Farmer Review: Government urges industry to ‘step up’

In its official response published today, the Department for Business, Energy, & Industrial Strategy (BEIS) addressed the 10 recommendations made by industry consultant Mark Farmer’s Modernise or Die report last October. 

BEIS said it is “keen to see closer working between the construction industry, its clients and government”. 

In its response, the department offered backing to many of Mr Farmer’s recommendations. 

BEIS said it agreed the CITB needed to be reformed, having indicated last week that the training body should be retained. 

It went on to stress that if the industry did not vote to support the CITB’s proposals then it may have to close, and urged the CLC to “consider how it might inform the industry’s thinking about the consensus process”.

The government backed the Construction Leadership Council (CLC), of which Mark Farmer is a part, as having a “key role in leading change in the industry”.

It said the CLC should “continue to develop better models of client commissioning”, with an “emphasis on building longer-term collaborative relationships and utilising technology to improve performance and productivity”. 

On BIM, the government said it will “continue to take a lead in driving the adoption of BIM through its procurement practices and creating greater digital transparency”. 

The department also emphasised that it was “important the industry presents a positive image to encourage new entrants”. 

However, BEIS rejected a recommendation to introduce a charge on construction industry clients to “influence commissioning behaviour” and “supplement funding for skills and innovation”. 

BEIS said: “Government agrees that involvement of the construction industry’s clients in addressing underinvestment in skills and innovation is crucial to improving the sector’s productivity.

“However, the introduction of a client charge to encourage and fund modernisation could risk damaging developer confidence and increasing costs, at least in the short term.”

In a letter to CLC co-chair Andrew Wolstenholme, ministers Lord Prior, Alok Sharma and Anne Milton said the government has already incorporated some of Farmer Review findings into policy. 

The letter concludes: ”The challenging context of an ageing workforce, alongside the need to deliver a step-change in housing quality and output and major infrastructure improvements, highlights the importance of rising to this challenge.

“We are therefore keen to understand from you how you can best address this and drive improvement – matching the scale of the challenge with a commensurate response.

“We look forward to hearing your thoughts on how CLC will lead on this agenda in collaboration with the wider sector.” 

Mark Farmer, who is the chief executive of construction consultancy Cast, said: “I am delighted with the government’s positive response to the findings and recommendations set out in my review.

“I recognise that driving industry change is a long haul but with a supportive government, both acting as an intelligent public client and in terms of setting wider policy, this can only help realise my vision of a modern and fit-for-purpose construction industry.

“I also feel that industry itself is becoming increasingly aware of the unprecedented challenges it now faces and I believe this ‘burning platform’ is starting to accelerate its own thinking in how it embraces modernisation, albeit this also needs to be supported by the clients that the industry serves.

“A modern, robust construction sector that is innovative, forward-thinking and ultimately more productive and predictable, is vital to deliver on the government’s ambitious housing targets, as well as large-scale infrastructure projects such as HS2 and Hinkley Point.”