The Construction Leadership Council has written to Prime Minister Boris Johnson calling on the Government to provide “clear support and recognition” for the essential work the construction sector is doing and the role it is playing in supporting public services and keeping the economy functioning.

The letter from Andy Mitchell, Co-Chair of the Construction Leadership Council, which is copied to Chancellor of the Exchequer Rishi Sunak, Secretary of State for Business Alok Sharma MP and Nadhim Zahawi MP, Construction Minister, says:

“For understandable reasons, we are seeing the closure of key construction product and material manufacturers, in parallel with the closure of electrical, plumbing and general builders’ merchants, and there is the very real prospect of many of the essential works not being able to be done, or unduly delayed, by difficulties in securing products and materials.”

The letter also draws attention to the fact that most construction businesses, from the largest public company to the smallest SME are “highly dependent on free cashflow” and sets out a range of which would “make a huge difference” to many companies within the industry, including:

• Suspending PAYE and CIS tax due to HMRC in April and May for construction and consultancy firms and workers, with no financial penalty.
• Deferring/cancelling Apprenticeship Levy payments due for the duration of the crisis.
• Encouraging all public sector clients, regulated utilities and firms in the private sector working on public infrastructure to expedite cashflow through the supply chain, by making use of these.
• Support for the Directors of micro-businesses - the many directors of small building firms and consultancies who pay themselves a small salary, and top this up through dividend payments.
• Retention release - it is estimated that throughout the industry there is £4.5bn held by clients and firms in the supply chain) in the form of cash retentions, which is a routine withholding of between 1% to 5% of each regular payment to be released upon successful completion of the works without defects.
• Extending the £25k SME business continuity grants scheme to the construction sector

Construction sector sets out guidance to supply chain on safe operating procedures

The construction sector itself, including the Council and CEOs of the 11 leading federations and representative bodies from across the construction industry, have worked together to publish and adopt a number of documents for use by the supply chain during the coronavirus crisis:

• Site Operating Procedures – practical range of measures for construction sites to comply with Public Health England’s guidance on distancing and hygiene;
• Safe Shutdown Process –  guidance to site managers when it is deemed not possible to continue work, and which we plan to supplement with guidance on restarting work quickly and efficiently;
• Minimum Essential Works List – which seeks to identify the sorts of works that need to be allowed to continue in almost any circumstances – for example critical works necessary to continue the safe provision of essential services, works critical to the efficient running or expansion of efforts in response to Covid-19 and works necessary to protect the safety of the public or assets.
• Covid19 Essential Worker Authorisation Letter – which sets out to provide construction employees the evidence that they require to be able to continue their essential work

The sector has also launched an appeal to the industry to donate surplus Personal ProtectivenEquipment (PPE) to the NHS.

Click here to read the letter in full