full findings - Greater Manchester Chamber of Commerce

#gmconstructionsummit
gmchamber.co.uk
THE FIRST GREATER MANCHESTER
CONSTRUCTION SUMMIT 2014
SUMMARY, CONCLUSIONS AND ACTIONS
Greater Manchester
Construction Summit 2014
INTRODUCTION
In organising this summit it was Greater Manchester Chamber of Commerce’s intention
that it would be an interactive event, with the overarching aim to inform the audience
about government strategy and developments in the industry and to gather feedback and
opinions from the construction industry to provide a Greater Manchester and North West
response to these trends and policy decisions. To this end, the agenda for the day was
built to allow audience feedback on the topics tackled by our keynote speakers and panels.
The speakers and panels for this event were defined by the Chamber and its partner
organisations, who were: RIBA, CIOB, ICE, ACE, University of Salford, Construction GTA,
North West Client Infrastructure Group, Constructing Excellence and the North West
Construction Hub.
The main focus of the summit was to provide a Greater Manchester and North West
construction sector response to the government’s “Construction 2025” Industrial strategy.
With this primary aim, the topics to be addressed by the keynote speakers and discussion
panels were selected by the summit steering group in conjunction with Greater Manchester
Chamber of Commerce’s Property and Construction Group. The Groups input was guided
by consultation with the Chamber ’s sector-based membership at networking lunches and
seminars over the course of the year.
The selection of topics for discussion was only part of the process. To fulfil the desired
outcome of providing a response to the industrial strategy Construction 2025, the groups
and individuals who provided feedback into the selection of topics, also prepared and
reviewed a series of questions, related to each subject area, to be posed to the audience,
to gather feedback and insight from those attending the summit.
The audience’s responses to these questions were gathered in two ways. Following
each panel session, time was given for round table discussion amongst delegates. These
discussions were facilitated by representatives of the Chamber and its partner organisations
who recorded the main points of their table’s discussions. Each of these sessions was
concluded by a series of polls, using an electronic voting platform, addressing the questions
as outlined above.
This document lays out the main points and conclusions from this audience feedback, and
outlines the Chamber ’s calls for action to help our city region’s construction sector reach
it’s potential.
Greater Manchester
Construction Summit 2014
ENDORSING PARTNERS
Connecting project delivery for the public sector
FOREWORD
The last few years have been particularly
tough for the construction sector. It Is
safe to say though that whilst the future
environment for construction is different
from that before the recession, it is
not without considerable challenges.
This sector is one of the most tangible
and obvious that there is. Everyone
notices construction work going on.
Your products are where we live, where
we work and how we get there too. With
recent announcements about more
investment, new infrastructure and new
models of local powers, the ability of
construction businesses to play a lead
role in this is more crucial than ever.
CHRIS FLETCHER,
DIRECTOR OF POLICY & COMMUNICATIONS
Greater Manchester
Construction Summit 2014
PIPELINES & THE DEMAND FOR CONSTRUCTION
AND INFRASTRUCTURE SUPPLY SERVICES
“ The ability to accurately identify, map and plan for future construction projects is
an incredibly powerful tool, that will enable us as a nation and industry to have the
confidence to ensure that we have the right materials and skills in the right place, at
the right time. This panel will discuss the need, challenges and benefits of developing
and supplying clear and accessible data about upcoming short, medium and long term
pipelines of work .”
CONCLUSIONS
1.
2.
3.
4.
5.
The industry believes that pipelines of work are potentially an important tool for the
sector. 74% of attendees believed that pipelines of future work would be very helpful
to them (figure 1).
Visibility of pipelines is seen as being too low. Only 55% of those present were aware
of where and how to access pipeline information
For pipelines to be useful:
• Confidence in their accuracy needs to be increased.
• They need to be attached to spending programmes with clear procurement routes.
The sector feels that some clients and contractors are too protective of their data for
any pipeline built from it to be trustworthy.
Delegates from SMEs expressed a fear that access to good quality pipeline
information currently has very high barriers with regards to visibility and cost.
2% 2%
DO YOU AGREE THAT PIPELINES OF
FUTURE WORK ARE HELPFUL TO YOU?
1. Very
2. Slightly
3. Not at all
4. Don’t know
74%
22%
2%
2%
22%
74%
FIGURE 1
Greater Manchester
Construction Summit 2014
THE CHAMBER CALLS ON THE GOVERNMENT TO:
1.
Ensure all major clients provide information on their planned capital programmes
to increase the scope and accuracy of existing investment pipelines such as
Infrastructure UK’s.
2. Work with major construction sector clients to raise the visibility of pipelines of work
and to ensure that costs for access are kept as low as possible.
3. Ensure that information provided to pipelines by clients and contractors is accurate
and up to date, with a commitment to spend.
4. Ensure that public sector projects included in pipelines:
• Have clear, transparent procurement routes
• Indicate the level of funding that has been secured for the project.
THE CHAMBER HAS / WILL:
•
•
•
•
Established “Construction Clubs” which are regular, spatially focused, meet the buyer
sessions, which increase the SME supply chain’s awareness of upcoming work, in five
boroughs of Greater Manchester. These are being expanded to cover the whole of
Greater Manchester.
Agreed a deal with Barbour ABI to access information on projects coming through
planning at a discounted rate for members.
Highlight and encourage best practice in the supply of pipeline data to the sector
and its supply chain.
Continue to produce and update the Construction Pipeline Analysis report, whilst
refining our methodology, promoting its adoption by other areas and offering
assistance to those who wish to produce their own spatially focused analysis.
Greater Manchester
Construction Summit 2014
TRAINING FOR THE FUTURE
“As perhaps the most common issue raised by businesses across the construction
industry, the shortage of skilled staff is an immediate problem, that is getting worse, with
real impacts on the sector ’s ability to deliver projects in a timely and economic manner.
With skills funding constrained, providers unsure of, or unable to provide the training
needed, and parents and students not seeing construction as a viable career, what can
the industry do to start to tackle this problem?”
CONCLUSIONS
1.
2.
3.
4.
5.
6.
Businesses in the sector acknowledge they need to do more to improve the image of
the industry to attract good quality young people to the industry.
Accessing funding for training is still a major challenge, which becomes greater as
the requirement for delivery moves down the tiers of the supply chain.
Existing apprenticeships frameworks aren't always what the industry requires
There is a belief that the demand for future skills required by the industry is
reasonably split across traditional skills, new methods of construction, soft skills and
organised skills (figure 2).
Some SMEs see training apprentices as an additional cost and feel that not enough
support is given by funding organisations.
There are concerns over the focus of training being too much on young people
coming into the industry and not enough on the up-skilling or retraining of current
staff.
THE CHAMBER CALLS ON THE GOVERNMENT TO:
1.
2.
3.
4.
5.
6.
Create more flexible funding for new entrants and existing employees, not limited
by age.
Implement training budgets on public sector contracts, to ensure that funding
allocated for the delivery of training is available for, and delivered to the company
that delivers the training.
Ensure that training being delivered is addressing the industry’s skills shortages
and make central funding allocations, such as city deals, conditional on the
completion of a regional Construction Pipeline Analysis.
Review the Shared Apprenticeship funding model to include non-CITB schemes
where appropriate.
Work with the CITB to ensure that grant funding for training is made easily
accessible for SMEs.
Lead a national campaign for careers education in construction (not limited to
CITB in scope companies).
Greater Manchester
Construction Summit 2014
THE CHAMBER HAS / WILL:
•
•
•
•
Continue to produce and refresh the Greater Manchester Pipeline analysis to better
understand the supply and demand of skills.
Lead the Construction Group Training Association (GTA) to ensure that training is
relevant to the needs of industry.
Create and work with cluster groups of employers to generate demand and procure
training in skills gap areas.
Continue to seek funding and run projects and campaigns to support skills for
businesses.
LOOKING TO THE FUTURE, WHAT DO YOU
ANTICIPATE THE KEY SKILLS REQUIRED
BY THE INDUSTRY WILL BE?
21%
1. A continued demand for
traditional skills
2. New skills associated
with emerging construction
methods and specialities
3. Soft skills in BIM and data
management
4. Organisational and
co-ordinating skills
23%
23%
31%
25%
31%
21%
FIGURE 2
Greater Manchester
Construction Summit 2014
25%
INNOVATION AND THE CHANGING
FACE OF CONSTRUCTION
“The Government’s industrial strategy “Construction 2025” lays out challenging targets
for the reduction of carbon, cost and waste. Costs of materials are spiralling and foreign
competition is becoming increasingly fierce, making business as usual no longer an
option for the UK construction industry.
With the Manchester Town Hall Refurbishment Scheme demonstrating the region’s BIM
capabilities, the Graphene Institute showcasing our materials science credentials and
new methods such as Off Site Manufacturing being employed on sites across the region,
this panel will discuss if enough is being done to encourage and enable the adoption of
innovative practices by the region’s construction industry.”
CONCLUSIONS
1.
2.
3.
4.
5.
6.
Current procurement methods and client behaviour are a block on innovation and
change.
The resulting low margin industry is a poor set up for innovation.
Senior managers often do not understand innovation at the lower end of their
organisation with the result that opportunities are missed because they’re too slow
on the take up.
Change is not happening fast enough throughout the industry, with doubts that it is
truly adopting new methods and new digital technologies.
BIM is still not fully understood throughout the supply chain. Adoption of BIM is too
slow for any benefits to be felt at this point. 66% of the audience thought that the
2016 deadline for adoption of level 2 BIM was beneficial to the UK construction sector
but only 42% thought the same when it came to their own business (figure 3).
Attendees believe that the UK’s funding market is too risk averse to support
innovation in construction projects. 70% of attendees believed that UK’s funding
marketplace is too risk averse to support the use of new materials and methods.
DO YOU THINK THE 2016 BIM DEADLINE
IS A BENEFIT TO YOUR BUSINESS?
21%
1. Yes
2. No
3. Possibly
4. Don’t know
42%
21%
16%
21%
42%
16%
21%
FIGURE 3
Greater Manchester
Construction Summit 2014
THE CHAMBER CALLS ON THE GOVERNMENT TO:
1.
Continue to provide leadership and resource for BIM education for the sector, for
senior and existing staff as well as new entrants to the industry.
2. Collaborate with the Construction Industry Council (CIC) to produce a guide for
funders on the risk (reductions and operational) in the adopting of innovative
materials and methods in construction projects.
3. Encourage all public sector projects to adopt procurement practices that encourage
and reward collaboration and innovation by all the supply chain.
THE CHAMBER HAS / WILL:
•
•
•
•
Conduct research and engagement events into the level of BIM knowledge and
readiness of the GM Construction sector as part of a BIM specific campaign.
Work with the CIC and other, membership bodies to inform the GM construction
sector about BIM, and other areas of innovation in the sector.
Work with partners to develop apprenticeship modules and other training methods to
raise the level of necessary skills for the adoption of BIM.
Represent our member ’s views and concerns about the impact of changes to the
Government.
Greater Manchester
Construction Summit 2014
BEST PRACTICE IN PROCUREMENT
- HOW IS THE MONEY BEING SPENT?
“Traditional procurement practices are often cited as a serious drain on valuable
resources by the construction industry and as a major barrier to entry by SMEs. This
panel will discuss the work that has been undertaken to identify where problems arise
in the process, some of the actions that are being taken to try to address them, and
what more needs to be done to ensure that the construction marketplace is open and
accessible to all, and that procured projects can be delivered on budget.”
CONCLUSIONS
1.
2.
3.
4.
5.
There is a general feeling in the industry that many procurement processes exclude
SMEs with the perception that the winners in the process are often predetermined.
51% of respondents felt that they were only sometimes able to compete for public
work because of the procurement methods used, with 9% saying never (figure 4).
There is too much variation across procurement practices, between the public and
private sector and within both.
Social Value provisions, such as use of local supply chain and prompt payment
commitments are not being sufficiently enforced.
There needs to be greater scope for dialogue between clients, all levels of the
construction sector and framework providers to ensure best practice is shared and
the best conditions for innovation are fostered.
New methods of procurement are adding to confusion and complexity in the
procurement landscape.
DO YOU THINK PUBLIC METHODS ALLOW
YOUR BUSINESS TO TENDER FOR PUBLIC
CONTRACTS?
1. Always
2. Most of the time
3. Sometimes
4. Never
14%
26%
51%
9%
9%
14%
51%
26%
FIGURE 4
Greater Manchester
Construction Summit 2014
THE CHAMBER CALLS ON THE GOVERNMENT TO:
1.
Ensure that all public sector procurement projects adopt PAS 91 for their PQQs and
tendering processes.
2. Establish a central database for the construction supply chain and mandate its use in
the identification of potential suppliers for all public sector projects, abolishing the
need for non-bespoke parts of PQQs.
3. Revisit the Social Value Act, providing greater detail and strengthening the language
on whole project value considerations.
4. Facilitate greater communication between the construction sector and public sector
procurers, through the establishment of regional co-ordinating groups.
THE CHAMBER WILL / HAS:
•
•
•
Held meet the buyer events for major public procurement projects and established
regular Construction Club events to facilitate early engagement for clients and
contractors with the Greater Manchester supply chain.
Deliver training and upskilling workshops on environmental policies and tendering
best practice.
Facilitate sharing of best practice using the Construction GTA client board and
contractors’ council.
Greater Manchester
Construction Summit 2014
CONSTRUCTION AS AN ENGINE FOR GROWTH
“Greater Manchester Chamber of Commerce’s ‘Construction Pipeline Analysis 2014’ has
identified £9.5bn of work in the Greater Manchester region alone. This panel will be
assessing and discussing the impact of the issues that have been examined during the
day, examining how these can and should be addressed by government and the industry
and formulating the headline messages for the summit.”
CONCLUSIONS
1.
2.
3.
4.
5.
6.
Despite positive economic indicators there is still a level of uncertainty in the market
place.
Delays in the planning system are damaging to confidence with uncertainty on
timescales for decisions damaging business cases for projects.
The funding marketplace outside London is still slow moving.
There are increasingly chronic shortages in skilled staff and materials, with the price
of securing both rising.
The public’s unflattering perception of the UK construction industry is a hindrance
to attracting and retaining skilled staff. 52% of attendees believe that the sector ’s
reputation with the people of Britain was poor or very bad, and a further 38% think it
is no better than indifferent.
The Government does not do enough to support the UK construction industry
82% of the audience believe that the Government is not doing enough to support the
construction industry (figure 5).
IS THE GOVERNMENT DOING ENOUGH
TO SUPPORT THE INDUSTRY?
1. Yes
2. No
18%
18%
82%
82%
FIGURE 5
Greater Manchester
Construction Summit 2014
THE CHAMBER CALLS ON THE GOVERNMENT TO:
1.
Include jobs created in the construction phase of projects in judging RGF and Growth
Deal bids.
2. Recognise the size and economic contribution of construction to the country’s
economy by creating a Secretary of State for Construction.
THE CHAMBER HAS / WILL:
•
•
Bring together interested parties to hold an annual construction summit to provide
the sector with a forum to speak to government policy.
Continue to investigate and take advantage of funding opportunities to address the
needs and concerns of the sector.
Greater Manchester
Construction Summit 2014
ACKNOWLEDGEMENTS
NAME
_
TITLE
_
COMPANY
_
Adam Jenkinson-Graham
Design Consultant
Adam Jenkinson-Graham
Alan Butler
Regional Director
ICE
Alan Couzens
Head of Infrastructure
Infrastructure UK
Performance and Reporting
Alison Watson
Managing Director
Class of Your Own
Allan Milne
Head of Work Based Learning
Trinity Business Training
Andrew Ruffler
Regional Director
RIBA
Andrew Stephenson
AMP 6 Programme Manager
United Utilities
Bankole Awuzie
Research Consultant
University of Salford
Baroness Beverley Hughes
Strategic Policy Adviser
GMCC
Cal Bailey
Sustainability Director
NG Bailey
Callum Tucket
Group Director Finance and
Laing O'Rourke
Commerce
Carol Bartrum
Head of Employment Engagement
GMCC
Cath Green
Chief Executive
First Choice Homes
Chris Fletcher
Director of Policy and
Oldham
Communications
GMCC
Chris Taylor
Business Skills Adviser
GMCC
Christian Spence
Head of Business Intelligence
GMCC
Clive Memmott
Chief Executive
GMCC
Dale Sinclair
Director of Technical Practice
Aecom
David Williams
Director
Turner and Townsend
Diane Elbert-Morgan
Business Development Manager
GMCC
Fady Farag
PhD Candidate
University of Salford
Gary Wintersgill
Managing Director of Keir
Kier
Construction (Northern)
Gerry Taylor
Project Co-ordinator Construction
GMCC
Graham Wardle
Director
Wardle Associates
Graham Wilson
Managing Director
Parker Wilson Consulting
Hazel Yorke
Branch Manager North West
CIOB
Helen Hatcher
Project Manager
Manchester City Council
Ian Powell
Head of Business Development
Pinnington Limited
James Flannery
Director of Community
Fusion 21
Regeneration
James Wates CBE
Chairman
Wates
Jamie Moorhead
Head of Research
Barbour ABI
Janine Richardson
Business Skills Adviser
GMCC
Jason Underwood
Senior Lecturer in BIM
University of Salford
Jill Bancroft
Director
Brown and Bancroft
Jo Preihs
Digital Social Media Manager
GMCC
Jocelyne Underwood
Construction Membership Manager
GMCC
John Ashcroft
Chief Economist
GMCC
Greater Manchester
Construction Summit 2014
NAME
_
TITLE
_
COMPANY
_
John Atkins
Property Director
Manchester Airport Group
John Finlay
Framework Manager
North West Construction Hub
John Lorimer
Director
JLO Innovation Limited
John Marland
Project Management Director
Bruntwood
Katherine Eaton
Campaign Manager
GMCC
Lauren McGee
Business Development Manager
GMCC
Lisa Wroe
Event Manager
GMCC
Liz Everett
New Business and Client
Seddons
Relations
Matthew Kershaw
Regional Manager
GMCC
Michael Dall
Construction Economist
Barbour ABI
Mike Gibson
Director and Owner
Connectivity Associates Limited
Mike Mason
Finance Director
GMCC
Mike Potts
PhD Student
United Utilities / University of
Nancy Mcguire
Partner - Construction Law
Addleshaw Goddard
Neil Sachdev
Non Executive Director
Intu Properties
Neil Smith
Managing Director
Kinetic PLC
Noel Ruane
Owner
Freemont Limited
Paul Smith
Head of Communications
GMCC
Pauline Pawlykiwskyj
Event Manager
GMCC
Peter Foster
Head of Digital Manufacturing
Premier Interlink
Salford
Implementation
Peter Groves
Construction Programme
Cabinet Office
Manager
Peter Hansford
Chief Construction Advisor
BIS
Peter Malone
Business Development Manager
Wates
Peter McDermott
Professor of Construction
University of Salford
Management
Phil Cusack
Business Development Director
Capita
Raj Singh
Business Skills Adviser
GMCC
Rebecca Pedler
Head of Marketing
Barbour ABI
Roy Stewart
BID Manager
Barnes Construction (UK)
Sarah Brisco-Davies
Added Value Co-ordinator
North West Construction Hub
Shelagh McNerney
Director
Shelagh McNerney Limited
Simon Kirby
Chief Executive
HS2 Limited
Sir Richard Leese
Leader
Manchester City Council
Stacey Bryne
Regional Manager
GMCC
Stephen R Hodder MBE
Owner
Hodder and Partners
Steve Burne
Managing Director
AEW Architects
Steve Friend
Chief Executive
SCS Building
Steve Housden
Sector Strategy Manager
CITB
Steve Nathaniel
Account Manager
GMCC
Stewart Grant
Partner
Pozzoni LLP
Susan Witterick
Director
DBX Acoustics
Victoria Kerr
Event Co-ordinator
GMCC
Greater Manchester
Construction Summit 2014
Greater Manchester
Construction Summit 2014