Our challenging missions and theme group objectives – to add value to the construction process, to address the climate crisis, to enhance quality and compliance, to drive innovation and best practice to adopt Smart construction, and to procure on value – or all crying out for innovation.

This month, Martyn Jones asks if we need a new innovation model or framework to help us shape and implement the innovations needed to fulfil these missions and deliver the objectives of our theme groups.

Innovation models help us by providing frameworks or templates to identify, evaluate, advance, and implement ideas and focus on the strategies needed to create the value we are seeking.

From the 1990s onwards our thinking on innovation has been influenced by Roy Rothwell, a British sociologist, a pioneer in industrial innovation and innovation management. He viewed innovation as a multi-factor process which was instigated and sustained through the formation of networks and alliances based on collaboration and more creative relationships.

This chimed, of course, with the ethos and culture of the Constructing Excellence movement. But that was then and this is now, so will Rothwell’s model still cut the mustard given the change in context and the scale of the challenges and opportunities we now face?

Some argue we need to transition from Rothwell’s 5th generation model, as it was termed, to a new 6th generation model of innovation management – the open innovation model.

Open innovation challenges the idea that creativity must come from within an organisation or its network of suppliers, or indeed a particular industry. Instead, organisations pursing open innovation seek external ideas wherever they exist with an ‘outside-in’ and ‘inside-out’ approach sourcing ideas from external sources as well as internal ones.

It is about utilising the purposeful inflows and outflows of knowledge to accelerate innovation internally and externally whilst also expanding the market opportunities for the external adoption of the innovation.

It means sharing knowledge and information about problems and looking to people both inside and outside the organisation and its conventional or orthodox supply chains for ideas and possible solutions and new market opportunities.

Instead of the secrecy and silo mentality of much traditional thinking, open innovation invites a wider group of people to participate in problem-solving and product and process development.

According to Henry Chesbrough, an American organisational theorist, “open innovation is a more distributed, more participatory, and more decentralized approach to innovation”, arguing that this decentralised approach opens up access to external knowledge and new ways of thinking and doing things. It gives businesses and organisations the ability to access new (and sometimes ‘left-field’ or unusual) ideas for new products and services.

But organisations need to manage the process closely, making sure it is consistent with their purpose, missions, and brand values, and recognising that it requires a shift in culture that can take a lot of time and effort to instigate and manage effectively.

It requires a different approach to project management with organisations needing to let go of the idea of ownership and control of current processes and be open to external paths for new technologies, processes, and new sources of innovation.

Open innovation can be adopted in different ways. It is shaped by context, the nature of the industry or sector, the innovation trajectories of the organisation and its network of suppliers, and their appetite for involving external parties.

It might start with Intrapreneurship, a way of finding and supporting innovative talent within our own organisations or businesses. Encouraging and supporting individuals to act more like entrepreneurs, to be more self-motivated, curious, proactive, and action-oriented people with the initiative to pursue an innovative product or service.

And it can be adopted by applying 5th generation principles beyond the organisation’s boundaries, setting key partners in their network of project partners, suppliers, and specialist contractors, innovation challenges to gather ideas, collectively find solutions and create new markets.

Looking outwards beyond our normal network of suppliers, forging partnerships with startups is another way to work together to find a solution to an identified problem. Startups are companies founded to develop a unique product or service, bring it to market and make it irresistible and irreplaceable for customers.

An extension of, and more proactive approach to partnering with startups, is to establish startup incubators or accelerators. This is like a partnership, but also involves the more established organisation investing equity in the startups and their ideas.

From a Constructing Excellence perspective, co-creation labs are an interesting concept associated with open innovation. These are ‘places’ dedicated to innovation, with the resources, mentoring, and knowledge needed to explore challenging questions and exploit opportunities.

Such labs can be either internal to an organisation or perhaps more fruitfully convened externally involving clients, customers, suppliers, startups, and other potential partners.

And we have done it before: The Bristol CE Club’s Specific Innovation Clusters and its Here to Learn workshops have demonstrated how the CE movement can bring together people with diverse ideas and knowledge to creatively tackle issues and shape new ideas.

REVISED CAMPAIGN: applications open for Bath, Dorset, Somerset, Swindon and Wiltshire only

Role: Generation for Change South West (G4CSW) – Sub-Committee – Chair or committee member

About G4C:

G4CSW is part of Construction Excellence South West, and we share joint aims to promote future leaders in the industry. G4CSW has been rapidly growing momentum as the South West’s young professional voice of the UK built environment.

G4CSW is particularly focused on encouraging students of school age to consider a career in the industry. We hope our group of inspiring and relatable individuals will help demonstrate the opportunities available in the industry to the next generation.

Overview:

Are you an ambitious and enthusiastic young/junior member of the construction industry who is keen to influence the agenda, raise your profile, accelerate your growth and become a future leader? Or do you know someone who is?

If so, you may want to seize this opportunity to get involved with G4CSW.

G4CSW is being BRAVE – it is undergoing an exciting change and restructure.

The G4CSW committee is being split into 8 sub-committees, so we can provide the best possible service to key locations and cities in the South West. These locations and cities align with the current Constructing Excellence South West clubs. Each sub-committee will have its own Chair, who will report back to our overall South West Chair (Lizzy Painter) on a regular basis with the other sub-committee Chairs. This is to ensure continuity across the group, alignment of agenda, and to help each other grow into these roles. We are looking for individuals to join the sub-committees for their area, either as a Chair (where there is an available role) or on the sub-committee.

Key Responsibilities: role as a G4CSW Sub-Committee Chair

As a sub-committee Chair, you will be expected to:

· Networking Events: Organise local networking events for young people in your area who work in the construction industry on a regular basis (e.g. monthly).

· Careers Events: Support local careers events in your area for students of school age.

· Podcast Series: Support the G4CSW podcast series, which interviews young people in the industry about their experience and ambitions, by recommending content and sharing the series with your contacts.

· Leadership: Run your sub-committee for your area, ideally hosting online (or in-person) meetings on a monthly basis.

· Collaboration with CESW Clubs: Attend committee meetings for the equivalent Constructing Excellence South West club, and provide them with updates on G4C activities.

· Collaboration with G4CSW: Attend committee meetings for G4CSW (i.e. with the other sub-committee areas) on a quarterly basis.

Key Responsibilities: role as a G4CSW Sub-Committee member

As a sub-committee member, you will be expected to:

· Support the Chair: Support the Chair for your area in their role mentioned above.

· Networking Events: Help organise local networking events for young people in your area who work in the construction industry on a regular basis (e.g. monthly).

· Collaboration with your G4C Sub-Committee: Attend sub-committee meetings online (or in-person) on a monthly basis.

Application process:

Applications for Bristol, Cornwall, Devon and Gloucestershire are closed. But if you would like to be added to a contact list for events in these areas, please let us know.

Interested candidates for Bath, Dorset, Somerset, Swindon and Wiltshire should submit your application to Lizzy Painter (Elizabeth.painter@rwkgoodman.com). Please explain a bit about yourself, the role you are applying for, and why you think you will make a good fit. Please include “G4C SW Sub-Committee Application” in the subject line.

The extended closing date for applications is Friday 3 May 2024.

 

Lee Rowley announces building safety enforcement League Table in update on building safety

On Tuesday (26 March), Housing Minister Lee Rowley gave an update to the House of Commons on building safety. Included in this was an announcement that a “League Table” will be published to show the public in which areas enforcement actions around building safety have been happening. Also announced was a further £6 million for council enforcement teams for the development of a new regulatory protocol for greater consistency and a new fund that partners can access for legal support in complex cases. He also gave an account of the progress with remediation works, saying nearly 60,000 homeowners have had their remediation work completed so far.

 

Government publishes response to Levelling Up, Housing and Communities Select Committee’s inquiry on financial distress in local authorities

On Monday (25 March), the Government released its response to the LUHC Select Committee’s inquiry on financial distress in local authorities. This touched on several aspects of local government. Comments related to housing include:

• The Government understands the importance of stable housing and is taking action to increase access to affordable housing. Increasing the Local Housing Allowance (LHA), in recognition of increasing rents, is a key part of helping those who get housing support.
• The Government’s £1.2 billion investment from April 2024 will increase LHA rates to the 30th percentile of local market rents. This will see 1.6 million private renters gain, on average, nearly £800 per year in additional help with their rental costs in 2024-25.
• The Government’s £11.5 billion Affordable Homes Programme will aim to deliver thousands of affordable homes for both rent and to buy across the country, after the Levelling Up White Paper committed to increasing the supply of social rented homes. A large number of those new homes delivered through the Affordable Homes Programme will be for social rent.
• The Government does not support land value taxation. For businesses, it would mean soaring bills for local high streets where land values are higher; on homes, it would tax local residents for the size of their garden.

 

Labour launches local election campaign

Keir Starmer has today (28 March) launched Labour’s local election campaign, warning that councils face an appalling funding situation which Labour cannot easily reverse. While light on new announcements, Starmer called for three-year funding plans instead of one-year ones to help the funding situation but noted that Labour will not be able to just “turn funding taps on”.

 

Department for Levelling Up, Housing and Communities announces new regime to deliver decent homes for social housing

On Wednesday (3 April), the Department for Levelling Up, Housing and Communities announced new rules to make social housing providers raise standards for their tenants. The new rules require landlords to:

• Have an accurate record on the condition of every home, based on checks of properties so landlords can understand any problems and take action.
• Set clear timelines for the completion of repairs, maintenance and planned improvements, communicating them clearly to tenants.
• Give tenants opportunities to influence and scrutinise their landlord’s services such as through meetings with tenant organisations.
• Provide tenants with information about their rights and how to make complaints.
• Publish the new tenant satisfaction measures to make it clear how tenants feel their landlord is performing and hold them to account.

Department for Levelling Up, Housing and Communities updates guidance to call for second staircases in all new buildings over 18 metres from 30 September 2026

On Friday (29 March), the Department for Levelling Up, Housing and Communities updated its guidance to call for second staircases in all new residential buildings over 18 metres. The change in guidance adds to a package of recent fire safety measures and reforms including the Building Safety Act which aims to ensure the safety of people in both new and existing tall buildings. The threshold height was decided after a public consultation last year. Regulation for existing buildings is also being considered as part of the Grenfell Tower Inquiry’s recommendations.

 

IN THE NEWS

Government 55-day average payment rule comes into force

Contractors bidding for public works contracts worth over £5m must demonstrate they pay all invoices within 55 days, or face a public work ban.  Government 55-day average payment rule comes into force | Construction Enquirer News

Main contractor trade credit insurance hits crisis point

Jittery insurers are pulling trade credit insurance cover on some of the country’s leading contractors. Main contractor trade credit insurance hits crisis point | Construction Enquirer News

City of London launches heritage buildings retrofit toolkit – Energy Live News

Energy Live News reports the City of London has launched a toolkit to help retrofit the area’s 600-plus listed buildings and other heritage sites without compromising their heritage. The Heritage Buildings Retrofit Toolkit aims to implement the necessary adaptations for carbon emission reduction in heritage buildings in line with the City Corporation’s Climate Action Strategy towards achieving net zero by 2040 and was launched at a “Retrofitting the City” event.

Department for Energy Security and Net Zero announces £75 million allocation of the Social Housing Decarbonisation Fund

On Monday (18 March), the Department for Energy Security and Net Zero announced over 8,800 social homes will be upgraded at no cost to residents, using a £75 million allocation of the Social Housing Decarbonisation Fund. The Department claims these upgrades will save the average household £400 per year in energy bills and support 1,300 jobs. Funding will be made available to 42 councils and housing associations across England to install energy saving measures.

Secretary of State for Levelling Up, Housing and Communities intervenes in London Plan housing policies

On Monday (18 March), the Department for Levelling Up, Housing and Communities announced it has directed the Mayor of London to conduct a review of London Plan policies. Alongside this announcement, the Department published a letter from the Levelling Up Secretary Michael Gove to Sadiq Khan. The review will focus on the use of industrial land and the 47 other opportunity areas identified for their potential to deliver new housing and jobs.

 

Department for Energy Security and Net Zero announces Government backing for AI businesses for net zero innovation

On Tuesday (19 March), the Department for Energy and Security and Net Zero announced £1.73 million of funding for AI-driven green tech. The funding has been awarded to eight different projects, including on solar energy production, energy efficiency in business, and cutting energy costs.

Culture change in the built environment industry: October 2021 to July 2023

The Industry Safety Steering Group’s fourth report on the progress in encouraging culture change among groups within the built environment sector. Culture change in the built environment industry: Culture change in the built environment industry: October 2021 to July 2023 – GOV.UK (www.gov.uk)

Constructing Excellence co-hosts senior infrastructure leaders breakfast meeting

Constructing Excellence co-hosted a senior infrastructure leaders breakfast meeting on energy transition with UCL and Advance Consultancy. Baroness Brown of Cambridge, chair of the Lords Committee on Science & Technology provided insights into the scale and pace required to meet the Net Zero challenges, what it will mean for the energy mix and the built environment as well as a hard-hitting message on the impact of the climate change that is already happening.

 

BRE launches its manifesto for 2024

On Thursday (21 March), BRE launched its manifesto for 2024, calling for cross-departmental measures for a new government to create a better built environment, ahead of a forthcoming general election. BRE is calling on the next government to commit to world-leading standards for British buildings, with key asks including:

• Establish smaller campuses as designated ‘micro’ investment zones to support dedicated specialist research and development, with the same advantages as larger ones
• Embrace AI technology like the digital twinning of UK infrastructure and the built environment to enable improved planning and retrofit
• Foster government-industry collaboration, working with low carbon entrepreneurs at early stages of development to ensure innovative products can meet sustainability standards

IN THE NEWS

Is retrofit data the key to unlocking a $2 trillion market – PBC Today

PBC Today reports the World Economic Forum, in collaboration with PwC, has published a report which claims international businesses could save a collective $2 trillion a year by focusing on energy efficiency. It points out that buildings were responsible for 30% of the world’s energy usage in 2022, with WEF researchers calculating that energy intensity in buildings could be reduced by 38% using existing solutions. The report also highlighted that retrofitting buildings increased their value by up to 15%.

[10:56 AM] Alison Nicholl

Cost overruns and delays risk nuclear’s place in energy transition, FT 22 March

Cost overruns and delays risk nuclear’s place in energy transition (ft.com)

 

Housing developments axed as Tory planning reforms take effect, FT 22 March

England’s councils reverse course on agreed plans after targets diluted despite acute shortage of homes.

Housing developments axed as Tory planning reforms take effect (ft.com)

Levelling Up: No compelling examples of delivery so far as delays hold back spending

The Government is unable to provide any compelling examples of what Levelling Up funding has delivered so far. In a report published today (15 March), the Public Accounts Committee (PAC) warns that councils have been able to spend just a fraction of the Government’s promised Levelling Up funding, with only just over 10% of the funds provided to reduce inequality under the Levelling Up agenda actually spent and making a difference on the ground.

The PAC’s report finds that, of £10.47bn in total funding from central government, which must be spent between 2020-21 and 2025-26, local authorities have been able to spend only £1.24bn from the Government’s three funds as of Sept 2023. Furthermore, only £3.7bn had been given to local authorities out of the total allocation by the Department for Levelling Up, Housing and Communities (DLUHC) by December 2023.

Read more Levelling Up: No compelling examples of delivery so far as delays hold back spending – Committees – UK Parliament

Department for Energy Security and Net Zero announces changes to the Boiler Upgrade Scheme

On Thursday (14 March), the Department for Energy Security and Net Zero announced changes to the Boiler Upgrade Scheme which could save consumers around £2,500 in upfront costs due to insulation no longer being needed to access heat pump grants. The removal of mandatory cavity wall and loft insulation makes it easier to transition to a heat pump from a gas boiler, and comes as boiler costs have increased. The Government has also called for the Competition and Markets Authority to review competition in the home heating market to counter boiler price increases. It is emphasised, however, that properties should have appropriate insulation when installing a heat pump in order to gain the full savings benefits.

  

Department for Levelling Up Housing and Communities announces a strengthened 100% council tax premium on long term empty homes

On Monday (11 March), the Department for Levelling Up, Housing and Communities announced a doubling of council tax on long-term empty properties will come into force on 1 April. This aims to reduce the number of empty houses and therefore increase overall housing supply, with these rules applying to any property which has remained empty for more than 12 months, rather than the current two years. Councils will be given more powers to introduce the tax premium on second homes in their area from next year, with rules applying to empty properties that are uninhabitable due to extensive renovation, second homes that are not available for use year-round due to planning restrictions or for up to a year on homes that have been inherited to prevent families who are grieving from having to pay.

Product Platform Rulebook Update

Delivered as part of the Government’s Transforming Construction programme, the Product Platform Rulebook forms a key enabler for the Infrastructure and Projects Authority’s (IPA) Transforming Infrastructure Performance (TIP) agenda. The Construction Leadership Council will be taking over the reins of the Product Platform Rulebook in 2024 through its new Industrialised Construction workstream. This work will see the Rulebook revised and re-released in the form of a new ‘Platform Playbook’, setting out a clear path to the adoption of platform approaches for social infrastructure delivery. The group is chaired by Ron Lang, former Chief Technical Officer of the Hub and now Regional Director at AtkinsRéalis. Read the full press release here.

 

Registration of the Building Control Profession – Transitional Arrangements

Philip White, Director of Building Safety for the Health and Safety Executive (HSE) has written to the Building Control industry outlining a competence assessment extension period for Registered Building Inspectors, who meet set criteria. The extension period is 13 weeks from 6 April to 6 July 2024.
Experienced building control professionals who are not trainees but have not yet completed a competence assessment will have the scope of their registration temporarily extended provided they meet the following criteria:

• They are an existing building control professional;
• They are registered as a Class 1 RBI by 6 April 2024;
• They are enrolled in, and in the process of having their competency assessed through, one of the BSR approved competence assessment schemes by 6 April 2024; and
• A scheme provider has not told them that they have not passed their competency assessment for a second time.

This is not an opportunity to delay completing registration as an RBI and there will be no extension to these arrangements. Professionals who are not registered by 6 April 2024 will not benefit from the extension period and will not be able to continue to work on regulated building control activities.  Further information on building inspectors and registration details can be found here.

New Economics Foundation publishes Buying Back Better report on social housing acquisition

On Tuesday (12 March), the New Economics Foundation published a report titled Buying Back Better: How social housing acquisitions in London can tackle homelessness and help councils avert bankruptcy. The report calls for the Government to take measures including:

• Commit to a new Affordable Homes Programme beyond 2026 at the earliest opportunity, which includes a longer-term funding settlement for both the Greater London Authority and housing providers.
• Introduce a national housing conversion fund, backed by significant grant funding, to enable councils across the country to deliver more acquisitions.
• Relax the 10% cap that limits the number of homes delivered by acquisitions under Affordable Homes Programme grants administered by Homes England to match the higher 30% cap administered by the Greater London Authority, as well as the acquisitions cap on right-to-buy receipts, so that councils in London and across the country can maximise the advantages of acquisitions while continuing to prioritise grant for new build homes.
• Allow councils to combine right-to-buy receipts with other forms of grant funding, such as Council Homes Acquisition Programme funding, to give councils the flexibility they need to replace sold homes.
• Provide the Greater London Authority with additional grant funding to enable environmental improvements as part of future acquisitions programmes, so that the Greater London Authority can consider raising the standard of homes acquired to EPC ‘C’.

This month marks two years since the Building Safety Act (BSA) introduced a new enhanced regulatory regime for building safety and construction products,

This followed in the wake of the Dame Judith Hackitt’s report, ‘Building a safer future,’ in which she made clear that we needed to adopt a very different approach to our regulatory framework for higher-risk buildings (HRBs).

In responding to this new, more rigorous regime, Martyn Jones argues that this will drive change in our culture and behaviours and its effect may well extend beyond the BSA’s current application to residential HRBs (containing at least two residential dwellings and over 18m or seven storeys in height), hospitals and care homes.

The BSA sets out ways in which we can secure the safety of people in and around buildings, improve building standards and regulate our industry in line with best practice principles

It is introducing a set of new duty holder roles and responsibilities to ensure a stronger focus on building safety, that are now impacting on all stakeholders in construction projects.

The Building Safety Regulator (BSR) is now the central body for controlling HRBs with a process that will require robust record-keeping by the duty holders – Principal Designers and Contractors and Principal Accountable Persons – of all changes made to detailed previously signed off plans.

There are three project gateway points to focus and strengthen regulatory oversight by requiring duty holders to show to the BSR that plans are detailed and robust and that the understanding and management of building safety is appropriate.

Gateway 2 is particularly significant in that the applications made must contain sufficient information to show how the works (when complete) will satisfy all the applicable functional requirements of the building regulations before construction can begin. And demonstrate how construction will be effectively managed so that the work carried out is as described in the original application.

Other documents that need to be submitted at Gateway 2 include a competence declaration from the developer to the employer, a construction control plan, a change control plan, Building Regulations compliance statement and a fire and emergency file.

Each building will have a Golden Thread of information, kept digitally and readily accessible to people throughout a building’s life cycle, providing transparency of information and an audit trail.

In achieving the laudable aims of the BSR we should take the opportunity to rethink our procurement practices, to shift from our traditional operating system to ones more supportive of collaborative behaviours and to link the design, construction, operation, and maintenance of HRBs in a more holistic and seamless way.

What key behaviours will be needed?

Let’s start with leadership and the commitment needed to align with and support the BSR’s Mission to protect people and places. And their Vision to create a built environment where everyone is competent and takes responsibility to ensure buildings are of high quality and safe, so that residents and other building users are confident that the failures of the past will not be repeated.

Then there’s the need for learning to demonstrate and underpin competency, which is now a legal requirement for new duty holders, hence the current wave of courses and learning aimed at Principal Designers and Constructors and Principal Accountable Persons.

This growing competency needs to be placed alongside the openness, integrity, discipline, and meticulousness demanded by the new control processes. This means working effectively through clarity of tasks, having clear information flows, transparent decision-making norms and practices, and effective management of projects and supply chains.

It’s about being able to behave and work in a controlled way, complying with rules and standards.

Then there’s the dynamism necessary to embrace the change by proactively and adaptively pursing the new opportunities, and at the necessary pace.

Alongside this can be added the drive, the persistence, and the resilience to confront the resistance to change that we know lies ahead.

In recognition of how interdependent we are in construction and the level of uncertainty and complexity in most projects, we need to collaborate through the building of relationships based on shared learning, competence trust and inclusion, mutual advantage, and support for each other.

Yes, embracing the BSA will offer us a more effective regulatory and responsibility framework, but also a chance to reconfigure our operating system with clearer roles, duties and responsibilities, standards, and guidance. And also, to grasp the opportunity to rethink the way we have all too often worked in the past, and shift from opacity to transparency, from ambiguity to clarity, and from fragmentation to integration.

A time of change, transition, and opportunity

It is a privilege to write the CESW Newsletter introduction at this exciting time for the organisation and its members. I attended the recent Annual Review Luncheon that Kingsley mentioned in the March edition. It would be remiss of me not to thank Dan Macey for his energetic and transformative chairmanship of CESW. The new structure, awards, and growing membership are primarily the result of his leadership and determination. Thank you.

Kingsley has a tough act to follow. However, having got to know him over the last few years I am confident that CESW is in great hands with him and Kevin at the helm. We must never forget that CESW is nothing without its members engaging proactively whether regionally or within the various clubs. To this end, our board directors are committed to keeping our content, initiatives, and clubs relevant to our members in a fast-evolving industry. I genuinely feel that the usual laggard label for the construction industry is no longer correct, as many innovations across our various disciplines are being adopted at pace. This means that CESW needs to understand these and be part of the discussion and change that is rapidly occurring in our industry. These are exciting times, and I know the entire board is determined to deliver for you, our members.

As the member’s director, I want to support Em Pardede, our member’s manager, in ensuring that members get the most out of CESW. In the past, it wasn’t clear what different levels of membership meant, but now it is, and I know she will work hard to ensure that you all get the most out of your commitment to us.

I hope that you enjoy the newsletter. Please engage with our events, as the larger the attendance (space aside), the better and more diverse they are. Please check in with Em and ensure that your organisation’s primary contacts and employee details are all correct so your business can maximise the benefits of being a member. The events are a great opportunity to network while learning and developing your knowledge and skills.

I look forward to seeing you at the next event.