Payment performance and pre-qualification in focus as Build UK marks 10 years

Build UK’s chief executive has said that payment performance and industry standards have improved during the trade body’s first decade.

According to the Building Engineering Services Association (BESA), Suzannah Nichol made the comments during a recent edition of the Behind the Built Environment podcast, hosted by BESA chief executive David Frise.

The podcast episode covered progress on average payment times, pre-qualification schemes, and construction competence since Build UK was launched in 2015.

Payment terms shorten and transparency improves

The Building Engineering Services Association reported that Build UK contractor members have reduced average payment terms from 45 days to 29 since benchmarking began.

Suzannah Nichol said: “We improved payment metrics…when we started benchmarking them. Transparency is key, when you put things in a league table, it starts to drive different behaviours.”

Nichol added that government enforcement of payment performance is increasing. Under current requirements, contractors must now pay 95% of invoices within 60 days to continue receiving public sector contracts.

She noted a shift in the tone of payment discussions since Build UK was founded: “They were very adversarial and now they’re much less combative.”

Retentions and refusal to work with late payers

According to the podcast, new reporting on retentions will soon be introduced. Companies will be required to disclose how much they are withholding.

Nichol said: “Then we’ll see where the money is sticking.”

She encouraged businesses to stop working with late payers: “I know it’s brave to say I’m not going to work for you, but at some point that is a business decision you make to work for somebody who is going to pay you or isn’t going to pay you. And we make it easy because we show you exactly what their payment terms are.”

Nichol told the podcast that BESA members “had more power to their elbow” than they may realise.

Pre-qualification scheme simplifies access

Nichol said Build UK introduced the Common Assessment Standard (CAS) to simplify pre-qualification, replacing 21 different schemes used in 2015.

She explained this has helped contractors prepare for compliance under the Building Safety Act.

She acknowledged however that many contractors still face challenges understanding their duties under the new legislation.

Nichol said: “I’m used to reading legislation, I understand hopefully quite a bit of this, and it [still] hurts my brain just trying to understand what the requirements are, what that looks like, how do you deliver it?”

She questioned the impact of long technical documents on the industry: “Why we think writing 90-page reports and giving [industry members] complicated legislation is going to change behaviour I’ve honestly got no idea.”

Addressing skills shortages through mentoring and training

Nichol told the podcast that skills development was a key area of work during Build UK’s first ten years.

She highlighted the ‘Open Doors’ programme as one of its top achievements.

She said: “We have so many jobs in construction that we find it difficult to explain in a 30-minute careers talk. And we know from our research that 88% of our visitors [to a site opened up to school, college and community groups] would then consider a career in construction.”

Nichol added that older workers should be supported to transition into teaching roles.

She said: “They’ve got to be the best people to inspire that next generation…by teaching the skills they have and talking about all the best parts of their work.”

According to BESA, its new Skills Legacy programme is intended to help address this issue.

The trade body said the scheme will train experienced engineers to become assessors, building safety auditors, and trainers.

The programme aims to place 100 engineers, with The Manly Trust funding the first 50 positions.

Budget reform and skills development in UK construction: Summary

The Building Engineering Services Association (BESA) has published a podcast interview with Build UK chief executive Suzannah Nichol.

Nichol said Build UK members had improved average payment times from 45 to 29 days.

She said contractors must now pay 95% of invoices within 60 days or lose access to public sector contracts.

Nichol said businesses would soon have to report on retention payments.

She urged contractors to stop working with late-paying clients.

Build UK introduced the Common Assessment Standard to reduce complexity in pre-qualification.

Nichol said the standard helps firms meet requirements under the Building Safety Act.

She said the complexity of safety legislation made compliance harder.

Nichol raised concern about the average reading age in the construction workforce.

She said Build UK’s ‘Open Doors’ initiative had encouraged more young people into the industry.

BESA’s new Skills Legacy programme will train older engineers to become assessors and trainers.

The Manly Trust is funding the initial phase of this scheme.