Employee health and welfare remains a huge issue for the construction industry – in fact, 81,000 workers suffered from work-related ill health in construction in 2020 alone, while a quarter of work-related ill health cases (26%) were due to mental health[1]. Faced with these staggering figures, Mark Wilkinson, Managing Director of Hillmont Associates, poses the question: are we approaching health and safety in the wrong way? And explores a new human-led approach that could provide the solution to a long-standing problem.
The emerging role of specialist contractors in the UK building industry presents its own distinct challenges. From scaffolding, groundworks and service connections, to electrical and mechanical work, glazing and asbestos removal, and much more, contractors are faced with a wide array of distinctive and varied safety challenges on any given day.
Despite its benefits, subcontracting can have an adverse influence on health and safety. By the very virtue of the brief periods spent on site by subcontractors, personnel have less familiarity with the inherent safety issues of site activities. While the fragmentation of the workforce can lead to inadequate communication and teamwork among contractors, as well as differences in safety cultures between main contractors and subcontractors on site.
Add to this the ‘payment-by-results’ model in which specialist contractors operate – which is often aided by the quick completion of tasks, resulting in subcontractors pushing themselves hard, working excessive hours, or side stepping safety where it impedes production[2] – and it is easy to see why the industry has such a poor track record when it comes to safety.
Building a better safety culture
There is a growing responsibility on specialist contractors, consequently, to go beyond compliance with regulatory requirements and proactively develop and implement measures that will create a positive cycle of change.
A shift in mindset from compliance, to truly understanding their workforce, including their unique personality traits, different communication styles and behavioural tendencies, can assist contractors in lessening the likelihood of incidents on site.
What’s more, productivity and teamwork can be enhanced through mutual understanding and appreciation of each other’s skills – a clear advantage for projects involving multiple contractors.
Beyond compliance
Despite major overhauls of HSE regulations, significant improvements in training revamps and shifting attitudes towards employee wellbeing, major incidents and accidents continue to plague UK construction sites. All this is to suggest that the majority of pitfalls in safety stem from the one constant in any project – the people.
Understanding this human element, and gaining a greater perception of the behavioural tendencies of employees, can aid contractors in discovering more about their team’s strengths and potential limiters. They can then leverage this knowledge to build better relationships, communicate more effectively and deliver superior performance, resulting in increased safety.
What many fail to realise, is the behavioural tendencies of workers can have a telling impact on why individuals may get hurt on site. To put this into context, an action oriented construction professional’s practical and decisive attitude may typically be a major strength for delivering projects on time and to a high standard. Nevertheless, such an individual could get hurt through impatience and hurrying without getting all the details of a job.
A highly interdependent manager, conversely – who is concerned with other employees and carries influence – could come to harm by jumping in to help a colleague, getting distracted by other people or possibly even being overconfident.
Armed with the right knowledge, organisations are able to coach individuals to understand them, avoid the potential risks they carry, and tailor training according to how different individuals process information to generate greater engagement with the safety culture.
The power of the PDI
As the industry seeks to reduce workplace incidents and check poor practices that may lead to injury, or worse fatalities, heightened self-awareness has become a core pillar of safety regimes. Intuitive Personality Diversity Indicator (PDI) systems and training programmes – such as Hillmont Associates’ E-Colors PDI – are designed to elevate performance and achieve common goals through better collaboration between teams.
For high-risk industries such as construction, PDI indicators are a key enabler for understanding the behavioural characteristics of employees, and following up with appropriate training to build better cultures of safety organisation-wide. This is accomplished through understanding how different personalities impact safety decisions and how to mitigate these incidences through training.
As more and more specialist contractors, particularly those in the high-risk construction industry, place an emphasis not only on health and safety, but also creating a better culture, PDI tools and the associated training will offer substantial benefits. Whether that is heightened awareness of leadership styles, excellent communication and engagement capabilities, or higher levels of inter-personal trust, they could offer the answer to the sector’s HSE challenges.
To find out more, visit: www.hillmontassociates.com
[1] https://www.hse.gov.uk/statistics/industry/construction.pdf
[2] https://core.ac.uk/download/pdf/222826256.pdf
Formwork, falsework and shoring specialist RMD Kwikform is being acquired by scaffolding giant Altrad in a deal reportedly worth more than £140m.
Midlands-based RMD employs more than 1300 people with operations in the UK, India, Australia and the UAE. It is part of the Interserve Group, has been involved in the construction of HS2, Crossrail, Battersea Power Station and Hinkley point.
Ian Hayes, chief executive of RMD said: “Altrad Group will support RMD’s growth strategy built on further investment into our products, services and geographic expansion, widening the platform for the renowned world-class engineering solutions we provide to our clients. Importantly, it will also lead to significant opportunities for our staff as part of a leading global industrial services group.”
Ran Oren, joint chief executive of Altrad Group said: “RMD will enhance our portfolio of products, in line with our strategy of the geographic, sector and product diversification.”
Altrad dominates the UK scaffolding sector after previous acquisitions including Cape, Hertel, Trad, BarOmix, Belle Group, Beaver 84, NSG, Generation and MTD. The acquisition of RMD is Altrad’s latest deal and comes after the group bought the Hire & Sales division of Actavo during the summer.
Lucy Pringle and Jonny Gribben at law firm Womble Bond Dickinson ask if a lack of haulage capacity causes you to be late in delivering orders, or failing to perform your contractual obligations completely, is it possible to rely on force majeure to avoid liability?
The current shortage of HGV drivers is well documented. A combination of Covid, Brexit and other factors has meant that there are simply not enough drivers to meet UK demand. The Road Haulage Association estimates that there is now a shortage of 100,000 drivers in the UK, and says that it will take 18 months to train 100,000 drivers. This lack of haulage capacity is putting intense pressure on some supply chains, with conditions predicted to worsen in the run up to Christmas. Is it possible to rely on force majeure to avoid liability?
A four step test
1.First, check whether you actually have a binding contract with a customer to supply goods. You may have binding ongoing supply commitments to some customers, whereas other customers simply place ad hoc orders from time to time (which you can accept or reject at your discretion). Prioritise servicing your binding contractual commitments, and consider declining ad hoc orders in order to manage your capacity to supply.
2.Where you have binding contracts, the next step is to understand whether those contracts contain fixed delivery/performance dates, or whether delivery/performance dates are estimates only. The latter is obviously preferable given the current difficulties. Consider changing your standard terms now to ensure that delivery/performance dates for all future orders are estimates only.
3. If you have a binding contract with firm delivery/performance dates, check whether that contract contains a force majeure clause and whether shortage of haulage availability falls within the scope of that clause. If it doesn’t, then you are unlikely to be entitled to any legal protection from customer claims arising from your late delivery or non-performance, because English law does not provide any default force majeure protection. The protection is either in the contract or it’s not.
4. Finally, even if a driver shortage falls within the contractual definition of a force majeure event, it must be the operative cause of the delay or non-performance (i.e. it must make it impossible not just more expensive to perform) before the clause can be relied upon.
Summary
A broadly drafted force majeure clause may capture haulage shortages, but a more tightly drafted force majeure clause is unlikely to. It is essential to read what the clause actually covers. If it is simply more expensive to obtain haulage services, then this is unlikely to class as force majeure. The legal doctrine of ‘frustration’ may assist you if contractual performance is impossible, but this is a high threshold and can rarely be relied upon.
If your suppliers are declaring force majeure to you, apply a similar four step test to rigorously check whether they are actually entitled to declare force majeure. It is often the case that businesses declare that a force majeure event has taken place without having the contractual right to do so, and simply rely on goodwill or lack of legal knowledge to avoid claims.
What should I do to protect my business?
A supply chain is only as strong as its weakest link, and there are weak links stitched through the supply chain at the present moment. This is a critical time to assess the adequacy of the force majeure clause in your standard terms to ensure maximum protection against current supply chain threats.
Sika’s modern methods of construction (MMC) team works with offsite manufacturing and assembly companies to look at how Sika products can be used as part of the process in this fast-growing sector.
Sika’s decision to create this team of experts in 2019 came at a time where offsite manufacturing was growing in popularity, as a result of its multiple benefits including improved quality control and reduced waste and speed of construction.
Now, an extended team of offsite manufacturing specialists has been selected to cover a breadth of skill and expertise. At the helm is Simon Griffiths, Head of Sales – Offsite Construction, and supporting him is Chris Meadows, National Sales Manager – Facades, Fenestration and Insulated Glass, Andrew Gillard, Business Unit Manager, David Fitzpatrick, Target Market Manager Industry Sealing and Bonding, Cheryl Douglas, Head of Marketing, Jean-Francois Guillet, Business Development Manager Modular Building, James Taylor, Technical Advisor/Key Account Manager Shipping & Offshore, Brian Doocey, Technical Manager and Oscar Larsson, Key Project Manager. The nine members from across Europe each bring their own personality and experience to the table.
Speaking of the news, Simon Griffiths from Sika said: “Offsite has grown steadily over the past few years. Its benefits are widely known and understood. We are at a point where we believe that the use of offsite will accelerate to meet the demands of many projects such as HIP. As a business, Sika has many products that can be used in offsite construction, both within production assembly lines and/or application upon delivery to site, for a variety of purposes. To support the development of this important market sector, we have expanded our specialist team of experts.”
Sika offers the industry’s widest product ranges for sealing and bonding, roofing, building finishing, passive fire protection, damping and reinforcing, concrete, flooring, waterproofing and wall finishes for interior and exterior applications, and bathroom pod waterproofing and tiling systems.
Sika has an extensive R&D capability and global reach. This means the company has a proven track record of working across international markets, many of which are on the pulse of offsite manufacturing’s innovations. Sika’s MMC division is utilising global experience to guide offsite manufacturing companies towards unlocking new potentials. The division can offer a customised approach for modular manufacturers, especially where construction solutions need an industrial approach.
With extensive technical expertise and solid practical experience on every continent, in many climates and environments, Sika is a highly qualified, reliable partner for all manner of manufacturing and construction needs.
For more information, contact Simon Griffiths from our MMC division on 07803 667225.
www.sika.co.uk
A leading sustainability authority, Bureau Veritas, is encouraging nationwide developers to pay close attention to the the London Plan 2021 which includes strict sustainability performance metrics, or risk being left behind in meeting future planning requirements.
The advice comes as the London Plan is hailed as a blueprint for how the Government is set to manage planning policies moving forward. The outlined sustainability performance metrics are aligned to the Government Construction Playbook and Procurement Policy Notices (PPN), which increase the expectation and focus on sustainability credentials.
The London Plan 2021 was introduced in March 2021 and sets out a clear development strategy for Greater London for the coming years. Sustainability is at the heart of the plan, which introduces ‘zero carbon’ standards, with a requirement for buildings to be constructed in line with ‘circular economy’ principles.
Hailing the focus on sustainability as a step in the right direction, Bureau Veritas, which has helped some of the world’s leading organisations to build robust and structured sustainability strategies, is calling on developers to follow London’s example and factor sustainability standards into their developments now, ahead of almost certain planning reform.
Julie-Anna Smith, South & West Europe Sustainability Services Leader at Bureau Veritas, said: “The Government’s strict sustainability performance metrics as part of the London Plan are almost certainly a sign of things to come. As the Plan forms part of the statutory development plan for London, which means the overall planning system in London will operating in a more joined-up way than ever before, it is likely to serve as an accelerator for planning reform across England – resulting in the need for more sustainable practices and products, paving the way for future generations to thrive.”
The sustainability requirements outlined within the London Plan are closely aligned with Bureau Veritas’ sustainability areas of specialism, with a focus on improving air quality, decreasing environmental noise and reducing carbon emissions.
Julie-Anna continues: “The Government Construction Playbook and subsequent PPNs clearly outline the expectation around sustainable development when it comes to the London Plan. Whilst it may seem like a simple task to meet some of these expectations, all too often we find businesses struggling to demonstrate a long-term commitment to sustainability which can ensure they are well positioned to seize future opportunities and manage risks associated with a changing climate and the growing expectation to conduct business responsibly.
“We urge developers and suppliers to get ahead of the game now when it comes to managing their sustainability practices and to consider appointing an independent specialist that can support businesses in meeting the enhanced sustainability PPN requirements as part of the London Plan, but also to meet longer-term requirements.”
www.bureauveritas.co.uk.
Demand for UK trades has boomed since the end of the initial lockdown in July 2020. Plumbers, electricians, building-maintenance firms and other trades making up the UK’s 1.3-million-business field-service sector have seen their workloads increase by 70 per cent year on year, according to a new report published today by field service management software provider BigChange.
BigChange’s State of the Field Service Sector report reveals that three-quarters of trades businesses saw demand increase in the year to July 2021. Almost one in five (18 per cent) took on over double the work they did in the 12-month period before. BigChange’s research indicates that demand for Plumbing & Heating, Plant Hire and Drainage increased fastest.
Despite soaring turnovers (up 79 per cent on average) and average price increases of 47 per cent, fewer than half of trades businesses (48 per cent) said they were profitable in the year to July 2021.
Debts have increased by 117 per cent among the worst performers in the sector, and one-in-eight firms fear they will fail within a year as Covid complications, compliance issues and surging costs continue to hit hard.
Most businesses surveyed (81 per cent) said that the pandemic had continued to impact their finances negatively in the last 12 months. 67 per cent said their margins had been squeezed by the cost of complying with new regulations, and rising prices for materials, fuel and labour are cited as ongoing problems by more than 70 per cent of respondents.
Richard Warley, BigChange CEO, comments: “While demand for the trades has boomed since the first lockdown, this backbone of the economy is not as strong as it might look. Only half of firms are profiting from this extra work. There’s a big difference between growing and growing stronger.”
“Many trades businesses have seen profit margins hit by a perfect storm of Covid, compliance and rising costs. One-in-eight fear they won’t last another year, partly because they’ve taken on more debt and racked up colossal overtime bills meeting customer demand.
“The strong, profitable businesses are succeeding by working smarter to stay in control of their operations, keeping a lid on costs, and making their teams more productive. They are using technology to improve management oversight, plan better and automate processes, and improving communication and response times as part of efforts to make the customer experience their new source of competitive advantage.”
One year after a transformative €44.4M investment, the upgrade of MEDITE SMARTPLY’s OSB factory in County Waterford is on schedule—despite the anticipated setbacks of the ongoing COVID-19 pandemic.
The investment was procured to upgrade the drying factory, which had been in continuous operation since 1996, and is now on its way to delivering a world class drying, energy and screen system that will enhance resource efficiency and asset reliability. It will also greatly increase factory capacity.
The first announcement of the investment came at a critical time for MEDITE SMARTPLY, part of Coillte, Ireland’s largest commercial forestry and land solutions company, as it looked to scale up production levels to meet the continual strong demand for its products. This demand has not diminished throughout 2020 and the first half of 2021, leading progress on factory improvements to be driven at full speed.
The improved output, as a result of the project, will increase product availability even further, enabling the company to support existing customer positions and to develop new market sectors and opportunities as part of the company’s strategy and growth plan.
“We are delighted that our work on this has progressed so well so far. It is a credit to our invaluable team that everyone has pulled together so efficiently amidst the uncertainty of the pandemic, to ensure we maintained our schedule.
“Every day we get closer to delivering our best in class timber panel products to even more customers, while providing a welcome economic boost to the Waterford region too,” comments Chris King, Managing Director at MEDITE SMARTPLY.
This was the second significant investment to be made in SMARTPLY in the last five years, with an injection of €59M into the company taking place in 2016.
More on MEDITE SMARTPLY: www.mdfosb.com
Output growth in construction has eased the recovery for the third month running according to the latest construction purchasing managers index (PMI). The September survey also revealed shortages of subcontractor, staff and materials, which are all causing rapid cost inflation.
September data revealed another growth slowdown in the construction sector, with output volumes rising to the smallest extent for eight months. This partly reflected softer demand conditions than the peak seen earlier in the summer. Survey respondents also cited disruptions on site from unavailable transport, a severe lack of materials and continued staff shortages.
Some firms noted that the unpredictable pricing environment had slowed clients’ decision-making on new orders and led to delays with contract awards.
At 52.6 in September, down from 55.2 in August, the headline seasonally adjusted IHS Markit/CIPS UK Construction PMI® Total Activity Index dropped further below the 24-year high seen in June (66.3). The latest reading signalled only a moderate expansion of total construction output and the weakest speed of recovery for eight months.
Tim Moore, Director at IHS Markit, which compiles the survey said: “The volatile price and supply environment has started to hinder new business intakes as construction companies revised cost projections and some clients delayed decisions on contract awards. As a result, the latest survey data pointed to the worst month for order books since January’s lockdown.
“Shortages of building materials and a lack of transport capacity led to another rapid increase in purchase prices during September. There was also a considerable decline in the availability of sub-contractors, with survey respondents citing shortages of bricklayers, drivers, groundworkers, joiners, plumbers and many other skilled trades. Measured overall, prices charged by sub-contractors increased at the fastest rate since the survey began in April 1997.”
Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply, said: “The increases in shortages also affected project agreements with a sharp fall in new order growth, where customers hesitated to commit, uncertain about prices and the timing of completion. Over 60% of supply chain managers said their deliveries were taking longer and 78% were paying more for their goods as inflation remained stubbornly high.
“Good news for job seekers though as the demand for skilled labour remained unabated, and companies were left wanting more. Sub-contractors were unable to fill the widening gap of need as their availability shrank and prices charged accelerated to record levels. Unless stronger supply chain performance is nailed down along with headcount, we are heading towards a stagnant autumn because the sector is certainly not on an even footing at the moment.”
Meanwhile, the latest survey illustrated that construction firms remained highly upbeat about the business outlook. Just over half (51%) forecast rising output, while only 8% anticipate a decline. However, the degree of confidence was weaker than August amid some concerns that the supply chain crisis will hinder growth.
The labour shortages facing the UK’s construction industry are the result of a post-lockdown boom, according to a study of the current jobs market from specialist recruiter Randstad.
Randstad looked at changes in the ratios of vacancies to applications for jobs in the UK’s construction sector – using the volume of applications as a proxy for candidate volumes – across the UK’s construction workforce.
In the first half of 2020, Randstad said they had eight applications for every construction sector job advertised. During the first half of 2021, this ratio fell to five applications per job.
Randstad says that, while the number of applications for construction sector roles fell by 23 per cent, the number of vacancies rose by a greater degree – increasing by 39 per cent.
Other industries were found to be experiencing similar trends. The biggest change in the supply and demand was in engineering roles. In the first half of 2020, there were 17 applications per vacancy. A year later, there were only four applications for every role.
Adrian Smith, senior director of operations at Randstad UK said, “There are staff shortages across the west, including the UK. The construction industry is struggling to fill jobs in Ireland, of all places.
“So, we don’t think the labour shortages we are seeing in the UK are not, on the whole, being driven by a dearth of EU labour following Brexit. The UK’s settlement scheme for residents of the EU had, by the end of May, received more than 5.6 million applications and at that point the programme still had a month to go. The ‘Brexodus’ hasn’t played out as we feared.
“Essentially, this is not primarily about a constriction in the supply of labour. Workers are back in power because of the success of the vaccine rollout and the removal of lockdown restrictions – and the resulting economic bounceback – even with construction output having fallen recently.”
Randstad says that agile employers need to adapt to secure their first choice of candidate.
Mr Smith continued: “The end of furlough at the end of the month should unlock a chunk of the labour supply but it won’t solve the labour shortage problems overnight.
“The first thing to do is reevaluate your asking salaries and hourly rates. Construction employers are not, somehow, immune from these market forces. At the start of the summer, we were seeing the average pay packet for construction workers up by 14 per cent compared to the same time last year.
“Second, if you find the right person, move fast – much faster than you would have done two years ago. There are so many organisations looking to hire right now that, if you move slowly, you will miss out on the best people.
“Third, consider making more use of contractors and temporary staff, rather than focussing solely on permanent hires. While the costs aren’t all that different, casting the net wider can help you secure a candidate who really fits the bill.”
“Lastly, if you are hiring office workers, rather than people on site, use remote working to widen your candidate pool. Employers who demand people come into the office are now missing out on candidates to a degree that didn’t happen before the pandemic. This change should go hand in hand with a re-examination of your wider benefits package in line with your competitors. Top of the list for workers at the moment is more flexibility.”
With six weeks to go until COP26, engineering alliance Actuate UK has issued a stark message to world leaders gathering in Glasgow, urging them to tackle the climate crisis now “before it is too late”.
The body, which represents eight of the UK’s major engineering services trade bodies, says the construction industry is committed to helping in the fight against global catastrophe – but leaders must have “the courage and vision” to make it happen. And it has repeated a call from its recent manifesto for the widespread rollout of renewables technology toreduce the carbon impact of buildings across the globe.
Leaders will meet for the UN Climate Change Conference – also known as COP26 – from October 31 to November 12, to discuss how to hit climate change targets, including securing net zero by mid-century and keeping global warming to below 1.5 degrees.
Fiona Hodgson, CEO of SNIPEF, echoed the call for immediate action, saying it was vital for leaders to commit to action now. She said: “There is no doubt that the construction industry has the skills and innovation at its fingertips – we just need those in power to have the courage to make the green revolution a reality and agree to roll out such innovation on a mass scale.
Alan Wilson, Managing Director of electrotechnical trade association SELECT, said any potential action should follow the net zero pledges contained in the Actuate UK manifesto, which was published earlier this year. He said: “We have already called for efficient heating and cooling in buildings, improved indoor air quality and a fast vehicle charging infrastructure – all things that are within reach and can bring about change if we are bold enough to make them happen.
“Actuate UK itself is committed to making a difference, with our members pledging to see net zero targets achieved in existing buildings through retrofit activities, and to assist with the uptake of low-carbon technologies across government, industry and operators.
“In addition, we are committed to demonstrating how carbon emissions from the materials, construction and the use of a building over its entire life, including its demolition and disposal, will comprehensively affect standards, quality, education and training. Such examples can, and should, be followed by others around the globe so we can make a difference together.”
Chris Yates, CEO of the Federation of Environmental Trade Associations, another leading Actuate UK member, said it was also vital for the industry to make its views known to bring about change. He added: “All of us who work in the engineering services have a duty to make our voice heard and repeat the message that the technology and techniques that can make a difference to tomorrow are already here and need to be rolled out today.
“Without these voices being heard, and our leaders making real change at COP26, we will just continue to sleepwalk into disaster and leave a legacy that no one will be able to repair.”
Formed in February 2021, Actuate UK bridges the gap between products, installation and end use. It demands decision makers to listen to the professionals whose skills turn vision into a practical reality for everyone.
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