C O N S T R U C T I O N E M P L O Y E R S F E D E R A T I O N T H E V O I C E O F T H E I N D U S T R Y
MARK SPENCE, MANAGING DIRECTOR OF THE CONSTRUCTION EMPLOYERS FEDERATION, WELCOMES GOVERNMENT SUPPORT ON MATERIALS COSTS AND LOOKS TO THE FUTURE OF THE INDUSTRY… Beyond thematerials crisis
Mark Spence, CEF Managing Director
T he industry has spoken, and, to be fair, the NI Executive has heard, listened and produced a set of principles for assisting construction through this tumultuous period. Since raising the issue of rising costs at the Procurement Board in February, CEF has been pushing the materials agenda in the media and across devolved government to the point where in the closing days of June a draft paper was shared by the Department of Finance as an enabler to public sector clients to begin to entertain the claims of contractors. The final Procurement Advisory Note 01/21 with some, but not all, amendments was released with fanfare in late July by the Finance Minister Conor Murphy, whose very considered statement recognised the stress
the current situation places on contractors.
make allowances for inflationary prices. This will provide vital support to our construction industry which will play a key role in our economic recovery while also ensuring important government projects such as schools, hospitals and infrastructure projects are delivered.” Crucially, this PAN was endorsed by the Executive, so every Department and the CoPEs that sit under those Executive Ministers is obliged to implement the Note. This is a key difference from previous guidance notes issued by Dept of Finance and gives contractors a consistency across government that has often been elusive. Is PAN 01/21 comprehensive and does it fully restore the costs absorbed to date by contractors? No. But it does represent the
Minister Murphy said: “Covid-19 has had a huge impact on the availability of construction materials, with global demand, product shortages and delivery delays leading to market
volatility and increased prices. “Government contractors are
experiencing escalating costs and delays in getting materials which they could not have foreseen when they tendered for government work. I have listened to the concerns of the construction industry and want to do everything in my power to ensure there is no risk to the completion of important projects. “I am pleased the Executive has agreed my proposals to make provision to manage delays in supplies and to include mechanisms in existing and new contracts to
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