms to
further increase their quantity of raw material purchases in July. However,
the rate of growth of purchasing activity was the weakest in the current
upturn in buying which began in February 1999. The seasonally-adjusted
Quantity of Purchases Index recorded 50.7 in July, compared with 51.6
in June.
Despite July's survey indicating only a modest rise in demand for raw
materials, suppliers' delivery times lengthened at the fastest rate since
December 2000. The seasonally-adjusted Suppliers' Delivery Times Index
recorded 43.3 in July, compared with 44.7 in June, indicating lengthening
lead-times for the fortieth month running. Panel firms generally attributed
increased lead-times to shortages of certain construction commodities
at suppliers, in particular reinforcement steel.
Shortages of certain construction commodities, the effects of the new
government tariff on aggregates, and the weakening of the pound against
the Euro (which made imported goods more expensive) were frequently cited
by panel firms as the main components behind a further sharp rise in average
input costs in July. Moreover, the rate of inflation picked up markedly
compared to June's four-month low. The seasonally-adjusted Prices Index
recorded 65.1 in July up from 62.6 in June.
Construction sector employment continued to rise in July, with panel firms
recruiting additional staff to satisfy higher levels of activity and expected
increases in new business. The seasonally-adjusted Employment Index measured
52.2 in July, down from 53.2 in June. Nevertheless, the rate of growth
of staffing levels was only modest, and the weakest since January.
Finally, the degree of optimism in the UK construction sector improved
in July, with just under two-thirds of all panel firms anticipating higher
levels of activity in twelve months' time than at present.
CIPS: Tel: 01780 756777
Output
and Employment in the Construction Industry: Second Quarter 2002
The total volume of construction output
in the year to the second quarter of 2002 rose by seven per cent compared
to the previous twelve months. Overall new work rose over the same period,
despite a decrease in the private industrial sector. Repair and maintenance
rose, with increases in the private housing and private and public non-housing
sectors easily offsetting a fall in the public housing sector. Output
in the second quarter of 2002 rose by one per cent compared to the first
quarter of 2002 in volume terms and increased three per cent in current
prices.
The total volume of new work in the year to the second quarter of 2002
was nine per cent higher compared with the previous year and was unchanged
in the second quarter compared with the previous quarter. The total volume
of repair and maintenance work was five per cent higher in the twelve
months to the second quarter of 2002 compared with the previous year,
and rose by two per cent in the second quarter of 2002 compared to the
previous quarter.
New private housing work in the year to the second quarter of 2002 was
five per cent higher compared with the previous year but the second quarter
was two per cent lower than the first quarter of 2002. New work in the
public housing sector in the year to the second quarter of 2002 was 14
per cent higher (on a small base figure) compared with the previous year
and the latest quarter was one per cent lower than the previous quarter.
New infrastructure output in the twelve months to the second quarter of
2002 was 11 per cent higher compared with the previous year, but the second
quarter of 2002 fell by two per cent compared with the first quarter of
2002.
New construction work in the private industrial sector in the year to
the second quarter of 2002 was six per cent lower compared with the previous
year, and the second quarter was six per cent lower than the previous
quarter. New private commercial output in the year to the second quarter
of 2002 increased by nine per cent compared to the previous year and increased
by two per cent in the second quarter compared to the first quarter of
2002. New work in the public non-housing sector (excluding infrastructure)
in the year to the second quarter of 2002 rose by 22 per cent compared
to the previous year and the second quarter rose by seven per cent compared
with the previous quarter.
Housing repair and maintenance work (including improvement work) in the
public sector was four per cent lower in the year to the second quarter
of 2002 compared with the previous year and was two per cent lower in
the most recent quarter compared with previous quarter.
Housing repair and maintenance work in the private sector in the twelve
months to the second quarter of 2002 was three per cent higher compared
with the previous year and was nine per cent higher in the second quarter
compared to the previous quarter.
Repair and maintenance work in the public non-housing sector in the year
to the second quarter of 2002 was 19 per cent higher compared with the
previous year, but was five per cent lower in the most recent quarter
compared with the first quarter of 2002. Repair and maintenance work in
the private non-housing sector in the year to the second quarter of 2002
was four per cent higher compared with the previous year and was two per
cent higher in the most recent quarter compared with the previous quarter.
The seasonally adjusted number of employees in employment in April 2002
was two per cent higher compared with January 2002 and was eight per cent
higher compared with April 2001. Total employment (including the self-employed)
in April 2002 was two per cent higher compared with January 2002 and was
seven per cent higher compared with April 2001.
Overseas
Construction by British Firms - 2001 Report
A recent report shows overseas construction activity by British-based
contractors during 2001. The figures cover all overseas building &
civil engineering contacts that are controlled from the UK.
New Contracts
Provisional figures indicate that, in 2001, British construction companies
secured overseas contracts worth £4.7 billion compared with £3.9
billion won in 2000. The largest increase was for Africa but all areas
apart from the Middle East and Oceania showed an increase.
North America accounted for almost 40% of the total with countries of
the European Union accounting for a further 15%.
Work Done
The value of work done during 2001 was £4.6 billion compared with
£3.9 billion during 2000. Only the Middle East and Oceania experienced
a decrease.
Work Outstanding
At the end of 2001, the value of work outstanding stood at £5.0
billion, some £100 million higher than the £4.9 billion at
the end of 2000, with the increases for countries in Europe and Africa
and decreases for Hong Kong and countries in the Middle East..
Housebuilding:
June 2002
In June 2002, 13,400 dwellings were started in Great Britain compared
with 17,000 in June 2001. Some 46,600 starts were estimated in the three
months to June compared with 48,800 in the first quarter of 2002. The
low figure in June is likely to reflect the Jubilee Bank holidays and
the World Cup.
Dwelling completions were however, up in June, 14,100 compared with 13,800
in June 2001. Similarly, there were 43,000 completions in the three months
to June compared with 38,700 in the first three months of 2002.
Seasonally Adjusted Comparisons
The seasonally adjusted figures confirm the relatively low number of starts
in June, which depresses the second quarter of 2002, 8 per cent down on
the first quarter. The figures also show that completions were not affected,
up 4 per cent in the second quarter compared with the first three months
of 2002.
Figures for dwelling starts in England show similar trends to those for
Great Britain, down 7 per cent in the three months to June compared with
the first quarter of 2002. Dwellings completed in England showed a higher
increase of 7 per cent over the same periods.
Nine
Construction Firms Fined More Than £28,000 After HSE Prosecutions
Nine construction companies were fined a total of more than
£28,000 after the Health and Safety Executive (HSE) prosecuted them
for breaching health and safety regulations governing the danger of workers
falling from heights.
The prosecutions took place at City of London Magistrates’ Court
on Wednesday 10 July. They represented one of the largest number of cases
HSE has brought to court in one day, and followed a week-long construction
safety blitz in London between 29 April and 3 May this year.
The nine companies, all based in London and the South East, were fined
a total of £28,050 with £4,419 costs, after pleading guilty
to offences under Regulation 6 of the Construction (Health, Safety and
Welfare) Regulations 1996 (CHSW), which governs the danger of falls from
heights.
A tenth company, E J Roberts Roofing, of Limes Road, Beckenham, BR3 2NS,
prosecuted under the same regulations, pleaded not guilty, and its case
was adjourned.
Speaking after the hearings, HSE’s prosecuting inspector, Barry Mullen,
said:
'We are pleased with how the cases have gone. We have sent out a significant
message to the construction industry that HSE is ready to deal with the
risk of falls from height in a positive and firm manner. We will not flinch
from taking strong enforcement action against anyone who does not comply
with health, safety and welfare laws.
'Most of the firms prosecuted had viewed the action taken against them
as positive and are putting measures in place to improve safety, although
the construction industry still has a long way to go.'
HSE’s blitz revealed that many of the capital’s construction
sites still have poor health and safety working standards. Enforcement
action was taken against almost two-thirds of the sites visited.
223 construction sites were inspected during the blitz and 110 Prohibition
Notices were served. Unsafe work was stopped on nearly half the sites
visited for issues such as a failure to provide proper fall protection
and a lack of welfare facilities. A further 11 Improvement Notices were
issued, most for inadequate welfare facilities.
The blitz was the first of a rolling programme of inspections to be held
across the country this year and concentrated on falls from height and
welfare.
New Guidance Provides Key to Harmony in the Construction Industry
New guidance aimed at avoiding costly construction site disputes through 'referees' was launched recently by Construction Minister Brian Wilson.
In a speech to key players in the industry, Mr Wilson said: 'It is right that the Construction Industry should continue to resolve disputes quickly and cheaply through expert adjudicators rather than through the courts.'
In the early 1990s the construction industry was rocked to the core by recession when disputes were even more common. It was not unusual for workers to be sent away from uncompleted projects and sites left to be battered by the weather. Much money was wasted on lengthy court battles, often ending in insolvency and projects months behind schedule.
The new adjudication guidance follows a review by the Construction Umbrella Bodies (CUB) of legislation that came into force in May 1998, which was aimed at making the costly court battles of the early 1990s a thing of the past, and intended to:
- ensure different contracts between designers, suppliers, sub-contractors, contractors and clients stated clearly what would be paid, to whom and when, to resolve the costly, time-wasting disputes of the past;
- outlaw 'pay-when-paid' clauses that resulted in serious delays to construction projects; and,
- introduce a statutory right to adjudication to avoid costly and lengthy litigation.
Four years after the introduction of the legislation, the industry as a whole is better at delivering projects without the extraordinary delays and waste of the past. However, the results of the CUB review (2000) and Government consultation document Improving Adjudication in the Construction Industry (2001) call for greater clarification of key contentious areas of the adjudication process.
The resulting guidance achieves this and advises adjudicators of the practical steps open to them to make the process a smooth and successful one. Following broad consultation with CUB and adjudicators, a consensus was reached. Consultees agreed that amendments to the 1998 legislation were required in one area only:
- to prevent the party calling for adjudication from having to pay the other party's legal costs; and that,
- guidance, not new legislation, was the best way to ensure the original Act was more effective, while not re-opening the delicate and hard-won compromises that underlay the original legislation.
Mr Wilson said: 'I intend to seek parliamentary time to make amendments to Part II of the Housing Grants, Construction and Regeneration Act. In the meantime, I see the fact that this was the only issue raised, for which there is a consensus of support for amendments, as a strong indication that the legislation is working.
'The role of the legislation has to be seen in the wider context of the broad range of reforms aimed at changing the culture of construction and creating a more team-based co-operative approach enshrined in Rethinking Construction.
'Clearly it is impossible to make real progress with partnering, or a team-based approach to construction projects, without first establishing a fair approach to payments.
'In order to deliver the demanding targets on cost reduction, improved value, zero defects, improved predictability, better health and safety, higher productivity and higher profits, it is essential to establish a co-operative team approach, a common sense approach to cash-flow and, of course, trust.'
Many of the Rethinking Construction demonstration projects have completely rejected the adversarial approach of the past and have in turn outperformed the construction industry as a whole, with:
- 71% of demonstration projects on target to meet initial cost estimates compared with 50% in the industry as a whole;
- 70% on time compared with 61% in the industry as a whole;
- a 2% reduction in costs compared to last year (the industry as a whole has increased its costs by 2%)
DTI: New Construction Orders: JUNE 2002
Orders
in the twelve months to June 2002 rose by three per cent compared to orders
in the previous twelve months and orders in the second quarter of 2002
fell by two per cent compared to the same quarter a year earlier. Orders
in the second quarter of 2002 fell by 18 per cent compared to the previous
quarter. This was largely due to a return to relatively normal orders
in the infrastructure sector following extremely high orders in this sector
earlier in the year.
Private housing orders in the twelve months to June 2002 rose by five
per cent compared to the previous twelve months. Orders in the second
quarter of 2002 fell by nine per cent compared with the previous quarter
but remained unchanged compared with the same quarter a year ago. Public
housing and housing association orders in the year to June 2002 rose by
eight per cent when compared to the previous year. Public housing and
housing association orders in the second quarter of 2002 fell by nine
per cent compared to the previous quarter, yet remained unchanged compared
to the same quarter a year earlier. All comparisons in this sector are
affected by large variations due to its relatively small size.
Infrastructure orders in the twelve months to June 2002 were unchanged
compared with the previous twelve months. Orders in the second quarter
of 2002 were 56 per cent lower compared with the previous quarter, and
were 11 per cent lower than in the same period a year earlier. Comparisons
in this sector continue to be dominated by the extremely high March figure.
Public non-housing orders (excluding infrastructure) in the twelve months
to June 2002 were 19 per cent higher when compared with the previous twelve
months. Orders in the second quarter of 2002 were three per cent lower
compared with the previous period, and were two per cent lower compared
to the same quarter a year earlier
Private commercial orders in the twelve months to June 2002 were one per
cent higher compared to the previous twelve months. Orders in the second
quarter of 2002 were two per cent lower compared to the previous period,
but were eight per cent higher than in the same period a year earlier.
Private industrial orders in the twelve months to June 2002 fell by 16
per cent compared with the previous twelve months. Orders in the second
quarter of 2002 were three per cent higher than in the previous period,
but were 23 per cent lower compared to the same quarter a year earlier.
Misunderstandings
threaten Constructionline, says LGTF
Misunderstandings on how Constructionline works have caused "barriers
and a slower uptake", a Local Government Task Force report states.
Headed by Manchester City Council, and using feedback from 14 local authorities
and social landlords, the report listed a host of obstacles that the government-backed
prequalification register faces.
The list includes: a resistance to change among local authorities in preference
of their own in-house systems; failure by clients and registered firms
to provide updated information to the initiative, which compromised the
quality of data available to other users; early IT complexities and a
lack of clarity in marketing materials as well as the compatibility problems
of client procurement management systems.
On the positive side, the report said that Constructionline had the potential
to make "many of millions of pounds" savings for public sector
construction.
In one example, the report quotes a county council saving £200,000
on a £60m construction programme by "partially" using
Constructionline.
Although the report claims that many of the problems have been rectified since
the reduction in registration time from six weeks to five, it recommended
an improvement of electronic access to give firms 30 days' written notice
to update information and issue regular reminders, market training services
to the client and to review work categories and specialism definitions
to improve consistency.
Chris Harris, director of Constructionline, said: "We have made good
progress over the last 12 months, but there is still ground to cover.
The Department of Trade & Industry will work hard with Constructionline
to take forward the suggestions."