The Green Deal for Small Firms


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Presentation given by FMB Head of training Hayley Fry to Be2camp seminar on The Green Deal, in London on 17 November 2011.

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  • Because we believe it will be a revolution – even if it starts quietly next OctoberFMB has been running the FLASH small builders network & I will talk a little bit about that although I know Gay will be saying more about FLASH later, so I’ll be brief.And as everyone here is interested in using modern methods of communication, I thought you’d be interested to know a little bit about how the Federation of Master Builders is beginning to move into that world.
  • So concerns, as well as the tight timetable, include incentives – we think there is also a need for a VAT cut on relevant work, perhaps reductions in council tax, and or stamp duty, so that it becomes more attractive – but also potentially more complex? Concern about domination of large companies is partly because that’s not in our members interests of course, but it also represents a huge lost opportunity.
  • Other concerns are about project management – set of individual installers, but who is the person with thermal literacy who will ensure coordination of different trades, particularly for more complex projects, traditional buildings etc. Could we be storing up problems re ventilation & moisture control? Members don’t want to work as sub-contractors to Tesco etc – ask farmers about that. They are after all ‘Master Builders’ and some are not attracted by the idea of becoming an ‘installer’ for specific measures only.
  • Biggest concern is about lack of knowledge & skills in the industry – not just talking about buildings here – building cycle shows how many different trades & professions are involved and will need to understand what’s involved in making a building more energy efficient. A Builder may be dealing, as well as with client and architect, but also building control, planning, and potentially a green deal assessor – are they all going to be in harmony – unlikely!
  • When we’re looking at skills for builders there are specific concerns – need for multi skilling and project management skills.Industry is fragmented in it’s approach to training – in fact culture of valuing formal training and qualifications is changing slowly.The industry is really struggling financially, particularly the small businesses, and particularly the further north in the country that you go. They don’t have the money to invest in training – short-term, reactive financial cycles, not long-term planning.
  • So that’s a lot of negatives, what about the positives. FMB has taken the view that we need to be at the table getting involved and influencing the Green Deal so that our members can benefit. So we have been contributing to the Green Deal Fora on Capacity and Innovation, and on the PAS 2030 consultations etc. Also FMB in partnership with ConstructionSkills is developing the draft minimum standards of technical competence which will need to be established – based on the NOS. Work recently started on that – until that’s in place we can’t ‘set the bar’ for Green Deal installers.
  • There has never been a recognised qual for gen builders which would win them additional work – we see this as an opportunity for members to differentiate themselves in a crowded and un-regulated market – taxi driver – members really want to see higher standards – bad news stories bring the whole industry down. Short courses for experienced workers – no need for a ‘gap year’ – what they need is additional knowledge about the energy efficiency of buildings & how that works, not re-skilling. Our application to run a CPS goes in to CLG in December, covering the fabric of the building – would allow members to self-certify their work to insulate solid walls floors & roofs (including solid walls), provided they can meet the required standards by site inspection and qualification. Also applying to UKAS to become a certification body compliant with EN 45011, so that we can certify members as Green Deal installers too. (April 2012) currently going through an audit process on that. Ongoing CPD on building regs (required for CPS) but also customer service, contractual awareness, need right policies and procedures etc.
  • We are talking about carrots being offered under the green deal – members choice whether to take part or not. However, at a recent meeting with Ian Drummond at CLG FMB learned that the Building Regs Part L consultations expected in December ARE likely to include consequential works, but only if covered by the Green Deal to offset the cost. Finally – we see this as a springboard towards professionalism in the sme sector – indeed our long term strategy has been to drive up standards, for example about 18 months ago we introduced mandatory site inspections of work for all new members, which was welcomed by the members who tend to be proud of what they do and want to be able to set themselves apart. All of our members can now offer insurance-backed warranties on the work that they do, and are backed up by our robust dispute resolution procedure which includes indpendent adjudication via a RICS scheme.
  • Anyone here who works for an SME based in London is welcome to join – all the events are free contact us! And FLASH+ in South East outside of London
  • FMB started in 1941 with Regional & branch hierarchy – still the same system of members elected by show of hands at branch meetings, but these are less well attended, some dormant – decided we needed to move into 21st century and use all methods of communication we could with our members. Demographic gap in construction – around the 40s and 50s – we seem to have a lot of older, and a lot of younger members – gap inbetween causing problem re handing on the baton of leadership in local branches & regional & national committees.
  • The Green Deal for Small Firms

    1. 1. The Green Deal for Small Firms Thursday 17 November 2011 Hayley Fry Head of Training Federation of Master Builders The voice of construction SMEs
    2. 2. The Green Deal for Small Firms• The Green Revolution• The FLASH experience• FMB’s Social Networks The voice of construction SMEs
    3. 3. The Green Revolution • UK legal commitment to cut carbon emissions by 80% • 85% of existing homes will still be standing in 2050 • 26 million homes need to be retrofitted + 2 million non domestic buildings • Scale is unprecedented both in terms of challenges and opportunities • Potential to create new jobs and stimulate economy The voice of construction SMEs
    4. 4. Retrofit Market FMB research commissioned from Oxford University New market for construction SMEs - £3.5 billion to £6.5 billion per annum But......... • Absence of strong consumer demand • Absence of a clear delivery plan • Absence of knowledge and skills The voice of construction SMEs
    5. 5. The Green Deal – Customer Journey • ADVICE – All households/smaller businesses entitled to an energy assessment from a qualified assessor. An enhanced EPC • FINANCE – a finance mechanism that will enable the cost of installed energy efficiency measures to be paid back via the customer’s energy bill The voice of construction SMEs
    6. 6. The Green Deal – Customer Journey • INSTALLATION – only accredited installers allowed to install measures. Designed to give consumer confidence • REPAYMENTS – a charge will be added to the energy meter at the property. Repayment obligation will stay with the property and will transfer to any new occupier The voice of construction SMEs
    7. 7. The Green Deal - Legislative Timetable • Energy Bill receives Royal Assent - autumn 2011 • Formal consultation on secondary legislation - autumn 2011 • Secondary legislation laid before Parliament - early 2012 • Detailed industry guidance - spring 2012 • Green Deal launched in October 2012 The voice of construction SMEs
    8. 8. Green Deal Concerns • Householders won’t find it sufficiently attractive • Australian experience – need for accredited builders • High street retailers/energy companies dominating the market • Only Green Deal Providers will have direct link with the client The voice of construction SMEs
    9. 9. Green Deal relationships.............Key relationships ASSESSOR PROVIDER INSTALLER CUSTOMER The voice of construction SMEs
    10. 10. Installation: Business ModelsEPC+ Measure Assessment Product assessment/quote and SME Installer Information (locally sub- to: contracted to a Energy Comp GD provider) Finco schedule of works Installer SME Installer Oversight (acts Body independently Customer selling service, Installation obtaining finance through third party) One-Stop Information to: GD One-stop GD Provider Provider The voice of construction SMEs
    11. 11. Buildings Cycle The voice of construction SMEs
    12. 12. Involving Small Firms: Skills• Existing skills approach is ‘trade based ‘and not ‘outcome based’• Numerous skill and industry organisations• No comprehensive, coherent system of qualifications• No train the trainers system in place• Lack of available investment funds• No accreditation of builders !! The voice of construction SMEs
    13. 13. FMB Rising to the ChallengeWorking Across the Construction Sector• Meetings with other Trade AssociationsEnergy Bill• Lobbying MPs to set clearer targets and consider the issue of demandFMB Working with Government:• Capacity and Innovation Forum • access to the market for SMEs• Accreditation and Skills Forum • Code of Practice for installers • PAS 2030 The voice of construction SMEs
    14. 14. FMB Options for the Future • Springboard to drive professionalism and standards • A qualification for general builders – a first! • Competent Persons Scheme application • Talks with GD Providers • Training for experienced workers – additional knowledge • Ongoing CPD requirements The voice of construction SMEs
    15. 15. So to conclude ...................• Green Deal offers opportunities and threats to construction SMEs• Incentives will be needed to create demand for Green Deal• Training required in the whole construction sector• Threat of more regulation – consequential building works• FMB needs to reposition itself and take the lead in driving up standards The voice of construction SMEs
    16. 16. The FLASH experience• FMB = Small builders ‘FLASH’ network• Partnership with Institute for Sustainability• Business case for low carbon• 100+ small firms registered in London• Forthcoming Events: • 7 December: Introduction to Retrofit (focus on traditional buildings) • 13 December: Essentials of Renewable Energy • 20 December: FITs The voice of construction SMEs
    17. 17. The FLASH experience! The voice of construction SMEs
    18. 18. The Social Media Challenge: FMB’s response• Democratic Governance Structure requires member engagement• Traditional communication methods• FMB Social Networking site;• Groups• Twitter • @Hayley1961 • @fmbuilders The voice of construction SMEs
    19. 19. The FLASH experience! The voice of construction SMEs
    20. 20. The voice of construction SMEs
    21. 21. Thank you ...................For more information contact:Hayley FryHead of TrainingFederation of Master Builders14-15 Great James StreetLondon WC1N 3DPE: 020 7092 3875W: The voice of construction SMEs