Just 35 firms have signed up to the Government’s payment charter nearly four years after it was launched to great fanfare as the solution to payment abuse in the supply chain.
The Construction Supply Chain Payment Charter initially committed firms to pay within 60 days on both private and public sector work.
From this month the payment pledge tightens up, shifting signatories to 30 days to meet the Government’s target of bringing construction into line with other industries.
But just three main contractors and two private clients have signed-up to date, with the last new firm committing to the payment pledge last August.
Now specialists subcontractors are writing the Charter off as a non-starter, despite it being pushed by the Construction Leadership Council and pan-industry trade body, Build UK.
Professor Rudi Klein, the CEO of the Specialist Engineering Contractors’ Group, said: “It’s a dismal failure and a distraction.
“I think the CLC and the Department of Business, Energy and Industry should make a statement about the failure of policy.”
He added: “The Charter has had no impact whatsoever. In fact while the Charter has been around payment periods have got worse stretching out to 50 days and 60 days.”
Main contractor supply chain finance initiatives have pushed official terms out even further. Carillion now has subcontractors on 120-day terms, with firms forced to pay for prompter payments.
Even Government departments on strict 30-day terms are failing to deliver with some cash-strapped NHS Trusts reported to be extending terms in the present climate.
One subcontractor told the Enquirer: “The Government came to power pledging to tackle payment abuse. Instead we got the Payment Charter which most of us thought was a cop out to avoid legislation.
“It’s time the Government looked at this again because a voluntary scheme just isn’t working.”
As we head into 2018, only one factor of the economy is certain – our uncertainty about the implications of Brexit is making a significant impact on the UK construction industry.
General optimism in the industry has been at its most subdued since mid-2013, while the latest estimates from the Office of National Statistics suggest that construction output contracted 0.5 per cent in third quarter of 2017, having shrunk by 0.3 per cent in the previous three months.
Duncan Brock of the Chartered Institute of Procurement and Supply said, “It appears that the continued fall in commercial activity was testament to Brexit-related uncertainty on the horizon and the sector’s fear about the direction of the UK economy as clients still hesitated to spend on bigger projects.”
Howard Archer of the EY Item Club concurred, “Extended lacklustre economic activity and heightened economic, political and Brexit uncertainties are clearly hampering the construction sector. It looks like it is going to be another challenging year for the sector.”
With market uncertainty comes a lack of job security for many workers. That’s why we’ve come up with a few strategies to help you improve your skillset in an increasingly competitive market.
Track down networking events
While Brexit might be causing uncertainty in a variety of sectors, construction businesses are always searching for upcoming talent.
If you’re a member of a trade association, chances are that association you’re affiliated with will host a number of trade shows and conferences throughout the year.
Use these events to meet new contacts and make your face known. Similarly, joining your local Chamber of Commerce could help you find out about companies in your local area which are searching for a trade professional.
When networking, don’t forget to bring well-presented business cards with you, and always dress professionally.
Get online
In a similar vein to networking events, popular networking site LinkedIn could be the most effective way to meet new contacts.
Make sure your profile outlines your past work experience, your key skills and your personal development while working in a trade. Once your profile is looking great, you’ll be able to connect with anyone in your industry and see a broad range of job opportunities online.
Train yourself
Completing your apprenticeship should never be the end of your training. If you’re constantly moving from one job to the next, you’ll need to continuously accumulate new skills throughout your career.
Gaining a distance learning degree from a university like Anglia Ruskin could be the ticket. A degree in management, for instance, could allow you to progress into a leadership role in construction, commanding a greater salary and increased job security.
Brexit negotiations may be showing a downturn in the fortunes of many industries, but they can also provide great opportunities for the worker who’s willing to network and learn new skills.
Have you got any training tips for the construction industry? Then let us know in the comments below.
Continue ReadingSHOUT IT FROM THE ROOFTOPS – CONSTRUCTION CAREERS ARE WORTH CELEBRATING
As an industry, we could be accused of focusing on the past rather than looking to the future – in fact, this is a condition that the country suffers from as a whole, and one that can stifle progress. Ultimately, positive, forward thinking, and innovation will attract fresh blood to our industry. But we must learn from our experiences and select important lessons for ourselves and the next generation, as my reality was very different.
I stumbled into this sector very much by accident, as many do. After leaving school, I found myself a summer job with a housebuilder as a joiner’s labourer. This helped me through my college years, and I then moved into the equipment hire industry, and construction products sales, where I first gained real perspective on how job sites operated – and how specifications had a big influence on the construction of a building. From there, I began an adventure into aluminium systems, fenestration and the building envelope.
The journey into roofing had a familiar feel, then managing a commercial specification team was exciting, and a real challenge as I again was able to influence construction in a tangible way. Joining Sika has really provided a wider opportunity, the company enabled me to move from a regional role, to a national role, and I’m now responsible for a business unit of over £60 million, three branded organisations – Sika Sarnafil, Sika Liquid Plastics and Sika-Trocal – and a team of over 70.
Today, the construction landscape looks very different. There’s a greater focus on Health & Safety, more challenging site restrictions, and a real focus on safe working. Specifications are ever more tested, but we continue to learn and improve. Sustainability, product innovation, logistics, and disposal of waste, have all developed massively. We have a lot to celebrate and share. Training has come on leaps and bounds, making a real contribution to strengthening the sector. We are more aware than ever of how we approach construction and what our roles and responsibilities are.
Now I realise that project success, business success and the success of the industry as a whole, is dependent on more than the physical bricks and mortar, it is the people that make the difference. Throughout the years I’ve been lucky to work with some great characters, who invested in my career, and me as an individual, provided great coaching and gave me opportunity to grow. It seems natural that we can now do the same for others.
A key focus for me is people development. We talk every day about our teams, where they are in their evolution, what projects are their focuses and how we can provide better support for our employees.
Recently, we had the opportunity to contribute at a college careers open day, where one of our team who had progressed in the last few years, told his story. This inspired a number of students, all of whom hadn’t necessarily considered the breadth of roles that the construction industry offers. We were overwhelmed at the interest, and quickly made the decision to move forward.
On the back of this, and stimulated by the Apprenticeship Levy, I am overjoyed that we will be welcoming two new apprentices to the Sika Roofing family this year.
These young people will join in a general business administration role, and work across all areas for the rest of this year. We will see where their strengths take them, with operations, sales and marketing, and technical services, all offering great opportunities for development. Working in construction really does allow you to ‘choose your own adventure’ and work to your skills and potential. There is even the chance of international roles, a very exciting opportunity.
Our apprentices will benefit from a sponsor, a coach, and a long term plan to integrate them into our business culture, and see what the industry is about. Sika’s group values provide a real spirit of entrepreneurship, opportunity and progression.
It’s clear that society and technology have changed younger people’s career choices. The perception of the construction industry and the long term opportunities are different than they were – sometimes negative and occasionally, non-existent. As a career choice from a young age, there is less focus on the traditional jobs, and the skills attached, which is one of the contributing factors to our skills shortage.
We’re not going to be able to rely on people ‘falling’ into the industry like we used to – the deficit is too large. Our focus must be to bring young people through our business – actively promoting and educating about the opportunities open to them.
If I could give our new apprentices one piece of advice, it is to be open. When I started out all those years ago, I wish I’d know how important it is to listen, to invest in yourself, and have a plan. Also, to take opportunity when it’s presented and forge relationships. I look forward to the new energy they will bring to the business, and call for more manufacturers to take action in telling the positive stories from our industry and developing the stars of tomorrow – we have so much to offer young people and they in turn to offer us.
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