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Coronavirus (COVID-19): “Roadmap to Recovery” for the UK’s construction industry

16/06/2020

The Construction Leadership Council’s (CLC) Covid-19 Task Force has recently published a “Roadmap to Recovery” for the UK’s construction sector, which contains proposals for a post-Covid-19 revival of the sector while setting the industry on a sustainable path towards recovery.

The strategy aims to increase the level of activity across the construction sector, accelerate the process of industry adjustment to the new normal and build capacity in the industry to deliver strategic priorities including adaption of infrastructure post-Covid-19 and industry modernisation.

The CLC’s proposals consist of a three stage, two-year delivery period:

  1. Restart (0 – 3 months): increase output, maximise employment and minimise disruption.
  2. Reset (3 – 12 months): drive demand, increase productivity and strengthen capability in the supply chain.
  3. Reinvent (12 – 24 months): transform the industry, deliver better value and collaboration and partnership.

Specific short and medium term proposals include:

  • Investment in collaborative business models, fairer contracts and payment.
  • Seeking adjudication through the most cost effective process.
  • An immediate economic stimulus to increase workload across the sectors of repair, maintenance and improvement (RMI), infrastructure, construction and housing.
  • Delaying the implementation of the VAT reverse charge for supplies of construction services by one year to October 2021.
  • Flexibility around apprenticeship contributions.

The long term goals include increased skills and productivity, procurement based on an asset’s whole life value, improved building safety, achieving net zero carbon, adopting modern technologies and practices, fairer payment practices, collaboration and safeguarding the industry from future crises.

The CLC’s Covid-19 Task Force is now engaging with the government to test how the proposals might be delivered.

*The information set out in this article is correct at the date of publication (16 June, 2020). The effect of coronavirus on businesses is a fast-changing area and so it is important to obtain legal advice to ensure you are properly protected. Visit our Coronavirus (COVID-19) Hub for more Leading Insights.

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If you have any questions regarding this article or are seeking up-to-date legal advice for the construction industry, contact Alice Toop on 01202 294 566 or email [email protected].

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