CFA and Flooring Industry News
- Statement from Build UK to its members
- CFA welcomes new member in Barton le Clay, Bedfordshire.
- CFA welcomes new member in Billericay, Essex.
- Build UK update on Carillion liqidation
- CFA reacts to Carillion going in to liquidation
CFA welcomes new member in Billericay, Essex.
The CFA are pleased to welcome a new Associate Contractor member, Roseville Projects Ltd of Billericay, Essex.14th February 2018
Statement from Build UK to its members
The Build UK board have made the following statement:
The collapse of Carillion earlier this year, played out in front of us, shows the outcome when a major industry sector operates with a commercial model that is not fit for purpose. We have seen up close what happens when we have a combination of lowest price, inequitable transfer of contract risk, poor payment practices and inadequate governance.
Yet we can’t say it was unexpected or a huge surprise. We have all known, and talked about for years, the practices and behaviours that would deliver a successful and more profitable construction business environment. So why do we all continue to perpetuate the practices that inevitably lead to business failure?
Build UK believes that the lack of trust between parties throughout the whole construction supply chain drives the way we behave and if ever there was a catalyst for change this is it and if there was a time, it is now.
Throughout bull and bear markets the construction industry lurches from collaboration to conflict promoting inconsistent behaviours; in addition, the transactional nature of our projects and business relationships do nothing to engender long term trust.
The Build UK Board is clear that it can, and will, provide the strong, bold and incisive leadership that the construction industry so desperately needs. Bringing together the supply chain including Clients, Contractors, Specialist Contractors and now Professional Services, institutions and others, has created the opportunity to stop talking about what is right for one party or another but to do what is right for the whole industry and we need to lead the industry accordingly.
Build UK’s priorities of Improving Business Performance, Increasing Productivity and Recruiting,Training and Retaining Talent, identify that unless we address the Commercial Model we currently operate we will never truly be able to deliver an industry that is fit for purpose.
To show that we mean business, to demonstrate that working collectively will benefit all of us and to change the way construction services are both procured and provided, our focus over the coming year will be to deliver three outcomes that will make a difference.
- We have brought together a task force to identify the bespoke contractual clauses regularly introduced to the standard forms of contract that demand the impossible and perpetuate the inequitable transfer of risk. Together we intend to challenge the status quo
- We will publicly benchmark our Members on their payment performance helping clients, contractors and suppliers to make informed decisions about who they work with on their projects
- We will implement a roadmap to zero retentions addressing both the practice and its underlying drivers, changing payment practices for ever.
Improving our business performance and rewarding success with a sustainable level of profit will enable the industry to drive innovation, invest in future skills and apprenticeships and support the digital transformation we would all like to see.8th March 2018
The prize cannot be understated but it requires both leadership and the industry to be unified and united if we are to claim it. The Build UK board, on behalf of Build UK, represents 40% of the construction sector. It is prepared to lead the charge and by all of us working together we can change the industry from one of mediocrity to one which realises its potential to be truly world class.
CFA welcomes new member in Barton le Clay, Bedfordshire.
The CFA is pleased to welcome a new Contractor member. Bellwood Interiors of Barton le Clay in Bedfordshire.16th February 2018
Build UK update on Carillion liqidation
Following the liquidation of Carillion last month, please find below the latest update on the work that Build UK is doing to represent the industry to Government and support those directly affected.
Information for Members
- Additional Carillion companies have now been place into liquidation and an up to date list as of 30 January can be found in Build UK and CECA’s updated factsheet
- Companies who have not been paid for goods or services which have been supplied to the Carillion companies in liquidation should submit their claim to the Official Receiver. More information is available on the PwC website.
- The banks have published further advice for creditors and businesses should speak to their own bank in the first instance.
- DWP have published a range of information sheets for businesses affected by Carillion’s liquidation.
- CITB is continuing to support the apprentices affected and we encourage members to provide apprenticeship opportunities by contacting CITB.
Leading the Industry
- Suzannah Nichol continues to represent the industry on the Government’s Carillion Task Force. Build UK is calling on the Government and PwC to set out continuation plans for current projects and to commit to 30-day payment terms and zero retention throughout the supply chain on all existing and future projects.
- Build UK is working with both members and other organisations to discuss the industry’s next steps and in particular the long term sustainability of the industry’s business model. We would welcome thoughts from members and please get in touch with Laura Smith.
3rd February 2018
- Build UK continues to seek information regarding the impact of Carillion’s liquidation on specific projects and the supply chain to inform our conversations with Government as well as next steps. Please send any information confidentially to Laura Smith.
CFA reacts to Carillion going in to liquidation
As has been widely reported the construction giant Carillion has announced that they are entering in to liquidation.
CFA CEO – Richard Catt offered the following comment:
“Whilst still shocking, the news of Carillion’s demise will not be a major surprise to many CFA members who work for main contractors. Obviously their growing problems have been widely reported in the construction industry and national press, but as Rudi Klein of the SEC Group has pointed out in recent interviews, their basic business model has for a long time been fundamentally flawed.
The significance of their collapse will be far reaching and I am not only conscious of the 43,000 world wide and 20,000 UK based employees, but also the wider impact on their supply chain and the contract flooring industry. The extent of the impact on businesses and financial hardship caused to individuals through job losses will no doubt become apparent as time passes and is difficult to estimate at this stage. Low margins and use of subcontractors’ funds as cash flow and capital (in the form of late payment and withheld retention) will no doubt become publicly recognised as part of the problems that led to Carillion’s down-fall. It is important that even whilst still raw, we ensure that this element of this disastrous event is not lost on government as they complete their current consultation on retention.
The CFA would like to hear from any members prepared to share (in confidence) the financial impact on their businesses so that we can feedback to government a picture of the effect on the flooring sector.
In addition, we would like to offer our help, support and guidance, both directly, but also via our range of benefit providers in dealing with any issues that arise: this includes legal, contractual and business advice, where possible focussed in respect of Carillion projects and, for example, dealing with the liquidators. Some advice is already being published by the liquidators PwC through PwC’s dedicated website https://www.pwc.co.uk/carillion
The CFA will also be continuing its lobbying efforts to ensure that government recognise this as the very tip of a much larger iceberg that must be addressed by legislation to deal with late payment and unfairly held retention as soon as possible. Thus avoiding a much greater collapse of this potential main contractor house of cards."16th January 2018
The Full CFA News Archive
We have our full archive of previous news items available to view in date-order.