Race for London 2012 and

Public Sector Work - Respect for People

23 October 2008

Clive Young,

Assistant Director, Skills and People Policy

Construction Sector Unit

London 2012 -

Respect for People

23 October 2008

Objectives

Presentation - 20 mins.Discussion - 20 mins.

Presentation:

You will have a better understanding of:

• The cross government/industry Sustainable Construction strategy and People aspects • The Respect for People agenda elements• How Respect for People relates to the construction industry Commitment to People principles • Respect for/Commitment to People and procurement (pubic sector and ODA)• Business benefits arising from adopting Respect for/Commitment to People principles

Discussion

• Issues arising

Happy to clarify whenever necessary (what do you mean by …?), but detailed questions and points at the end, please.

London 2012 -

Respect for People

23 October 2008

Construction Sector Unit – our role

• Respect for People – as an advocate, supporting industry initiatives; helping to communicate the business case.

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Fatal accidents in construction since 1960

KPI measurement(Constructing Excellence)

• General - Taking the lead in central government in relations with the Construction sector.

- Working with industry, and other stakeholders to deliver a marked improvement in business performance (construction business improvement agenda.)

London 2012 -

Respect for People

23 October 2008

The Sustainable Construction agenda

• A Cross-Government/ industry programme

• Purpose - To drive forward a sustainable, innovative and productive industry sector

• Objectives - Higher standards - An industry galvanized to drive forward sustainability agenda - Clarity for the industry of Government’s efforts relating to sustainable construction

London 2012 -

Respect for People

23 October 2008

Two key challenges

2. Build sustainably – How we should do it; the process

1. Build sustainable buildings – What we should build; the product

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The Sustainable Construction agenda

The Means:• Procurement• Design• Innovation • People• Better Regulation

The Ends:• Climate Change Mitigation• Climate Change Adaptation• Water• Biodiversity• Waste• Materials

London 2012 -

Respect for People

23 October 2008

The Sustainable Construction agenda

Main People elements:

• Skills

• Health and safety

London 2012 -

Respect for People

23 October 2008

The Industry improvement agenda

• Origin – Egan Task Force Industry improvement agenda: Rethinking Construction/Accelerating Change

• Ownership – Industry, supported by Government• Strands covered: * Committed Leadership * Focus on the customer * Product team integration * Quality-Driven agenda * Commitment to People

London 2012 -

Respect for People

23 October 2008

Respect for People – from 1998 to the present

Movement for Innovation report (Commitment to

People ‘Our Biggest Asset’) - Working Group on Respect for People

- 2000

Respect for People

Working Group final report (A Framework for Action) - 2004

Rethinking Construction Task Group

report – 1998 (Commitment

to People)

The Commitment to People Cycle

Strategic Forum 2012 Construction Commitments (Commitment to People) -

2006

Strategic Forum Construction Commitments (Commitment to People) - 2008

London 2012 -

Respect for People

23 October 2008

Respect for People – what it is

Main Elements

• Workplace Diversity • Site Facilities and the site working environment • Health • Safety • Career development and lifelong learning • The off-site working environment • Behavioural issues

• To encourage businesses to value those who work on their projects, and the surrounding community.

• They are intended to be reflected in your approach to everything from health and safety to providing training opportunities and encouraging job satisfaction.

London 2012 -

Respect for People

23 October 2008

Respect for People and the Strategic Forum Construction commitments (1)

Worker satisfaction ) Working environment )

Work in occupied premises

Training Plan Training and development will be offered to all staff, including the client, to meet individual, project and company needs Opportunities for apprenticeships and work experience will be offered

Construction sites will be clean, tidy and provide good quality facilities, including catering, appropriate to the diverse needs of the workforce.

Sites will be run considerately without causing nuisance to local communities Local communities will be fully involved and engaged from the outset of all projects

R4P themes Commitment to People principles

London 2012 -

Respect for People

23 October 2008

Respect for People and the Strategic Forum Construction commitments (2)

Equality and diversity

Health and Safety

A policy of equal opportunities will be adopted to encourage a diverse workforce

Health and safety is integral to the success of any project, from design and construction to subsequent operation and maintenance

All designs will address health and safety issues and all projects will have risk register

2012 construction projects will aspire to be injury and incident-free

Every project will have a strategy to deal with occupational health and provide full time qualified medical staff on site

All health and safety risks, including those related to occupational health, will be assessed managed action taken an communicated from inception to design

Companies will sign up to and implement the Strategic Forum Health and Safety Code

All professional on site staff will hold Construction Skills Certification Scheme (CSCS) or equivalent.

London 2012 -

Respect for People

23 October 2008

Respect for/Commitment to People and procurement (public sector and ODA) (1)

• Intended for all parties in the supply chain, including clients

• Client organisations signed up:

Central Government: MoD-Defence Estates, DoH, DWP, BERR, Highways Agency

Local Government and housing: Fusion 21 Ltd, Liverpool Housing Trust, Trent & Dove Housing, East Thames Group, Gallions, Housing Corporation

Other: RDAs (SEEDA, SWRDA, EMDA), Land Securities, Construction Clients Group, Local Government Task Force, ODA

London 2012 -

Respect for People

23 October 2008

Respect for/Commitment to People and procurement (public sector and ODA) (2)

• Policy relating to construction and local employment and training opportunities becoming well established at local level • Increasing attention at central Government level (apprenticeship challenges)• Practical issues and learning from others – the Construction Legacy – Housing/London experience

Partnership between Housing Forum and ConstructionSkills, 2003 Purpose – through its programme of demonstration projects, and focus on employment and training, to ensure there are long term benefits to local communities: filling of skills gaps; investment in the communities. Case studies detailing lessons learned and benefits achieved More demonstration projects sought in the South of England

Employment and training opportunities

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The ODA and the 2012 Construction Commitments – (2006)

Source: London 2012 website

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ODA Procurement Policy (1)

Source: ODA website, published March 2007

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23 October 2008

ODA Procurement Policy (2)

The big question? - In the eyes of the ODA, what is the ‘perfect’ way to provide excellent Respect for /Commitment to People?What ODA has said:

• It will contribute to a London 2012 employment and skills legacy • It will work with national and regional employment and skills bodies to achieve this • It is committed to fair employment terms and encourages its suppliers and contractors to adopt fair employment terms and conditions and practices. This includes payment of nationally agreed rates where applicable and fair and appropriate pay. • It encourages suppliers and contractors to implement adequate provision for employee representation in the work place, to enable quick and smooth resolution of potential industrial conflicts.• It will look to its main contractors to ensure that their personnel have the required competency and skills, through the use of schemes such as the Construction Skills Certification Scheme, the national vocational qualifications framework, apprenticeships and any equivalent arrangements.

The full policies are available at www.london2012.com and hard copies are available on request

London 2012 -

Respect for People

23 October 2008

Respect for People Business Benefits

What the advocates say

London 2012 -

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23 October 2008

What the Business Advocates say (1)

Organisation & Nature of Business

Area of interest Benefits noted

Emanuel Whittaker,Manufacturer /contractor

Diversity • More attractive to public sector customers

• Helped in the bid process for new customers – has enabled us to answer more fully and successfully the questions on equality and diversity

Ramparts Interior Contracts,Fit out contractor

Working in occupied premises • Contribution to success in achieving goal of gaining competitive advantage Help with formalising an informal process Ensuring all employees on the same agenda concerning the way to treat clients

Capita Symonds North,Consulting engineers

Benchmarking of performance between offices

• Development of a diversity policy to ensure they get the most from their workforce

Every aspect of how they treated staff

• Identifying areas for improvement – need to be more proactive in dealing with people management

To improve performance and make informed decisions

• Ideas for improvement in connection with recruitment Improvements as evidenced by use of the KPIs Strengthened relationship with one client in particular

London 2012 -

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23 October 2008

What the Business Advocates say (2)

Organisation & Nature of Business

Area of interest Benefits noted

Russell Construction,Regional contractor

To improve employee satisfaction by 10% year on year; also formalisation of staff appraisal system and assessment of management competencies

• Increase in workforce satisfaction of 13%(factors: introduced a reward scheme and overall working conditions) Changes made have improved staff productivity Fewer complaints No reportable accidents Happier workforce

GCP Chartered Architects,

Workforce satisfaction • Help with formalisation of approach to staff communication. Better idea of what staff think – i.e. issues of concern.

• Team is happier With other changes, productivity is up and continuing to improve

EPS Projects,Housing refurbishment contractor

Desire for a consistent performance measurement system

Developing a measurement process was the catalyst for positive change

Plan for growth in turnover • Reduction in sickness absences Increase in staff satisfaction Reputational – winning of awards: has helped then attract new recruits By taking on young people for work experience, they know what they are taking on, and they know the recruits

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23 October 2008

Relevant industry initiatives welcomed

by BERR • Construction Commitments – (Strategic Forum): sign up with follow up action• Respect for People Code of good Health and safety working practice (Strategic Forum): sign up with follow up action• Considerate Constructors Scheme: Sign up with follow up action• Constructing Better Health: participation • Industry improvement agenda: Constructing Excellence, benchmarking etc; involvement with best practice groups • Cross industry apprenticeship Task Force, CITB- ConstructionSkills/SSC programmes

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23 October 2008

Discussion

Ideas/feedback from the floor

• Aspects that delegates are already engaged in – lessons to share • Aspects that are new to people, not currently on the radar• Aspects that could present greatest difficulty• Potential ‘Quick Wins’ – areas not receiving attention, but which could be. What is involved?• Areas that could be looked at for implementation in the medium/longer term• Other issues

London 2012 -

Respect for People

23 October 2008

Website: www.berr.gov.uk Construction Sector Unit: www.berr.gov.uk/sectors/construction/index.html

Clive Young Assistant DirectorSkills and People Policy Construction Sector Unit Department for Business, Enterprise and Regulatory Reform 1 Victoria Street London SW1H 0ET Tel: 020 7215 0866 Fax: 020 7215 6151 Email: clive.young@berr.gsi.gov.uk