Master Builder Magazine: August-September 2022

Master Builder Magazine: August-September 2022

AUGUST-SEPTEMBER 2022 £4.25

THE MAGAZINE OF THE FEDERATION OF MASTER BUILDERS

PROMOTING MEMBERS’ VOICES Why building relationships with Government Ministers matters – even at a time of political turbulence

CHARITABLE WORK SY Homes delivers a fresh façade for local organisation Shrewsbury Ark

CASH FLOW CONSIDERATIONS Tips on how to keep your business running even in tough times

PASSIVHAUS POTENTIAL The rigorous standard will deliver highly energy efficient homes

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Contents AUGUST/SEPTEMBER 2022 Industry update

Features

25 Trained to succeed 2021 Master Builder Apprentice of the Year Luke Emery shares his professional progress 26 Making your voice heard The FMB aims to influence the Government on matters affecting its members 28 Active pursuit of Passivhaus Building to Passivhaus Standard – or close to it – is not for the faint-hearted 30 Scarce skills FMB members share their views on how to solve the skills shortage

7 Welcome Identifying challenges and creating solutions 8 News The latest headlines from industry news 13 The FMB’s viewpoint Issues affecting the sector 15 Innovation insights A look at new products and services

17

Your FMB

24

Spotlight

41 The FMB round-up

News, updates and announcements

17 All aboard the ark

44 Risky business

FMB member SY Homes volunteered its expertise to support a Shrewsbury charity

Learn about insurance for high-risk trades 45 The Master Builder Awards are returning Nominations for the 2023 Master Builder Awards open in autumn 46 Important regulatory updates Keeping you informed of changes to the Building Regulations and planning system

19 Investment priorities

FMB member Dale Chadwick shares tips on how builders can invest in their future

Business support

45

48 Member update

20 Steady flow

A list of new and expelled members 50 Important changes at the FMB News from recent UK Area Board elections 51 2022 National AGM Notice Details of the FMB’s 81st National AGM 52 Member news An update from across the regions and devolved nations

Ensuring adequate cash flow will help your business survive tough economic periods 22 Balancing expectations Keeping clients and family members happy at the same time is no easy task 24 Health and safety update The latest news and updates on health and safety to keep you safe on site

Master Builder has been carefully prepared but articles are published without responsibility on the part of the publishers or authors for loss occasioned to any person acting or refraining from action as a result of any view, information or advice included therin. Articles published in Master Builder do not necessarily reflect the opinions of the Federation of Master Builders Ltd nor can the Federation of Master Builders Ltd, the publishers or authors accept any responsibility for any claims made by advertisers.

Editorial Editor Bradford Keen [email protected] Head of marketing Danika Ferguson Lead designer David Twardawa Picture editor Jessica Marsh Publishing director Joanna Marsh

Advertising Advertising enquiries Daniel Goodwin +44 (0)20 7880 6206 [email protected]

@fmbuilders

Published by Redactive Publishing Ltd Fora, 9 Dallington Street, London EC1V 0LN www.redactive.co.uk

Production Production manager Aysha Miah-Edwards +44 (0)20 7880 6241 [email protected]

/FederationofMasterBuilders

FEDERATION OF MASTER BUILDERS David Croft House 25 Ely Place London EC1N 6TD Tel: 020 7025 2900 www.fmb.org.uk

@federationofmasterbuilders

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Welcome BRIAN BERRY

I t’s summer time at last, and we’ve been able to host our first National Conference since the start of the pandemic. We’ll provide a more detailed report with photos in our next edition, but in the meantime, please see page 41 for a brief summary. Ask any member about the key issues affecting our industry and I can guarantee that skills, pricing and materials will be at the top of the list. There are an estimated 42,000 vacancies in construction with notable shortages in bricklaying, plastering and joinery. Trying to get more people into our industry is a big challenge despite the fantastic opportunities a career in construction can offer. Someone who is a powerful ambassador for our industry is Luke Emery, our national Apprentice of the Year award winner at the 2021 Master Builder Awards. On page 25 Luke provides an update on his career to date. Prioritising the green agenda Looking to the future, the way we build is inevitably going to change as the industry responds to the UK Government’s green agenda. There are understandable frustrations about the additional complexities this imposes, not least on builders having to get to grips with the changes to Building Regulations for energy efficiency. The flip side, of course, is that there are new opportunities. More members are speaking more frequently about retrofit as a growing market, which has been helped by rocketing energy prices. Passivhaus is one such opportunity and on pages 28-29, we speak to members about their experiences with building according to – or very close to – the Passivhaus Standard. Strengthening your voice The FMB was founded in 1941 by a group of builders who felt excluded from the building contracts to repair London after the Blitz of World War II. They recognised the need

Trying to get more people into our industry is a big challenge despite the fantastic opportunities a career in construction can offer

to band together to have a stronger voice to speak to the London councils to secure contracts for the rebuilding work. Having a strong voice is needed as much now as it was then, which is why the FMB has a proud record of lobbying at a national level. On pages 26-27, we explore why lobbying is an important part of what we do at the FMB. One of the notable successes is that we have the ear of the Government, even in turbulent political times. Earlier this year the Construction Minister, Lee Rowley MP, visited one of our member’s sites and heard firsthand about the challenges our industry is facing. It was also an opportunity to highlight the desperate need for a licensing system for construction. We know most of you support licensing but trying to get this message to land with the Government is challenging, despite last year’s Private Member’s Bill tabled by Conservative MP Mark Garnier who called for the licensing of domestic building companies. Nevertheless, our fight continues! Remembering a legacy I want to take this opportunity to mark the sad passing of our former National President Geoff Snow OBE. Geoff was an FMB supporter through and through. He was, until earlier this year, Chair of the FMB Audit & Risk Committee. He will be greatly missed, not least by me. You can read more about Geoff’s legacy on page 52. Finally, I want to remind

you about the FMB’s national Annual General Meeting in September, and to encourage you all to vote for the new National Vice President and on some small changes to the governance. Until then, happy holidays!

BRIAN BERRY, Chief Executive of the FMB

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INDUSTRY UPDATE NEWS News

CONSTRUCTION INDUSTRY NEWS

Red diesel ban

T he Department for Business, Energy & Industrial Strategy has given £6.7 million in grants to 17 projects working on solutions to replace the need for red diesel in construction operations. This comes in the wake of the fuel ban in April this year. The grants have been awarded for the first phase of a competition, with a total funding pot of £40 million, to help organisations develop low-carbon fuel and system alternatives to red diesel. Most recently, £400,000 was given to technology firm ULEMCo Ltd, which is working with Skanska and the Buildings Research Establishment (BRE), to build a combustion engine

that runs on hydrogen fuel so on-site construction equipment can operate more cost-effectively. Grants were also awarded to: BAM Nuttall and Motive Fuels – £357,000 for development of a hydrogen refuelling station to decarbonise BAM’s fleet; and Bramble Energy’s Gen-ZE – £460,000 for a fuel cell generator. This competition, which forms part of a larger £1 billion Net Zero Innovation Portfolio (NZIP), has £32.5 million available in grants for phase two, with up to £15 million per project. Applications open at the beginning of 2023.

Rising fuel bills for fl eets

The cost of fuel could increase for construction fleets by at least 50% due to the scrapped red diesel rebate, according to RAM Tracking, a vehicle tracking, dashcam and fleet management company. On 1 April, legislation changed, meaning construction companies can no longer buy cheaper diesel. The rebate had been used to offset fuel duty, worth nearly 58 pence per litre, helping construction and agricultural businesses save money. Since the start of the year, the average price of a litre of normal diesel has increased by 28.21 pence a litre. Running construction vehicles will be much more expensive, RAM Tracking said. Using a Hitachi ZX210 21-ton excavator with a fuel tank capacity of 400 litres, for example, will now cost roughly £700 to fill, whereas it cost around £360 to fill before the rebate was revoked. Nick McClellan, Managing Director at RAM Tracking, said: “At a time of high costs of living and rising energy prices, it’s worth changing driver behaviour to minimise burning precious fuel, such as avoiding idling for too long, keeping tyres pumped up, not going too fast or too slow, avoiding braking aggressively and better route optimisation.”

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NEWS IN NUMBERS

£746 The average weekly income in construction rose to its highest amount in March (thanks in part to the 5% BATJIC increase). Source: ONS

BATJIC secures 5% boost for wage rates

T he FMB has been closely involved with the Building and Allied Trades Joint Industrial Council (BATJIC) annual negotiations on the National Conditions of Employment and Wage Rates, which form the Working Rule Agreement. The Working Rule Agreement 2022-2023 came into effect on Monday 20 June 2022. Here’s what you need to know. Wages: There has been a 5% increase in wages across the board – including for all apprentices and trainees: The Adult General Operative rate is up 51 pence per hour to £10.73; For skilled wage rates, S/NVQ2 increases by 58 pence per hour to £12.10 and S/NVQ3 increases by 67 pence per hour to £14.04; and All other rates, including young adult operatives, all apprentices and trainees, and all hourly skills rates will also rise by 5% this year. There is also a 5.5% increase for daily fare and lodging allowance. Holidays: BATJIC holiday entitlement is 22 days holiday plus all bank and public holidays. Holiday pay for all, usually 30 days, is to be calculated at the normal earnings level, including all PAYE earnings, in accordance with,

and as defined by, relevant case law and the Working Time Regulations 1998. Seven of the 22 working days of annual leave are attached to the Christmas holiday period, to be taken alongside the three public holidays. BATJIC is recommending the Christmas shutdown period in 2022-23 begins at the end of work on Friday 23 December 2022, with a return on Monday 9 January 2023. Pensions: Under provisions in the Pensions Act 2011, employers are required to enrol certain members of their workforce (eligible jobholders, who are aged between 22 and State Pension age, working in the UK and earning more than £833 a month) into a workplace pension scheme, unless the worker is already in a qualifying scheme. The minimum employer contribution under pensions auto- enrolment rules is 3% of pensionable pay between £6,240 and £50,000. The BATJIC pension scheme was wound up in 2012, and is now managed by Phoenix Life Limited. If you have any enquiries about a BATJIC Pension then please call

11,000 The growth in the number of self-employed construction workers between December 2021 and March 2022 (from 234,000 to 245,000). Source: ONS

119,000 The number of female construction workers, surpassing pre-pandemic levels of 118,000. Source: ONS

Phoenix Life Limited on 0345 075 0755. For more information, visit tinyurl.com/BATJIC

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INDUSTRY UPDATE NEWS

Custom and self build leads on sustainability and MMC Custom and self-builders are leading the way by adopting sustainability practices and Modern Methods of Construction (MMC), according to the National Custom and Self Build Association’s (NaCSBA’s) 2022 Custom and

Construction set to boost sustainability credentials

T he UK construction Construction in 2022 and Beyond . Key findings include: 48% of businesses think their company’s carbon footprint will decrease in 2022; 66% of companies have carbon neutral targets in place; Most businesses feel positive about the prospects for construction in the UK over the next 12 months; and Three quarters of businesses said recruitment was the biggest challenge facing the UK construction sector this year. sector is set to improve on sustainability in 2022, according to the BDO report,

Paul Fenner, partner and Head of Construction at BDO LLP, said that while it’s promising to see many adopt solid Environmental, Social and Governance (ESG) practices, some smaller subcontractors “simply don’t have the ability to meet the substantial costs that are associated with ESG”. Fenner concluded: “At present, many construction companies are still in survival mode and not thinking about the wider implications of ESG, but it’s vitally important that the industry does find ways and means to invest in an ESG strategy over the next three to five years to reduce carbon emissions and help save the planet.”

Self Build Market Report . The report reveals that:

One in two builders included a sustainable heat source pump in their project; and More than half used MMC to build.

People want greater choice in the homes they live in, which is why, according to

the report, this was the main reason for choosing an owner- commissioned house. The report also shows that 94% of prospective self- builders would not buy a speculatively built new home. Andrew Baddeley-Chappell, NaCSBA CEO, said: “This first ever NaCSBA annual Custom and Self Build Market Report is essential reading for all those keen to access quality insight, analysis and >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60

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