CHAS highlights ten issues that will affect construction supply chains in 2022.
1: The Building Safety Bill
The Building Safety Bill, which is currently in progress through Parliament, will modify the way some structures are built, maintained, and made safe. It includes regulatory reforms on fire safety and the quality of construction products as well as a developer levy. Anyone involved with the design, construction and management of higher-risk buildings would be affected.
The Bill is expected to receive Royal Assent between April and June 2022, with the provisions taking effect in stages. The HSE will oversee the enforcement of the new building safety regime and has already started pressing the affected parties such as designers to get them prepared for these changes. For more information, you can subscribe to the HSE’s free BSR eBulletin here.
2: New framework for Environmental protection
In November 2021, the Environment Bill was passed as the Environment Act 2021, establishing a post-Brexit framework for environmental governance, primarily in England. The Act establishes a road map for future legislation and standards, including legally enforceable targets on air pollution, biodiversity, water quality, and waste management.
Businesses of all sizes may already begin preparing by examining their existing processes for monitoring and managing environmental processes, as well as keeping environmental management high on their agenda.
3: Net Zero targets
From October 2021, all businesses applying for government contracts worth more than £5 million per year are required by law to commit to achieving net-zero emissions by 2050.
The new rules, set out in Public Policy Note 06/21, mean organisations will need to create a carbon reduction plan detailing where their emissions come from and what environmental management measures they have in place.
Under the Streamlined Energy and Carbon Reporting regulations, many large businesses already self-report Scope 1 (direct) and Scope 2 (indirect owned) carbon emissions. However, the new targets will push them to go much further. This entails agreeing to reduce CO2 emissions by 80% by 2050, as well as reporting Scope 3 pollutants such as business travel, employee commuting, transportation, distribution and waste.
The requirements are currently only applicable to government contracts, but they may be included in the Common Assessment Standard in 2022.
4: Focus on Diversity & Inclusion
With construction clients demanding more proof that contractors are proactive in this area, Diversity and Inclusion will continue to be a major priority for supply chain plans. A forward-thinking Diversity and Inclusion strategy will aim to establish a positive work environment where everyone feels valued and people are treated as individuals according to their needs, for example, making reasonable workplace adjustments to accommodate those that have different work and life commitments or those with disabilities.
The Supply Chain Sustainability School provides a free Fairness, Inclusion and Respect toolkit that may be found here.
5: Social Value Standardisation
In 2022, the notion of social value is expected to be better defined. Social value in construction refers to how a build may add value in terms of its wider social, economic, and environmental benefits, but there is growing demand for more consistent measurements.
The Social Value Portal’s National Social Value Measurement Framework, also known as the National TOMS, provides a consistent approach for reporting and evaluating social value. Learn more about how construction firms may use it in their operations here.
6: Increasing digitalisation
Comparatively, in the construction industry, digitalisation has taken longer to take hold. However, according to McKinsey, Covid-19 has witnessed a significant change with half of businesses surveyed stating that they have increased their digital investment in order to meet the demands of changing working environments.
One of the major themes is Building Information Modelling (BIM), which enables customers to generate digital models for all elements of the construction process, from tools, people and materials to mapping work areas, reducing defects and identifying health and safety flashpoints. The ability to conduct business planning for construction projects online allows stakeholders greater access to information and documents from anywhere, at any time.
The UK BIM Framework, which is updated on a regular basis, contains additional information about using BIM in construction firms.
7: Growing skills shortage
According to the Office for National Statistics, there has been an unprecedented rise in job vacancies across all sectors to 1.2 million in September 2021. The skills scarcity is a continuing problem in construction due to employees reaching retirement age, while insufficient younger people join the sector to replace them. Furthermore, the number of EU workers has decreased by 42% in recent years.
The skills shortage demands that the construction industry steps up its efforts to attract a greater diversity of individuals into construction occupations. It also emphasises the need for employers and contractors to treat employees and subcontractors fairly.
CHAS has seen record use of the CHAS Jobs Board in recent months, a free resource that allows construction clients to quickly and easily find local accredited contractors. Find out more here.
8: Materials shortages
In 2021, the Department for Business and Energy and Industrial Strategy’s Monthly Statistic of Building and Components reported monthly price increases. According to the Construction Leadership Council, product supply has improved in certain regions, while the Timber Trade Federation is now receiving historic levels of timber imports; nevertheless, supplies will still be strained in 2022.
A lack of HGV drivers to transport goods is also a problem, with few applications for the 10,500 visas for overseas lorry drivers made available recently by the Government. Jobs are still being delayed according on an FMB poll.
9: COVID-19
With new variants difficult to predict, businesses will have to continue managing the Covid-19 risk in 2022. Companies who use contractors on a regular basis can get access to CHAS’ free Client Portal, which includes a database of firms that have completed a Covid-secure Statement of Best Practice.
10: Mental health
Stress, depression, and anxiety are the second most common causes of occupational illness in construction, according to the HSE. This can be caused by deadlines imposed on employees to achieve project deadlines as well as established cultures that may be difficult to change.
Ongoing recruitment pressures mean it’s more important than ever to look after staff and their wellbeing, with careful consideration given to individual needs, especially if companies want to seek and retain a more diverse workforce. Flexible working strategy can offer workers a better work/life balance, impacting positive mental wellbeing and making businesses more attractive to potential employees.
Recruitment pressures are still high, meaning it’s more vital than ever to care for and provide for staff, with individual requirements taken into account particularly if businesses want to hire and keep a diverse workforce. Flexible working promotes a better work-life balance for employees, which improves their mental health and makes companies more appealing to potential employees.
Construction-specific mental health training is available from www.lighthouseclub.org
To find out more about how CHAS can help contractors and clients manage supply chain risks and improve supply chain performance, visit www.chas.co.uk or call 0345 521 9111.
