For publication in Specify Magazine, November 2020
Important New Legislation Emerging:
The Grenfell Tower fire which happened in 2017 cast a major spotlight on the construction industry, and how quality is dealt with. The result of a subsequent inquiry by Dame Judith Hackitt has resulted in a new regulatory framework for multi-storey occupied buildings of 18m (six storeys) or more, including the creation of a Building Safety Regulator. The Chartered Institute of Building (CIOB) has undertaken a lot of good work in this area as the leading professional body for construction management and leadership. There is going to be new legislation which will affect design, construction, and the management of such buildings in occupation right across the UK. The timeline for the introduction is:
Autumn 2020: Passage through Parliament.
June or October 2021: Becomes law as Building Safety Act.
2021-2024: Implementation across the built environment sector.
From 2021 onwards: Secondary legislation.
One of the key issues highlighted in the inquiry’s report was the ‘lack of complete, accurate and up to date building information’ and the need for ‘robust record keeping, with a digital golden thread’ of key building information running through all phases of design, construction and occupation. I think the ‘golden thread’ concept makes a lot of sense and is going to become more prevalent in the approach to design and management of future projects. This planned new legislation has been relatively low profile to date. Expect to hear a lot more about it from next year.
Ongoing Implications of the Pandemic:
Apart from, “Could everyone please press their mute button”, fast becoming the most common phrase in 2020, and everyone regretting they never bought shares in Zoom(!), there are some notable changes:
Some companies are reporting that site productivity appears to have increased since work recommenced after the initial lock-down. Only necessary people are on site, there is minimal chat, roads are less busy, and overall, there seems to be a more focused approach to tasks. It will be interesting to see data on this as it emerges.
More companies seem to be focusing on digital marketing as face-to-face networking opportunities have almost disappeared for the time-being. Currently March 2021 is the earliest any non-virtual networking events are being planned for.
Interestingly I have noticed that Constructionline, the UK's leading procurement and supply chain management service, has planned the first fully virtual meet-the-buyer event which will take place on 19th November 2020. Usually this event is hosted in a large hotel with lots of excited buyers and sellers all coming together for what could be termed a kind of speed-dating session for construction clients and suppliers. They seem to have organised a very slick on-line version with breakout sessions and the ability to book a one-to-one with buyers. Perhaps it could be the new normal. Time will tell…
Working at home is growing in popularity. I know one Belfast-based firm which employs 80 staff. Currently on average no more than 10 staff are in their head office on any one day. Most people I have been speaking with are comfortable working from home but would ideally like a balance, such as 2-3 days in the office and the remainder of their week based at home. Perhaps house designers will have to revisit the concept of the standard three-bedroom semi to somehow incorporate a study/office area.
Brexit:
After four years of being the elephant in the corner of the room, the subject of ‘Brexit’ is rapidly ascending the agenda in construction company meetings. Since March immediate priorities focused on dealing with the implications of the pandemic, but in recent weeks there have been campaigns to generate awareness of the Northern Ireland Protocol coming into effect on 1st January 2021. Ultimately nobody is fully sure of the implications and how to prepare for it. My advice is:
Speak with your key supply chain members. There may be time and cost implications if needing to import products from European Union (EU) member states. For example, if you are carrying out a project and your mechanical subcontractor has to import an air-conditioning unit from Germany early next year then you may want to check into that to ensure the import process is understood and also to ensure there is time risk allowance in the Programme for any unexpected delays while people get familiar with the paperwork.
Material prices might rise. There is a commercial consideration that needs to be accounted for when tendering for upcoming projects in the immediate future.
If carrying our work in RoI, then engage with InterTradeIreland. They have a service offering to help advise businesses on how best to prepare. Also, keep an eye on their website for Brexit webinars which are useful.
There is going to be a change to VAT. It will be minor, but nonetheless, there will be a change. Watch out for news about this as Accounts Departments will need time to adjust.
Local Construction Management Finalists:
The shortlist for the CIOB Construction Manager of the Year Awards 2020 includes some local companies. This is effectively the Ballon d'Or awards for the construction industry. Well done to Theresa McErlean from Heron Bros and Brendan Conway from McAleer & Rushe. Winners to be announced on 25th November in London!
Congratulations Gilbert-Ash:
Gilbert-Ash, which has been responsible for several landmark buildings across the world, has been named in the annual Sunday Times PwC Top Track 250 league table for the first time. This is an impressive achievement in the same year as they moved into their new £5m headquarters in Belfast.
Farewell to John Armstrong:
After a successful premiership in charge of the Construction Employers Federation (CEF), John Armstrong retired at the end of October. John will be well remembered during his term for his professional approach and in particular his strong communication skills when dealing with the media. Best wishes to John for a happy retirement. Mark Spence has taken over as Managing Director. I have known Mark for many years; he is a diligent professional and fully understands the challenges facing construction companies particularly in relation to procurement. I have no doubt Mark will do a sterling job.
Image taken by K. Mitch Hodge.
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