Reflections on 2022 and a look ahead to the new year
16th December 2022 Business Environment
Mark Spence, Managing Director of the CEF shares his thoughts on 2022 with a look ahead to 2023.
Some thoughts on 2022 and hopes for 2023.......
Reflections on 2022
Whilst 2021 was the year we tentatively re-emerged after covid, 2022 proved to be the year that political leadership went into hibernation, locally, nationally and internationally……
Having launched our 44-point manifesto for the election, it quickly became apparent NI was once again entering a period of political vacuum, most clearly demonstrated through the failure to agree a budget, indeed the first multi-year budget, the results of which are now all too clear.
While 2021 will be remembered by many in the industry as the first year of unprecedented material shortages and price increases, sadly 2022 proved no better and we still await pricing certainty in the year ahead. The PAN 01/21 that CEF negotiated with the Executive on behalf of the industry continues to deliver at least some level of material cost recovery and has also instilled the NEC X1 inflationary clause for new public sector contacts.
This was another year where CEF relied upon the experience and problem-solving capacity of our members to develop messaging and solutions for engaging with public sector clients and we are indebted to our members for their time and effort given selflessly for the benefit of the wider sector.
This has also been a year where we have expanded our list of Patrons and Commercial Partners who have provided members with vital guidance and support at a time when it has been needed most. We encourage you to take full advantage of the available free and discounted services which you can find through our website.
We have continued to visit member sites throughout the year and are always buoyed up by the skills, talent and passion of the construction workforce in delivering the exemplary infrastructure, community assets and housing that is at our core. Please let us know if you have a site you would like us to visit.
CEF’s Impact in 2022
As a key influencer within the Northern Ireland political and economic landscape, CEF have this year contributed to significant progress on behalf of the industry including:
Working with members and Executive to refine and ensure the appropriate implementation of the Procurement Advisory Note PAN 01/21 that addresses the unprecedented challenges of material shortages and price increases. To date this has delivered extensions of time for hundreds of contracts and rebates to contractors in the region of tens of £millions
Our three member taskforces have worked continuously on a range of topical issues:
CO2nstructZero:
input to CLC Zero diesel sites route map
developed and published a Construction and Climate Change Guide
People & Skills:
engagement with CITB on apprenticeships and training
developing practical support for social value impacts
developed Modern Slavery/Ethical employment guide
Risk & Procurement
Provided vital feedback and engagement with CPD on the new Construction Toolkit that replaces previous procurement guidance
agreement on a revised set of standard X and Z Clauses for the NEC4 contract
contractual insurance provisions
Pushing for many of our key infrastructure challenges to be dealt with, specifically the need for significant investment into our wastewater system, as part of the Executive’s 2021/22 Budget
Responding to a significant number of consultations on matters as diverse as NIE Networks future investment plans, the devolution of further fiscal powers to the Executive/Assembly, the introduction of mandatory checklists for planning applications and the delivery of the new DfC Housing Supply Strategy
Maintaining our daily and weekly updates to members on matters of importance to the industry
Taking the appropriate and responsible steps in response to the continued public health situation by pausing in-person CSR and other training when necessary
Engaging with colleagues in the Trade Unions to agree a new wage deal for 2023 including an increase in apprenticeship entry rates to assist in competing with retail/hospitality option
Appointing EY to deliver a report on the challenges facing construction industry skills, recruitment and retention
Delivering a hugely successful inaugural President’s Dinner in March 2022 and the return of the in-person Construction Excellence Awards for 2022, the biggest yet
Working closely with allied bodies such as IoD, CBI, RSUA, RICS, FMB, CIOB and others to represent the widest possible views of the industry in the role of Vice-chair of NI Construction Group
Contributing to the health & wellbeing agenda for the industry in terms of mental health in partnership with NI Safety Group, CITB and others, leading to the inclusion of mandatory Mental Health awareness via the CSR training scheme
Continuing to work with partners in Build UK, the Construction Leadership Council (CLC) and the Construction Industry Federation to advance the cause of construction across these islands.
The Year Ahead
2023 will be a particularly challenging year and our role will be focused on engagement directly with the civil servants who are now charged with steering this region through the most difficult of times whilst our politicians have taken their focus off matters of doing business across NI.
We will also hope to continue much of the positive work underway both locally, through the Procurement Board, Government Departments and Local Government, and nationally through our membership of Build UK and the Construction Leadership Council.
CEF Events for 2023
We also look to bring forward an increasing number of in-person events and training, subject to ongoing public health guidance, as the year progresses. At this stage, we would like to draw your attention to our President’s Spring Reception on Thursday 30th March, our annual Construction Excellence Awards which will launch in April with the competition culminating at our Gala Evening on Thursday 5th October. Further details on these events, as well as many others, will follow over the coming months.
All of this activity on behalf of the industry is, of course, only possible with the support of our members and supported by our Patrons, Partners and sponsors.
We look forward to next year and on behalf of the team here at CEF, I would like to wish you, your staff and families a safe, happy Christmas.
Mark Spence
Managing Director