Last edited 11 Jul 2018

Construction Sector Deal launch

Construction sector deal.jpg

On 5 July 2018, the government published the delayed Construction Sector Deal, originally trailed in the Autumn budget on 22 November 2017, but then delayed following the collapse of Carillion.

The deal, which the government claim is worth £420 million, is intended to transform construction through the use of innovative technologies, increasing productivity and delivering new homes faster and with less disruption. Described as a ‘bytes and mortar revolution', it will promote the use of digital design and offsite manufacturing to transform construction and provide 1.5 million new homes by 2022. It will also support the Clean Growth Grand Challenge to halve the energy use of new builds by 2030.

Launched by Business and Energy Secretary Greg Clark in a speech to the Northern Powerhouse Summit in Newcastle the deal brings together the construction, manufacturing, energy and digital sectors to improve productivity and accelerate the shift to safer, healthier and more affordable buildings that use less energy.

The Construction Sector Deal is intended to:

These goals will be met by focusing on 3 strategic areas:

  • Deploying digital techniques in all phases of design to deliver better, more certain results.
  • Adopting offsite manufacturing technologies to minimise waste, inefficiencies and delays and to enable production to run in parallel to site preparation.
  • A focus on whole-life asset performance rather than the costs of construction.

Following the collapse of Carillion in January 2018, the deal also includes a commitment to agree proposals to improve contractual and payment practices and performance in the industry.

In relation to procuring for the whole-life performance of built assets, it calls for a standard methodology, used across the sector, supported by a single body of knowledge; '..a shared digital asset that is accessible to all and enables the rapid sharing of expertise and best practice'.

The Construction Leadership Council (CLC) will develop and publish a delivery plan, will review progress at its quarterly meetings and will publish an annual report on the progress made. Sub-groups will be convened to oversee the delivery of key commitments.

Greg Clark said; “Major infrastructure projects like HS2 and the commitment to deliver 1.5 million homes by 2022 mean that we need a construction sector that can drive innovation, delivering homes and infrastructure quicker. As buildings account for around 30% of total emissions, we also want to ensure that we are at the global forefront in designing and building smart, energy efficient and affordable homes and buildings through the Clean Growth Grand Challenge, saving families money on their bills."

International Trade Secretary Dr Liam Fox said; “With the global infrastructure market estimated to be worth $57 trillion by 2030, the opportunities are clearly there for our companies. That is why DIT, through our network of HM Trade Commissioners, Officials and GREAT.gov.uk, will work to identify these opportunities and provide advice to overseas businesses who may want to invest in the UK.”

Andrew Wolstenholme, Co-Chair of the CLC said; “Our industry builds the schools to educate the young, the hospitals to care for the sick, the police stations to keep us safe, the roads and railways that get us to work, the power stations that keep us warm and the homes we return to each day. We are an industry that must be at the forefront of the UK’s drive for future growth and prosperity – and I’m confident that this deal will help to achieve that.”

Suzannah Nichol, Chief Executive of Build UK said; "Today’s announcement sets out a bright vision for the future of UK construction along with a plan that the industry can, and should, all get behind."

Marie-Claude Hemming, Director of External Affairs for the Civil Engineering Contractors Association (CECA) said; "...it is now up to industry and Government to ensure words are met with action, to ensure our shared goal of a reformed construction sector becomes a concrete reality.”

Julia Evans, Chief Executive at BSRIA, said; "BSRIA has said time and time again that more quality housing is needed throughout the length and breadth of the UK. And reducing the cost of retrofitting existing buildings to make them more efficient and more sustainable is at the heart of BSRIA’s continuing strategy."

You can access the Construction Sector Deal here: https://www.gov.uk/government/publications/construction-sector-deal/construction-sector-deal

You can read the speech by Business Secretary Greg Clark at the Northern Powerhouse Business Summit here: https://www.gov.uk/government/speeches/reimagining-the-buildings-of-the-future

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