Licensing construction; looking back to look forward

[edit] TrustMark the only UK Government-Endorsed voluntary quality scheme

TrustMark, now the only UK Government-Endorsed Quality Scheme for work carried out in or around the home, is a voluntary scheme that was started in 2005. They have been working to help drive up standards across the industry and improve the protection offered to homeowners when having work done. It is a third-party endorsement scheme rather than a licensing scheme. It operates within a Master Licence Agreement issued by the then Government Department for Business, Energy and Industrial Strategy (BEIS), overseen by an independent board and a network of councils and panels. Tradespeople registered under the TrustMark scheme are required to follow specific business practices, including Framework Operating Requirements, a Code of Conduct, and a Customer Charter. Should a problem arise with a TrustMark tradesperson, customers can contact the organisation to assist with achieving a resolution.

[edit] Licensing domestic contractors: An international perspective from 2013

In 2013, the former Department for Business, Innovation and Skills (BIS) commissioned Pye Tait Consulting to investigate international licensing schemes for domestic contractors to identify the various constituent components of such systems. The report 'Licensing domestic contractors: An international perspective' included descriptions of arrangements operating in Australia, including South Australia (ACT Capital Territory, New South Wales, and Queensland), Europe (including Germany, Denmark, and the Netherlands), and the USA (including the states of California, Florida, New Mexico, and Washington and New York City).

The report concluded on examination that such regimes appeared to benefit all parties, with consumers more likely to regard the industry in a more favourable light with greater confidence in the competence and ability of the tradespersons they employ. Contractors are becoming more competent and confident in their role because of consumer confidence and are able to command higher wages. Operators of the licensing scheme sustain revenues from the administration of tests, licenses, education, and examination fees.

Also in 2013 it was reported that TrustMark was to be relaunched with tougher criteria furrther expanded and with unveiled tougher standards and growth plans 2014 supported by government.

[edit] Nearly 80% of builders and consumers supported licensing in 2018

In 2018 the FMB published an independent research report by Pye Tait entitled Licence to build: A pathway to licensing UK construction, (including references to the previous BIS commisioned report) detailing the benefits of introducing a licensing scheme for the whole construction industry and put forward a proposal for how it could work.

Consumer research undertaken by the FMB at the time revealed the impact poor quality building firms were having on consumers and demonstrated that most home owners supported the introduction of a mandatory licensing scheme. Key results from both pieces of research include:

• 77% of small and medium-sized construction firms support the introduction of licensing to professionalise the industry, protect consumers and side line the cowboys;
• 78% of consumers also want to see a licensing scheme for construction introduced;
• Nearly 90% of home owners believe that the Government should criminalise rogue and incompetent builders;
• Over half of people (55%) who commission home improvement work have had a negative experience with their builder.

At the time Brian Berry, Chief Executive of the FMB, said: “The vast majority of builders and home owners want to see the construction industry professionalised and it is time for the Government to act. It’s unacceptable that more than half of consumers have had a negative experience with their builder. However, we shouldn’t be surprised by this given that in the UK, it is perfectly legal for anyone to set up a building firm and start selling their services without any prior experience or qualifications. This cannot be right given the nature of the work and the potential health and safety risks when something goes wrong. In countries like Australia and Germany, building firms require a licence and we want to see the UK Government regulate our industry in a similar manner.”

Berry continued: “Aside from the obvious health and safety benefits, the advantages of a licensing scheme are manifold. Licensing would bar from the industry the very worst firms operating in the construction sector. Consumer protection would increase and with it, the appetite among home owners to undertake more construction work. We also believe that if we can improve the image of the industry through licensing, young people, parents and teachers will have a more favourable impression of our sector and therefore be more likely to pursue, or recommend, a career in construction. Over time, this would gradually help ease the construction skills shortage we currently face. For too long, the very worst construction firms, most of which undertake private domestic work, have been giving the whole sector a bad name. So that’s why this scheme should be of interest to the whole sector and not just small local builders.”

Berry concluded: “In terms of how the scheme might work, it needn’t be too costly or bureaucratic. Our report draws on the experience of experts from across the construction industry and puts forward a clear proposal. We are suggesting that the scheme covers all paid-for construction work by firms of all sizes, not just those working in the domestic sector. Fees should be tiered and could start at as little as £150 every three to five years, with the largest contractors paying around £1,000 over the same period. In terms of how it’s governed, the licence should be administered by a single authority with a broad range of scheme providers sitting underneath. We are now keen to reach out to the whole construction sector to get their input on the proposal. If we can demonstrate broad support for this approach, we are optimistic that the Government will take it forward.”

[edit] Licence UK Construction (LUKC) campaign

In June 2019, the Federation of Master Builders (FMB) announced the creation of a Construction Licensing Task Force to: ‘...develop a mandatory licensing scheme for all UK construction companies to transform the sector into a high quality and professional industry.’ The Task Force supported by a range of leading industry bodies and chaired by Liz Peace CBE, former CEO of the British Property Federation (BPF). The ‘Licence UK Construction’ (LUKC) campaign was launched.

Liz Peace said: “Mandatory licensing has the potential to transform our industry into a world-leading sector. Licensing will help drive up standards and help address the issue of quality and professionalism, which is some areas, is falling short. At the heart of what we’re trying to do is increase protection for the ordinary person who engages with the construction sector. Indeed, according to research by the FMB, one third of homeowners are so worried about having a bad experience with their builder, they are putting off commissioning construction work altogether. This could be costing the economy as much as £10 billion per year.”

Brian Berry, Chief Executive of the FMB, said: “In countries like Australia and Germany, building firms require a licence and we want to develop a scheme that regulates our industry in a similar manner.”

[edit] Legislation on building safety standards must be underpinned by mandatory licensing

In October 2019 with new legislation regarding the implementation of building safety standards covered by the Queen’s Speech, the Federation of Master Builders announced it needed to be underpinned by a mandatory licensing scheme for all UK construction companies.

Brian Berry, Chief Executive of the FMB, said: “The Queen’s announcement that the Government will bring forward new rigorous laws forcing compliance with building safety standards is an important and essential step in improving safety and confidence in our built environment. After the Grenfell fire tragedy it’s essential that we raise the bar in construction. However, the Government must go further still and publicly consult on a mandatory licensing scheme for all UK construction companies. This would serve to remove from the industry any firm that ignores health and safety procedure and risks safety in and around the built environment. Licensing would also remove rogue traders that bring the image of builders into disrepute, whether they are operating in the private domestic sector or in the supply chain on a large commercial site. We now await further details on this bill and whether it will have the teeth it needs to improve the construction sector.”

[edit] Licensed building companies needed to deliver green construction

In November 2019 in response to the Scottish National Party’s (SNP) manifesto the Federation of Master Builders (FMB) further highlighted that mandatory licensing scheme for UK construction companies is needed to ensure quality in green construction projects.

Brian Berry, Chief Executive of the FMB said: “Reducing waste and carbon emissions associated with our construction industry and our existing housing stock is a matter of urgency if we are to meet the demands of the climate crisis. The Scottish National Party’s pledges to encourage green finance investment in construction and to cut the VAT on energy efficiency improvements in the household are positive steps. We need to go further in ensuring that this programme of work is completed to a high standard. The construction industry has an image problem and one that will hamper growth if not addressed. A mandatory licensing scheme is needed for all UK construction companies in order to raise standards and professionalise the industry, encouraging more young people to choose a career in construction.”

[edit] Task Force trades scheme for TrustMark quality

In November 2020, a Task Force newsletter announced it was moving away from the mandatory licensing system, which was not supported by government, and calling instead for the existing TrustMark quality scheme to be a requirement to qualify for government grant schemes.

The newsletter stated: ‘Largely due to Covid-19, but also in part due to the current government’s reluctance to introduce widespread regulation, it was decided that the campaign should tactically ‘pivot’ in the short term. Instead of wholesale mandatory licensing across the sector, the government should be lobbied to make any government grants schemes for refurbishments and energy efficiency improvements conditional upon the suppliers having an approved quality mark, such as Trustmark. This was already the case with the Green Homes Grants Scheme but should become accepted policy for any further schemes or initiatives.’

[edit] Guide on Licensing UK construction

In November 2022 FMB returned to the idea of a licensing scheme stating 'As it stands anyone can call themselves a builder without proving they have a minimum level of competence. Builders are in a chain of regulated practices: finance to fund projects, architects, insurance, planning permission, building control, even construction products are regulated, but not the user of them. A lack of regulation for the sector undermines all the connected practices that are protected by law.

It published its info guide 'Licensing UK construction'. saying should all building companies in the UK require a licence to build?' In the brief downloadable guide they re-explored

• How a licensing scheme would utilise pre-existing infrastructure to work.
• What other countries already have licensing schemes
• What the FMB is, and has been doing, to push this scheme to Government

FMB said 'We believe this is wrong. We are campaigning for a licencing scheme of the UK construction industry as part of our commitment to standards. Licensing has the potential to professionalise our sector, improve its image, and increase the quality of the built environment. Removing rogue traders from the industry is the best way to deliver the high levels of protection from poor quality builders and tradespeople that consumers deserve.'

This article is based on a number of FMB Press Releases spanning 2013 - 2022 as follows : 'Licensing domestic contractors: An international perspective', 'Nearly 80% of builders and consumers support licensing construction, says FMB, 'Legislation on building safety standards must be underpinned by mandatory licensing', 'Licensed building companies needed to deliver green construction', and 'Downloadable guide on Licensing UK construction'

[edit] Related article on Designing Buildings

• BSI Built Environment Competence Standards
• Builder's licence.
• Builder's insurance.
• Building a Safer Future - Independent Review of Building Regulations and Fire Safety (Hackitt Review)
• Building Safety Act 2022
• Building Safety Regulator
• Building safety in Northern Ireland
• Building safety in Scotland
• Building safety in Wales
• Building Safety Wiki
• Building trust with customers through endorsed trades.
• Competence standards (PAS 8671, 8672, 8673)
• Competence Steering Group
• Contractor.
• Federation of Master Builders.
• Golden thread
• Higher Risk Buildings
• Industry responds to the final Grenfell inquiry report.
• Principal Contractor
• RIBA responds in detail to the final Grenfell Inquiry Phase 2 report.
• Third party accreditation.
• TrustMark.

[edit] External Links

https://www.trustmark.org.uk/homeowner

https://www.fmb.org.uk/