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The need to consider social value The Government has published a new Procurement Policy Note PPN 05/21, a National Procurement Policy Statement that requires contracting authorities in the public sector to ensure procurements support the delivery of wider strategic policy objectives as set out in the Social Value. For the first time the UK Government has established a set of principles that all contracting authorities must have regard to when they procure goods and services, alongside any additional local priorities in their procurement activities. These principles include: • creating new businesses, new jobs and new skills; • tackling climate change and reducing waste, and • improving supplier diversity, innovation and resilience. The PPN also makes a clear statement that delivering best value over the life of the procured asset or service, rather than lowest cost, should be the objective of procurement exercises, and that procurers should take a broad view of what constitutes best value, reflecting policy as set out in the Green Book. PPNs provide guidance on best practice for procurement for public sector organisations, together with supporting documentation. A PPN applies to all central government departments, their executive agencies and non-departmental public bodies in conducting procurement procedures regulated by the Public Contracts Regulations 2015. Commenting on the publishing of this statement, FIS CEO, Iain McIlwee, stated: “It is good to see the vague ‘coulds’ and ‘shoulds’ of politicians turned into requirements in this statement. Procurement has to reward more than price; this Policy Statement is another stride towards a heathier procurement culture that will support transformation in construction.” You can read the Procurement Policy Note PPN 05/21 at www.tinyurl.com/4thyxhye Bank designed to be ‘fully circular’ When this new Dutch office building reaches the end of its life, instead of being demolished, each piece of the structure will be reused somewhere else. The floor can be demounted and the windows covering the façade can be installed in another office. The Triodos Bank building in the Netherlands, was designed to be fully circular. Built primarily from wood, the building was built using 165,312 screws – so if the company ever needs to relocate, or if the office closes, all of the components can be easily disassembled, unlike a steel building that would be welded together and girded with concrete. “We want to maximise circularity in all materials,” says Erik Mulder, an architect at Rau Architects, the Dutch firm that designed the building. Material price inflation drives tender forecast increase In the latest edition of Market View, Mace revises up its forecasts, with tender price growth now expected for this year. Significant material price inflation has resulted in an upgrade to tender forecasts, with Mace’s Q2 2021 UK Market View also giving insight into how the drive for sustainability and net zero carbon has the potential to affect tender prices in the long-term. After predicting that tender prices would drop in the Q4 2020 report, this quarter’s Market View projects tender prices will grow by 1.5% this year, before peaking at 3.5% in 2023. After this, prices will ease in line with the economy, coming down to 2.5% in 2024. The report considers how the increase in the price of products caused by a lack of supply and the volatility caused by the initial lockdown period, alongsideBrexit implications, has impacted tender prices. Despite higher material costs, construction output was 2.4% above its February 2020 level, with the industry now in recovery. Notably, some sectors, such as repair and maintenance and infrastructure, have fared significantly better than others. Private industrial, which is down 27%, and private commercial, which has dropped 10%, serve as clear examples of challenged sectors. As a result, all new work is still lower than 13 months ago. (Turn to page 26 to see more about materials shortages). News 10 www.thefis.org Interior Systems Installer training course The National Construction College (NCC) in BirchamNewton, Norfolk, has scheduled two courses to train apprentices in drylining fixer boarder, interior systems installer. These are block release courses and although the employer will lose apprentices for up to three weeks, when they return to work, they will have been trained in tasks applicable to employers’ needs. The courses start: 1. Week beginning Monday 20 September 2021 2. Week beginning Monday 25 October 2021 For more details contact the NCC on 0344 994 4433 or email ncc@citb.co.uk For more information about apprenticeships or to identify a training delivering organisation visit the FIS Skills Hub at www.thefis.org/skills-hub/apprenticeships-and-qualifications Image by Ossip van Duivenbode, courtesy RAU Architecten