CONSTRUCTION ALLIANCE NORTH EAST ISSUE 4 // WINTER 2020
CAN LAUNCHES INTELLIGENT PROCUREMENT CAMPAIGN
CONSTRUCTION ALLIANCE NORTHEAST (CAN) IS PROUD TO ANNOUNCE THE LAUNCH OF ITS CAMPAIGN TO PROMOTE INTELLIGENT PROCUREMENT.
Following a recent workshop With the ‘local agenda’ in clear view, • issues surrounding payment with its committee, CAN wants CAN is working relentlessly with regional terms, project bank accounts to clarify its position on what procurement bodies - recently we and retentions need resolving. intelligent procurement means reported on our success with NEPO – to encourage a greater focus on the talent While CAN undoubtedly has a and the benefits it would deliver which can be found within the North massive job on its hands to effect these for the region, if adopted. East construction industry first, without changes and deliver on its promise of the need to look beyond the region. ‘Constructing the Region’, if successful, CAN was formed after the recession the North East construction industry because many SME construction As one of its aims, CAN is promoting has a bright future ahead. companies had been badly affected the use of selected tender lists featuring by, for example, the use of single- local companies, as an alternative sourced frameworks, which excluded to single-sourced frameworks, and Poor payment practices are still many from tendering - either because is looking for strategic support from occurring each day throughout their turnover was too low, or because the leaders of local public and private the industry. they were unable to demonstrate organisations across the North East, enough similar projects. including their formal endorsement • 100 of the top construction firms As the leading body for SME contractors of intelligent procurement. take an average of 43 days to pay suppliers. in the North East, through intelligent CAN is keen to work with local procurement, CAN seeks to create a procurement bodies to better understand • 2,000 organisations signed up to the common-sense approach to tendering. their issues and together look at better Prompt Payment Code in September Its values relate to three aspects of ‘local’: and fairer ways of procuring construction 2018 – but many do not adhere to it. • local money being spent with projects in the region. • Carillion collapsed owing £2bn regional companies to ensure to suppliers, sub-contractors and There are other aspects to consider too: regional investment other short-term creditors. • the wider regional supply chain must • local companies being placed at • The average proportion of invoices also adopt this approach so that the the heart of supply chain strategies not paid to the terms originally right company is awarded the right to facilitate more sustainable stated is 28%. job - a horses for courses approach; employment opportunities - • The current retention system is particularly for young people • the use of local providers of weighted heavily in favour of those technical skills, services and holding retentions, while offering • local growth, which will follow products needs prioritising when regional productivity increases. little or no protection for those • more effective collaboration is to providing retentions. Local companies need more clarity be encouraged about future pipelines of work so that • the widespread adoption of digital they can feel confident about taking on technologies is to be embraced more trainees and apprentices who can • the development processes Free construction advice from be developed to become the managers Carney Consultancy - see page 4. of the future. and people re-evaluation and,
NCBF’s apprentice celebration lunch with member companies, Walter Thompson, Surgo, Classic Masonry, Historic Property Restorations Ltd, and MJ Phoenix – continued on page four.
CONSTRUCTING THE REGION CONSTRUCTION ALLIANCE NORTH EAST ISSUE 4 // WINTER 2020
In 2019, the North East England international industry shows such as Construction summit launched BIM Show Live 2020, the Universities, the INDUSTRY the regional construction strategy LEPs and mayors. The intention is to finalise for 2020–2025 with the aim of the draft, ready for launch before Easter. INSIGHT bringing together the views of How do you personally see the future industry leaders and experts from of the region’s construction industry the region to develop a plan for going forward? the sector that focuses on the WELCOME TO THE FIRST I believe that the future is very positive - but OF CAN’S INDUSTRY strengths and potential of our region we must work hard to make things happen. INSIGHT COLUMNS. whilst taking into consideration the challenges affecting the construction The industry is in a state of flux with - industry in the North East. issues such as the Grenfell enquiry and To kick it off we spoke with John the climate emergency demanding a root Nielsen, director of CK21 and Are you pleased with the progress that and branch review and taking priority Chair of Construction Industry has been made during 2019 in getting over everything else. Once this is over, Council in the North East (CIC) the workload will increase for all with LOCAL buy-in from the region to the regional to share his thoughts on the construction strategy? infrastructure around climate change, current construction situation housing, society needs - so a new way of working will be required. MPS in the region. In his role at CIC, The events held in Newcastle and John has been responsible for Stockton for the launch of the construction strategy saw a positive reaction from What impact do you hope the strategy managing the development of will have for the region and when BACK CAN considerable representation for the (l to r) Stuart Miller, Chi Onwurah MP, Ken Parkin the regional construction strategy should we start to see these changes (RCS). Here, he updates us on industry and there was a profound eagerness to ‘get things done’. come into effect? how the regional construction strategy is progressing. Feedback from the events and additional I hope the strategy brings a focal point discussions with the LEPs and Mayors for the regional construction industry. Prior to the general election, we were pleased to meet up with highlighted a common way forward and It will develop opportunities for fully both Ian Mearns and Chi Onwurah with our primary aim of found that the core priority is about issues combined and regionally strong proposals lobbying government for change in procurement practices. surrounding procurement, training and to be submitted for government and We are pleased to announce that both retained their seats in the environment. It was agreed by all that national construction industry initiatives. the new Parliament. Chi backed our ‘intelligent procurement’ we need a ‘one voice’ approach in order The One Voice objective will allow the agenda, while Ian has agreed to help with our plan to link to tackle this as a region. region to be seen as the large, positive, up Gateshead Council and Gateshead College to provide opportunities for full time apprentices, so we will maximise Can you outline the next stage in the job creating industry that we are. (l to r) Graham Cunningham, Gateshead the potential of these links to drive change. regional construction strategy journey? Construction is often at the forefront of College, Ian Mearns MP, Ken Parkin A small group of representatives from developments and I think we can show regional industry organisations including that more investment in the industry and CAN, NCBF, CENE, CIC and RIBA are acceptance from it on its responsibilities developing the draft strategy. This draft will can assist in the region moving forward be presented to major industry figures at positively and help create the world that John Nielsen (L) speaks at North our children have a right to. SUPPORTING THE REGION’S East Construction Summit in 2019 PROPERTY AND CONSTRUCTION SECTOR
CAN FORGES We met with the Council not long “It was great to meet with CAN IS PLEASED TO ANNOUNCE ITS after the plans were unveiled to Gateshead Council. We spoke SPONSORSHIP OF THE MET CLUB DURHAM LINKS WITH discuss how important it is for about the need for greater PROPERTY AND CONSTRUCTION LUNCH ON local firms to have a fair chance visibility of pipelines of work MONDAY 2ND MARCH AT RAMSIDE HALL. GATESHEAD at tendering for work. and the council recognised the benefits of engaging with the On the day, we will hear from Terry Collins We are delighted that Gateshead COUNCIL regional industry through us.” CEO of Durham County Council and Simon Henig, Council recognised the need to the leader of Durham County Council. use more local companies in their As the leading body for SME contractors in the North East, MOST READERS WILL BE AWARE procurement methods and are We hope you will join us by purchasing a OF GATESHEAD COUNCIL’S CAN is very much looking working with us to look at how ticket using the link below. £90M PLANS TO TRANSFORM this can be achieved. forward to working with GATESHEAD HIGH STREET Gateshead Council to provide Please see the link: AS PART OF ITS £1.5BILLION Speaking about the meeting, Ken support and to help them shape themetclub.co.uk/event/durham-property-and- MET Club September 2019 lunch in Gateshead INVESTMENT IN GATESHEAD. their procurement methods.” where CAN met with Chief Executive Parkin from the CAN committee said: construction-lunch/ for more information Sheena Ramsey (centre) and Peter Udall (right), both from Gateshead Council pictured above.
CONSTRUCTING THE REGION CONSTRUCTION ALLIANCE NORTH EAST ISSUE 4 // WINTER 2020
BURSARY SCHEME FOR MORE INFORMATION OR TO JOIN NORTHERN COUNTIES BUILDERS FEDERATION CELEBRATION (NCBF) PLEASE SEE THEIR WEBSITE WWW.NCBF.UK
(continued from page one)
In celebration of the success of Restoration Ltd, and MJ Phoenix “Since the recession, there its apprentice bursary scheme, NCBF, were in attendance as they all employ has been a severe decline in (Northern Counties Builders Federation) apprentices funded via the NCBF grant. the amount of SME businesses which is one of the driving forces training apprentices. behind CAN, came together with NCBF member companies have the chance to bid for funding to recruit an trainees and employers who have “NCBF decided to offer its benefited from the scheme. apprentice and could each receive up to £23k depending on the apprentice’s members the chance to bid Member companies of NCBF, Walter age and length of qualification. for apprentice bursaries, Thompson, Surgo Construction, which will help fund the Classic Masonry, Historic Property Ken Parkin, chair of NCBF, said: training of their apprentices.”
NORTH EAST BASED This new academy will incorporate CONSULTANCY a wide range of training, skills and development support including OFFERS FREE surveying, planning, street works, deep drainage areas, plant and CONSTRUCTION machinery training, general CLINIC construction apprenticeships and in house NVQ assessors. (l to r) Niall Crosby, Academy Carney Consultancy a North East Manager and Ken Parkin of CAN This will ensure that students will based health and safety consultancy receive certified qualifications in and training provider with a broad client base, has offered to provide CAN SUPPORTS civil engineering, with the aim of FREE* advice, on the first Friday of addressing the skills-gap in the industry. each month between 1pm-4pm to LOCAL CONSTRUCTION CAN’s Ken Parkin said: contractors and individuals at its ACADEMY North Shields office. Apprenticeships, “This is an excellent initiative health and safety, CITB grants and by Seymour Civil Engineering fire risk assessment are just some of WE ARE PROUD TO BE to help provide much needed the topics covered. SUPPORTING SEYMOUR CIVIL Event supported by CAN. ENGINEERING AT THE OPENING ‘on site’ experience for people OF A NEW CIVIL ENGINEERING/ wanting to get into the industry CONSTRUCTION SKILLS which is a key aim of CAN.” ACADEMY IN HARTLEPOOL.
CAN is supporting Sunderland City Council at the ‘Let’s Talk Council Dave (L) & Angela Carney (centre) Housing’ event being held on 13th February for contractors, small builders pictured at the Constructing Excellence and local merchant suppliers. This event will allow networking and the in the North East 2019 awards. sharing of information for future proposals in relation to working together *If further instructions follow Carney on housing developments. Consultancy will make a charge agreeable to both parties. There will also be an opportunity to meet colleagues dealing with housing, planning, funding and infrastructure. Call 0191 296 3652 to check availability and location. Come and see us between 8:45am – 12:15 noon.
Construction Alliance Northeast is supported by the following four organisations: Construction Alliance Northeast c/o H25, The Avenues, 11th Avenue North, Team Valley, Gateshead, NE11 0NJ
e: [email protected] w: www.constructionalliancenortheast.co.uk