Following publication of the Government's COVID-19 recovery strategy, the Construction Leadership Council’s COVID-19 Task Force has now laid out its proposals to secure the future of construction businesses.
The CLC's strategy aims to increase the level of activity across the construction sector, accelerate adjustment to the "new normal" and build capacity in the industry to deliver strategic priorities such as decarbonisation and modern methods of production.
There are 3 phases to the plan, to be delivered over two years:
- Restart: increase output, maximise employment and minimise disruption (0-3 months)
- Reset: drive demand, increase productivity, strengthen capability in the supply chain (3-12 months); and
- Reinvent: transform the industry, deliver better value, collaboration and partnership (12-24 months).
While the plan is currently light on detail, it is envisaged that industry bodies and partners will develop sub-sector specific plans that align with CLC’s overarching Recovery Plan.
From a contractual point of view, it is interesting to note that the plan includes:
Restart
- Minimisation of disruption due to contractual disputes
- Investment in collaborative business models, fairer contracts and payment
- Adopting procurement models to deliver better value and whole life performance
- A commitment by public and private sector clients to following the Government and CLC guidance on responsible contractual behaviour
- Consider adoption of the Conflict Avoidance Pledge to avoid disputes
- Seek adjudication through the most cost effective process
Reset
- New ways of working to embed better and more collaborative business models and contractual terms to respond to COVID-19
- Adoption of more flexible and fairer contractual and payment terms
Reinvent
- More collaborative and less adversarial partnership working between the industry and its clients
- New procurement models will support the delivery of built assets that perform better over their life cycle, including delivering greater energy efficiency
Will this plan join the long list of construction reports which have failed to gain significant traction, or does COVID-19 represent a once in a lifetime opportunity to re-think the industry? While the recovery plan seems aspirational, The task force is now engaging with Government to test how the plans proposals might be delivered.
The industry needs to be viewed as an ecosystem, where demand from all subsectors supports robust supply chains