By Samson Sahmland-Bowling So far, the first half of 2020 has felt like six years, not six months. Every new month seems to bring with it global challenges and the threat of coronavirus still looms. The knock-on effect of Covid-19 has been significant, with the FTSE100 losing nearly a quarter of its value in late March ─ the biggest drop in history. The global economic slowdown has dramatically increased unemployment and experts predict negative growth over the year. What’s more, a survey from McKinsey shows that 52% of respondents expect the state of the global economy to decline further over the next six months. However, while the road to recovery may be bumpy, the global economy will recover. Post-Covid, governments will be looking to rebuild their economies through targeted investment.  As a founder looking to launch or grow your business, timing will be essential. Launch at the right time with the right support and you stand to grow rapidly in the wake of the post-coronavirus frenzy. And the best way to position yourself to ride this wave is to begin working with governments now. Onboarding a national government as a customer or partner, however, can be a tricky and time-consuming process. Having forged some strong government connections in Zambia before the crisis, I have some experience as to what it takes to onboard a government.  Post-coronavirus, this close relationship with the Zambian government will help Open Energy Labs grow our educational programme across the country, helping the local economy to recover at the same time. Here are a few tips from my experience… 1. Develop good local contacts There seems to be a tendency of businesses from developed nations to assume that they have all the answers, technology, and other resources to solve challenges in other regions. This neo-colonial perspective often ends up alienating the local population and making the local government dependent on foreign business, investment and aid. Developing good local contacts at the outset of your business venture can help with both market penetration and product development. They will know what local resources are available, what solutions might work well for local people, and can steer your product design and marketing in the right direction. When starting Open Energy Labs, for example, we found that the key issue was powering remote rural areas. These areas are hard to reach, making installation and maintenance of energy infrastructure exceptionally difficult. Working with local contacts and the Zambian government, we developed an affordable educational kit that can be used to teach people how to build their own renewable energy resources. Not only will this help rapidly roll out energy infrastructure across rural Zambia, but it also empowers local people. One of the best ways of connecting with good local contacts is through local organisations. There are great organisations like JETS in Zambia and YSK in Kenya, for example, that promote young technologists.  These young and ambitious people, who already have connections to the government, are exactly the type of people you want on board. Try and get to one of the organisation’s exhibitions (often held in the summer months) to meet, greet and hire the top upcoming talent. 2. Match against local initiatives One of the primary reasons to onboard a government is their huge budgets. National initiatives are assigned large amounts of funding, even in developing regions, providing an excellent opportunity to the right company to grow. However, governments expect a return on their investment. Access to reliable sources of electricity, for example, improves the economy, health, education, and many other parts of life. Not only is it, therefore, very popular, but it will also positively impact on government funds and the efficacy of spending in other areas. By finding governments with initiatives in the same field as your business and aligning your product/solution to those initiatives will position your business as their ideal partner. The support you will receive from those governments, aside from financial, will be invaluable in helping you grow and provide a powerful ally in your development. 3. Use local businesses Whether North American, European or African, every government prefers companies to use in-country resources and talent.  Developing nations are particularly wary of relying on foreign resources, staff or investment as these things often end up extracting wealth from the country. Profit from resources disappears overseas, foreign staff spend most of their earnings in their home country, and dividends on investment are rarely reinvested. Utilising local businesses, however, not only helps keep profits within the local economy but it also ensures that products can be effectively built, used and repaired locally. This demonstrates that you take a long-term view of your business in the region and are committed to empowering the local community. 4. Train local people Longevity is key when it comes to government contracts. National development initiatives are rarely short-term projects and government departments will need to feel confident in both your ability and commitment to achieve long-term goals. Besides using local businesses wherever possible, another way to ensure longevity is to train local people to build/manage/maintain your business and products/services.  By employing local people, more profit is kept within the country, improving the local economy. They earn, spend and pay tax all within their own country, rather than offshoring the majority of their salaries. Training may also open up other avenues for funding. Since the late-1990s, governments around the world have realised the need to retrain people for more skilled, technical roles. As such, they will have budgets and initiatives dedicated to retraining the population that you may be able to tap into. The common thread that runs through all of these tips is simply: look for mutually beneficial opportunities.  While these opportunities may take more time and hard work to develop, the long-term benefits can be incredible. Supporting a nation to develop its own resources in an organic way by training and developing local talent is more than just a feel-good project ─ it’s also a savvy business strategy.

CHAS, the Health & Safety accreditation specialist, has signed an agreement with Checkatrade that will see the two organisations work together to help their trade members boost their accredited status and availability for work.  Checkatrade is one of the UK’s leading directories of recommended, vetted and monitored trade experts, while CHAS helps construction clients to find certified contractors.  The joint venture will enable Checkatrade members to secure discounted accreditation status through CHAS, helping them to compete for work that requires Health & Safety certification. In turn, CHAS members who pass Checkatrade’s robust 12-stage vetting process, will be offered an introductory discount on Checkatrade membership. Commenting on the announcement, Ian McKinnon, Managing Director, CHAS, says: “It has been a challenging period for the construction sector but this new partnership underlines our commitment to providing new opportunities for our members and helping them to recover and strengthen their businesses during this difficult time.”  Mike Fairman, CEO of Checkatrade, said “our business is committed to making it easier for trades to find work and grow their business. One aspect of that is easy and affordable access to work tenders where Health & Safety accreditation is a pre-condition. All members that gain accredited status will be able to carry the CHAS logo on their Checkatrade profile pages. They will also benefit from the support of Checkatrade’s reviews and vetting team, creating a portfolio of verified customer feedback that demonstrates the quality of their work. About CHAS: CHAS is the leading provider of risk prevention, compliance and supply chain management services for clients and contractors. Since 1997, CHAS (The Contractors Health and Safety Assessment Scheme) has been helping to improve health and safety standards across the UK and safeguard organisations from risk. CHAS is an authority and trusted advisor on health and safety compliance, responsible for setting industry benchmarks and providing the new Common Assessment Standards. CHAS’s aim is simple: To standardise and simplify health and safety assessment for contractors To support organisations in efficiently managing their supply chains To deliver a full suite of supply chain management tools. Find out more at: www.chas.co.uk About Checkatrade:  Checkatrade, founded in 1998, is one of the UK’s leading directories of reviewed, vetted and monitored Trade Experts.  Owned by Homeserve Plc, Checkatrade has over 38,000 trade members and boasts over 4 million customer reviews allowing potential new customers to find the perfect trade or service for them, sure in the knowledge of their pristine track-record and verified ability. Last year over 12 million people trusted Checkatrade to help them find a reputable tradesperson. The idea for Checkatrade was born in 1998 after a tornado hit the small West Sussex town of Selsey. Trades poured in from across the country, but not all proved to be reputable. A local businessman realised there was nowhere to check out the traders’ credentials and the company that became Checkatrade was formed. For more information on Checkatrade, please contact CheckatradeTeam@redconsultancy.com

The Construction Industry Coronavirus (CICV) Forum is providing greater visibility on what constitutes ‘essential work’ to prevent key workers being harassed and verbally abused during vital construction projects. The Forum’s members have reported an increasing number of tradespeople being intimidated and verbally abused by the public while carrying out legitimate projects in line with CICV Forum guidelines. One contractor said: “On one commercial job, our engineers were subjected to a barrage of abuse by residents and staff. Our guys were upset and didn’t want to be there, so in the end, the local authority had to put up posters explaining that we were carrying out essential work. It was the only way our engineers could be left alone to do the work. “Not all essential obvious work is obvious to the public, but that is no excuse for the behaviour that some of us in the construction industry are having to put up with.” To try and diffuse the situation, the Forum has produced a checklist of projects to help the public understand the range of work classified as ‘essential’. It also plans to offer on-site signage to help workers make it clear to the public they are carrying out essential work only. Kevin Stewart, Minister for Local Government, Housing and Planning, said such measures were essential to provide clarity and reduce tension between the wider public and workers. He said: “The general public may not be aware of the full range of projects that constitute ‘essential work’, but these are workers who are performing a vital role safely and responsibly. “At a time when the Scottish Government is asking people to remain in their homes it is even more important that these homes are watertight, safe and have essential working facilities, such as water, gas and electricity. “Builders and plumbers’ merchants are also needed to provide supplies for essential repair and maintenance, such as heating and hot water breakdowns, roofing repairs, and electrical and fire safety.” Mr Stewart added: “It is important that the public understand that there is still a need for essential works to be carried out in these challenging times and industry professionals should be able to complete repairs in safety, without fear of criticism and rebuke.” His words were echoed by John McKinney, secretary of Forum members the National Federation of Roofing Contractors, the Stone Federation and the Scottish Contractors Group, who said: “Essential construction work is not confined to building a major hospital for COVID-19, but we know that people might not be aware of this. “There are dozens of other construction works that are classed as essential to keep the fabric of Scotland intact. At the very least, homes need to be watertight and safe both inside and out for people to be able to live in them. That’s why the construction industry is working hard across Scotland to ensure people can stay at home during these times to protect the NHS. “Greater understanding is needed among the public to understand that the key workers carrying out such work aren’t flouting the rules – they are performing essential tasks and should be allowed to do so without fear of abuse.” To help the public, the Forum has now compiled a list of essential work that is permitted to be carried out, including: Removal of elements in danger of collapse, e.g. cladding Repair and construction of critical road and utility infrastructure Emergency call-out services, e.g. electrical, plumbing, glazing and roofing Making inhabited buildings safe and watertight, e.g. after storm damage Domestic repairs to ensure occupants’ safety and wellbeing, e.g. the elderly Repair and maintenance of essential buildings, e.g. fire and police stations Safe operation of faulty heating and water systems Essential inspections to prevent health outbreaks, e.g. legionnaires Supply of materials for these and other essential COVID-19 projects. In addition, the Forum is developing a series of free signage for contractors to use to make it clear that any work being carried out is essential. Designed to be printed out and inserted in van windows and properties, the read: “Key Worker: Carrying Out Essential Construction Work.” Andrew Renwick, Managing Director of Caltech Lifts, who represents Forum member the Lift and Escalator Industry Association, said it was vital that this new collateral was used responsibly. He said: “It is imperative that this material is only displayed and worn by individuals undertaking qualifying work, so employers should also issue employees with appropriate paperwork so that they can provide evidence if question by the police. “Anyone caught abusing this material should be dealt with and the employer spoken to by the authorities.” Set up in March, the CICV Forum has already played a major role in clarifying conflicting information for the sector and issuing practical guidance for companies, clients and employees. It has also established a series of influential sub-groups dealing with mission-critical aspects such as health and safety, skills and future planning.

The Building Engineering Services Association (BESA) has supported a plea to the government to instruct construction clients to release £4.5bn currently being withheld from contractors in the form or retention payments. The Association backed the request, which was included in a letter from the Construction Leadership Council (CLC) to the Prime Minister, in a bid to inject much needed cash into struggling construction supply chains. As well as the call to release retentions, the CLC also asked the government to consider suspending PAYE and CIS tax due to HMRC in April and May for construction and consultancy firms and workers, with no financial penalty. This would also help to relieve some of the immediate cash flow challenges being experienced across the sector, it said. It has also called for all Apprenticeship Levy payments to be cancelled for the duration of the Covid-19 crisis. BESA, which has been campaigning for reform of the retentions system for more than two decades, added that speed was now of the essence as many specialist contractors were facing a rapid fall in turnover this month. An online poll held during the Association’s daily Covid-19 update webinar revealed that 58% of firms who responded expect to invoice for just 25% or less of their usual monthly amounts at the end of April. Sharp reminder “The current crisis has provided a sharp reminder that cash is king in this industry,” said BESA chief executive David Frise. “Any measures that can get cash flowing more rapidly through supply chains will be crucial to ensure our sector can keep delivering on its promise to support essential services with vital building services.” Since the CLC letter arrived at 10 Downing Street, the Crown Commercial Service has updated its Procurement Policy Note 2/20 Supplier relief due to COVID-19 to suggest ways that public sector clients could improve cash flow through their supply chains. It says the release of retention money could be considered, but warned that it might expose clients to “inappropriate risks”. It does, however, encourage clients to set up Project Bank Accounts and says they should pay suppliers promptly. The CLC letter pointed out that the cash retentions routinely held against contractors can represent up to 5% of each regular payment. It acknowledged there would be some “strong opinions over this”, but were the government to direct all public sector bodies to release all retention monies held “this would inject cash at all levels of the construction supply chain”. “The construction industry also needs clear support and recognition from the government for the essential work that it is doing, and the role it is playing in supporting public services and keeping the economy functioning,” the letter added. BESA also urged banks to show greater sympathy to SME firms working across construction as they were finding it hard to access business loans despite striving to keep sites operating. Another BESA poll revealed that 97% of firms who had applied for Coronavirus Business Interruption Loans (CBILs) were still waiting for a response. “This goes to show that the process has yet to catch up with the demand,” said Mr Frise. The Association’s daily webinar also heard that the CBI had issued an upbeat assessment of the UK’s medium term economic prospects. It is predicting a V-shaped recession i.e. a steep decline followed by a rapid recovery in the second half of the year. It does not envisage a long haul recovery like the one that followed the financial crash of 2008/9. It also believes there are a number of long-term benefits on the horizon including rapid growth in digital working as a result of more people being forced to work this way during the Covid-19 outbreak and a boost to plans to decarbonise the economy thanks to many lessons learned during the crisis. The reputation of the business sector will also benefit thanks to the ability and willingness already demonstrated by many companies and individuals to step up and provide support to the NHS and other essential services, the CBI said. The subject of retentions and other business issues for contractors will be under discussion during a webinar hosted by BESA with the CLCs lead on supply chain and business models Ann Bentley this Wednesday (April 8) at 12 noon. For details go to: thebesa.com/covid19.

Today marks the beginning of a new streamlined structure of governance at RICS. In a world where trust is being eroded, our new boards will further enhance public trust by introducing more diverse and global expertise, alongside increased independent-led oversight of our standards and their enforcement. We believe these changes are further evidence that RICS and the profession is doing everything it can to live up to its 150-year-old Royal Charter to advance the public interest in all that it does. The governance changes are part of a package of reforms voted on by the profession in 2018 which aim to advance societal trust, positioning the body to draw more effectively on the leadership and strategic oversight required to shape a forward-looking agenda for the profession. A new Governing Council is announced today, and RICS welcomes the new professionals who have been elected with record turnout across 12 regions globally. Governing Council, RICS’ highest level governance body, also includes individuals bringing expertise from six strategic areas of the profession as well as the ambassadorial positions of RICS President, President-Elect and Senior Vice-President.  The governance modernisation has also established a new Standards and Regulation Board, with its Chair and the majority of its members being independent from the profession to provider greater confidence in our assurance regime. This Board will provide assurance across all RICS standards and how they are enforced globally.  Under the reforms, the previous Conduct and Appeals Committee has been renamed the RICS Regulatory Tribunal to better reflect its important role in holding the profession to account for operating to the highest standards that society would expect. Sean Tompkins, Chief Executive Officer at RICS commented: “These reforms, endorsed by the profession, directly respond to the need for us to evolve our governance structures to continue to retain high levels of public trust and confidence in our profession and in RICS as a global professional body. “Our profession is at the forefront of some of the biggest challenges facing the world and our next generations – from the need to consider climate change in all that we do, through to embracing digitisation, and responding to a rising population and the pressures this brings for our cities and natural resources. “The strategic oversight our governance bodies provide is critical to ensuring RICS can continue to deliver confidence and lead positive change in the built and natural environment. “I welcome all the new board members to our governance bodies from both within and outside of our profession. Their experience and leadership will be invaluable – both to the way we continue to qualify professionals, in ensuring we set and enforce the highest standards, as well as offering the thought leadership needed to tackle the major challenges that our next generations will face.”

In a statement issued on 9 December, the Construction Leadership Council (CLC) has confirmed its support for Build UK’s Roadmap to Zero Retentions and encouraged industry to implement the new minimum standards when using cash retentions. The CLC’s support marks another significant milestone for the roadmap, which sets out specific actions in a phased approach for the construction industry to achieve zero retentions. Recent milestones delivered as part of the roadmap include publication of the retention policies of major public sector clients in November to provide increased transparency. This followed publication of the Minimum Standards on Retentions in July which aim to reduce the existing challenges with cash retentions. The CLC has urged construction firms and clients to adopt the minimum standards, which incorporate and build on the CLC’s commitment to abolish cash retentions. FIS chief executive said: “It is encouraging to see a unified approach, but I want to see a foot on the gas here.  We’ve had enough of backstops and a backstop of 2025 is too far away, let’s rally and get this done by 2023.  Retentions are an archaic way to manage quality and no longer fit for purpose.  They undermine a positive culture and on balance I believe they contribute to the problem that they were designed to solve.  Sadly I think we all know that and truth be told, all they are is a hangover of credit issues within the sector.  So let’s get shot by 2023 at the latest, but also recognise that this is not the only place where the supply chain needs to improve in terms of payment.  We still do the variations dance at the end of virtually every contract and use delay tactics to avoid paying til the last possible moment (sometimes sadly a moment too late for some companies), these are the shackles that hold this great sector back and contribute to stress and tension in the supply chain” Andy Mitchell, Co-Chair of the CLC, said: “The CLC believes that adopting the minimum standards will enable the industry to make progress towards the objective of achieving zero cash retentions by 2025. It will demonstrate commitment to the supply chain, whilst allowing the industry and its clients to adapt and improve standards of quality. Therefore, the CLC urges firms within the industry and construction clients, in both the public and private sectors, to support the roadmap and adopt the minimum standards, as a pragmatic means of improving prompt and fair payment practices and helping to create a stronger and more sustainable industry.” Jo Fautley, Deputy Chief Executive of Build UK, said: “It is encouraging to receive the endorsement of the CLC for the work that we are doing to move towards zero retentions as part of our roadmap. Achieving zero retentions is a vital part of becoming a more collaborative and efficient sector, and our roadmap sets out practicable steps for the industry to implement as we move towards this goal.”

Research has revealed matching the cost of planned Palace of Westminster repairs could dramatically reduce the UK housing deficit. Data examined by property finance specialists Pure Commercial Finance revealed for £4 billion – the estimated cost of essential repairs in Westminster – over 40,000 new properties could be built, housing almost 121,000 people (three people/property). Government figures reveal 430,000 affordable homes have been built since 2010, but housing charity Shelter estimates a deficit of 3.2m homes and states there are around 320,000 homeless people in the UK – 170,000 in London alone. Using internal data, Pure Commercial Finance calculated that the average 3-bedroom home in the UK costs £99,842.75 to build, meaning the Houses of Parliament budget, if matched, could house over a third of the UK’s rough sleepers (37.5%), or 71% of the capital’s homeless. The chart below shows the number of cities that could be completely rebuilt with £4bn worth of government funding*. *Based on three people per household. Due to lower population sizes, you could rehome the below cities, under the same principles, almost four times over. City 2019 Population Winsford 30259 Pontypridd 30420 Wishaw 30510 Deal 30555 Beverley 30587 Burgess Hill 30635 Saint Neots 30811 Ruislip 31000 Caerphilly 31060 Aberdare 31135 Thornton-Cleveleys 31157 Rutherglen 31180 Spalding 31588 Barnstaple 31616 Chichester 31654 Ben Lloyd, Managing Director and Co-founder of Pure Commercial Finance, said: “As development finance specialists, we deal with professional developers every day and are well-aware of the demand for affordable housing across the UK and the influence Brexit is having on borrowing. “Although we would never suggest cancelling the refurbishment of such a prized national monument, we were shocked to see how matching the refurbishment budget could help towards solving the deficit. “We placed millions of pounds of commercial property finance last year and will continue to ease the affordability and process of building across the UK for the foreseeable.” Polly Neate, CEO of Shelter, stated: “It’s unforgivable that 320,000 people in Britain have been swept up by the housing crisis and now have no place to call home. These new figures show that homelessness is having a devastating impact on the lives of people right across the country.”

Design Council welcomes the interim report from the government’s Building Better, Building Beautiful Commission. The interim report saw Commissioners present a summary of key findings. Design Council is pleased the report reflects many of the positions submitted in its evidence to the government earlier this year. In particular the emphasis on: –       place making over house building –       community empowerment  –       the importance of sustainability and green infrastructure –       the importance of design skills amongst planners and decision makers –       the move towards a more inclusive approach involving the public earlier in in the planning process –       the importance of national quality standards Sarah Weir OBE, Design Council CEO:   “There is much to welcome in the Commission’s really bold and imaginative interim report. I am especially pleased to see a strong focus on true collaboration and much earlier community engagement, the emphasis on the value of holistic placemaking and the recognition that sustainability and green infrastructure needs to be at the heart of planning and design. The call for a greater emphasis on design skills in local authorities is particularly important and reflects our evidence to the Commission. Design Council is also ready and eager to play our role as national advisory body for Government, working closely with the Commission to help ensure consistently high standards of design nationally. This interim report has the clear potential to ensure an even wider impact can be felt across the country in the final report. We look forward to being a part of it.” As government’s advisor on design, Design Council provides independent, practical and direct support to local authorities, property developers and their consultant teams to help enhance the quality of the built environment. This comes in the form of design advice and guidance and includes design reviews and a design approach that enable a cross sector, systems approach to supporting better places to live.   As an authority in this field, Design Council have long argued that many new homes and neighbourhoods fail to meet the needs of their communities because design is not prioritised by planners and developers. In Design Council’s submitted evidence to the government’s Building Better, Building Beautiful Commission, we argued that design must be recognised as a golden thread running through the development and planning process, rather than being an afterthought.