Build UK was launched on 1 September 2015 following the merger of UK Contractors Group (UKCG) and the National Specialist Contractors’ Council (NSCC) and it has prioritised a number of long-standing industry issues such as fair payment to improve the delivery of projects and drive growth.
Bringing together 27 of the industry’s largest main contractors and 40 leading trade associations, including STA, which collectively represent 11,500 Specialist Contractors, Build UK provides a single voice for the whole of the contracting supply chain with the potential to transform the sector. By collectively agreeing and implementing best practice there is an opportunity to change behaviours across the industry which will benefit both the client and the sector as a whole.
Current payment practices within the industry are holding back the businesses of both main and specialist contractors. The fact that all parts of the supply chain recognised the need for a full and frank discussion on the issue of payment was one of the reasons for setting up Build UK.
A dedicated Payment Group has been set up with both main and specialist contractor representatives and a number of outcomes were unanimously supported by all Build UK members at the first contractor and trade association forum meetings in October. These include Build UK supporting the principles of the Construction Supply Chain Payment Charter, which specifies payment terms of 30 days by 2018 and no cash retention by 2025, and benchmarking its members on their payment performance when new statutory reporting requirements come into force in 2016.
“Experience has shown that tackling a fundamental issue, such as payment, in isolation makes progress difficult, says Build UK Chief Executive Suzannah Nichol MBE. “We are bringing together the contracting supply chain to consider what best payment practice looks like and both contractor and trade association members fully support Build UK exploring appropriate business models to ensure cash flows throughout the supply chain. The discussions so far have been lively but refreshing and honest and I truly believe that by working together we can, and will, make substantial progress on the issue of payment. This will enable the industry to improve productivity and deliver growth across the economy.”
The Department for Business, Innovation and Skills (BIS) has recently confirmed that it will be undertaking a review of the practice of retentions in construction and Build UK and its members will be contributing to the review which is part of a wider review of the effectiveness of the changes to the Construction Act made in 2011.
More information on Build UK and the five initial priority issues it has identified, including Fair Payment, can be found at: www.builduk.org
