The government’s newly announced 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, 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 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.”
Alexi Ozioro, public affairs and policy manager for BESA, added, “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 knows 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 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.