President’s Column (February 2018)

The construction sector, government and the wider UK population are reeling following Carillion’s liquidation in January. But at the same time, nobody in the sector is that surprised that a large main contractor has gone under.

Government is working with trade associations like BCSA to make sure subcontractors are informed, and to determine the immediate next steps as this particular mess is mopped up. Clients are working with the liquidator to get construction jobs started again and subcontractors, including steelwork contractors, are ready to make sure that the cranes on building sites across the country are working once more.

The calls for reform in the construction sector are welcome, and I’ve written about these issues before. The solutions include rigorous enforcement of payment terms, getting rid of supply chain financing that can leave subcontractors out on a limb, and dealing with retentions once and for all. Continue Reading →

President’s Column (January 2018)

While the standard forms of construction contract – NEC and JCT – aren’t perfect, in my opinion they provide a pretty good balance for both main contractors and sub-contractors. And until the adversarial contracting model changes to something much more collaborative, they allow both parties to share project risk.

These contracts are also what’s been agreed by the construction sector as a whole. Together, representatives from all parts of the supply chain decide what stays, what goes and what needs to be added.

So it’s always galling to see clauses that have absolutely nothing to do with the project specification or risks specific to that job added to a sub-contract. These additions aren’t minor either. They can run on to hundreds of additional clauses, scattered throughout the contract, and can have significant consequences for a sub-contractor. Continue Reading →

Statement from The British Constructional Steelwork Association

The British Constructional Steelwork Association (BCSA) continues to assure the construction sector that the ongoing issues around UK steelmaking will not affect the structural steelwork sector’s delivery of current and future projects.

BCSA says that procuring constructional steelwork from a UK or Irish steelwork contractor is the best way to support UK steelmaking:

– UK and Irish steelwork contractors understand the government’s new procurement requirements for steel, and provide the clearest route for compliance

– Using a UK or Irish steelwork contractor adds additional value to the UK economy through the whole supply chain including the fabrication of the steelwork, and the supply of other products and services such as secondary steelwork, metal decking, protective coatings and cladding

– Overseas steelwork contractors are very unlikely to procure UK-made steel because of the additional time and cost

The UK and Ireland have an efficient steel distribution sector that services the structural steelwork sector well with a balance of UK and high quality imported steels.  UK and Irish steel distributors hold high levels of stock and a wide range of products for all construction and infrastructure end-uses. Continue Reading →

UK Steelwork Contractors have sufficient capacity to meet future demand

As the UK’s construction industry continues to grow, a new report from KPMG says that UK steelwork contractors have sufficient capacity to meet forecast demand for constructional steelwork, without the need for capital investment.

The KPMG report concludes that UK steelwork contractors hold latent capacity of between 205,000 and 406,000 tonnes.  This means that the UK’s constructional steelwork capacity lies between 1,142,000 and 1,343,000 tonnes against forecast demand for constructional steelwork of 1,050,000 tonnes in 2019.

Richard Threlfall, KPMG’s UK Head of Infrastructure, Building and Construction said ‘UK steelwork contractors hold latent capacity which will allow them to quickly increase production to meet the forecast rise in demand from the construction industry’.

The report concludes that the required increase in constructional steelwork output in the UK will be achieved through a combination of increasing shifts, use of agency staff, and fully utilising current production facilities, without the need for any capital investment. Continue Reading →