ECA president highlights opportunities from change

In his 2005 presidential address Tony Morgan spoke about change within the industry and how we can turn such change into opportunity. I believe that we can, and should, use change to positively influence the commercial success of our businesses.

I would like to highlight some of the key areas for change and talk about what your Association is doing to help you understand them and turn them into business opportunities.

New legislation can create opportunities, but even the best ideas can be frustrating if they're not properly understood. An important example of this is the Work at Height Regulations. ECA members encountered major problems as clients banned stepladders on-site, even though the regulations do not ban the use of steps.

The misapplication of this one set of regulations is adding significant costs to many jobs. The Association will be working with the Health and Safety Executive, major contractors and clients, to improve the situation.

Environmental issues present business opportunities but we must rise to the challenge. The ECA held a major workshop on environmental issues in October of last year. This led to a number of ECA initiatives, including partnership with Government and other organisations to deliver practical advice on environmental management and the understanding of new legislation.

Two pieces of environmental legislation are the forthcoming Waste Electrical and Electronic Equipment Regulations and Part L of the Building Regulations.

It is currently unclear when the WEEE Regulations will be implemented, but when they come into force they will place a legal and financial responsibility on ‘producers' of electrical and electronic waste to support extra recovery and recycling. Anyone classified as such will need to register with the Environment Agency. Costs will inevitably be passed down the supply chain. However, there are commercial opportunities in helping clients deal with these regulations.

Changing environment

Part L will have a significant impact upon building services contractors as it is probably the first time that major developers and builders will really have to take notice of the energy efficiency aspects of their projects.

All new and existing buildings will be given an energy rating and new buildings will have to meet a minimum standard of energy efficiency. Energy performance targets will require a whole building calculation, which, in turn, will require far greater consultation between designers, services engineers, contractors and manufacturers. It will no longer be possible to produce a design without taking into account the servicing strategy or the products and systems to be used to achieve it. Electrical and mechanical services contractors will have to be involved much sooner.

Part L will have a significant impact upon building services contractors. It is the first time that developers will have to take notice of energy efficiency on their projects

The ECA welcomes Part L and we are pleased to see that many of our recommendations on the original consultation document have been included. For us, the key issues are compliance and cost-effective application. We particularly welcome the intention to introduce nationally recognised qualifications to ensure a high level of compliance.

The Regulatory Reform Order on fire safety is also due out later this year. It will have major implications for contractors who work on fire alarm or emergency lighting systems. The ECA is producing practical guidance and training for member companies.

Onto Part P of the Building Regulations. While the ECA welcomed the regulations and lobbied long and hard for them, we are very disappointed to see that they are not being policed adequately by Building Control. I would urge the Office of the Deputy Prime Minister to give some attention to this matter.

The review of the Construction Act is of paramount importance to the ECA. We are pleased that the key issues of concern, including payment, have been identified in the consultation document. However, we were disappointed to see that the opportunity to consider the implications of what constitutes ‘a contract in writing' has been deferred, especially since there appeared to be widespread industry support for addressing this matter. The ECA, along with its partners in the SEC Group, will continue to work for real improvements.

Tackling dispute resolution is also a key issue but the present adjudication system has become very expensive and technical, something we are seeking to address. We have been discussing an in-house adjudication system whereby two ECA member companies can come together to sort out any problems they have between them.

The government's move towards PFIs and framework agreements means that the procurement of various projects, such as school and hospital refurbishments, are increasingly being bundled into large packages and awarded to national contractors. This is having a serious effect on small and medium-sized companies in the construction sector.

While considering procurement, it is important that the findings of Sir John Egan's report, entitled Accelerating Change, are not forgotten. These promote greater integration of the various participants in a construction project.

Olympian endeavours

The London Olympics is a tremendous opportunity to implement best practice in construction procurement and to showcase the benefits of integrated teamworking. In addition to the Accelerating Change recommendations, there is wide acceptance that project bank accounts should be used. These ensure fair payment practice to the project participants and achieve real cost savings to the client.

The London Olympics is a great opportunity to implement construction procurement best practice and to showcase the benefits of integrated team working

All these changes mean that training and upskilling are vitally important to the industry if we are to maintain a strong workforce for the future. This is particularly important for adult training, where funding is currently scarce. If this issue is to be tackled seriously, it must happen now if major projects, like the 2012 Olympics, are to be achieved without disruption and excessive costs.

Presently, the money is channelled through local Learning and Skills Councils, where requests for funding are often based on what is good for the colleges, rather than the industry. Available funding should be channelled to proper, industry-recognised trainers overseen by SummitSkills.

There is recognition that full funding for training adults may not be appropriate or necessary to upskill the existing workforce or reskill new trainees, but there is no flexibility in the present funding package. We would urge the government to rethink the funding available for adult training.

Issues of mechanical and electrical convergence are very much in our minds; along with a need for skills flexibilities and issues arising from the increased use of agency staff.

Working together

Many of the issues I have touched on are not the preserve of the ECA alone; they have a common importance for building services companies across the range of disciplines.

Influencing government and protecting the interests of our members is a job best done in co-operation with others. This is one reason for convergence of the electrical, mechanical and other building services disciplines. It also benefits the client who wants building services packages delivered from a single source. And, there is the importance of providing efficient and economical services to all members. I believe that convergence between the institutions of the industry can indeed help all members.

The SEC Group has been effective in multiplying the influence of our sector of the industry, especially on contractual matters. But this is not enough. The ECA has signed a Memorandum of Co-operation on Health & Safety with the HVCA; we are working towards a joint initiative with HVCA to service mechanical and electrical companies who want Part L certification; and we are working together on a new strategic initiative to plan the future structures for labour management in the building services sector.

It is this Association's role to inspire, encourage and achieve co-operation and community of vision in all of these respects. This is necessary to underpin the future prosperity of our industries.