A new £250,000 fund to support small and medium sized businesses working in the construction sector across Wales was announced last week by Edwina Hart AM Minister for Economy, Science and Transport.

The Construction Sector Development Fund is now open for expressions of interest and will provide grants up to a maximum of £50,000 or 50% of the eligible costs of projects. The minimum grant payable is £5,000.

The Minister said:

”We have a large number of small and medium sized enterprises working in the construction sector that make a significant contribution to the Welsh economy. The Fund is designed to help these enterprises increase their competitiveness, win new business and help grow the sector.

“There are many opportunities developing in nuclear energy, renewable energy and rail infrastructure projects across Wales for example, and there are likely to be significant supply chain opportunities for SMEs in the construction sector as a result.

“We want SMEs in Wales to be in a position to access opportunities, and the fund can assist them improve their capacity and capability, help them gain specialist accreditation or buy equipment.”

Companies are initially asked to complete Expressions of Interest (EOI) forms, which will be assessed to determine eligibility before submitting a full application.

Applicants will need to demonstrate that projects can be completed and grants claimed by 31 March 2014. More information about the fund and EOI forms are available by visiting the Business Wales website or calling 03000 6 03000

Would it help your business to know how much construction work your local authorities in Wales are planning to deliver over the next 3 years? 

The construction industry in Wales is heavily dependent on local authority highway and construction programmes. However, for many, the visibility of these programmes is shrouded in mystery and as a result the ability of Welsh construction businesses to prepare for these opportunities is severely hampered by this lack of visibility. The ability of Welsh local authorities to strategically plan collaborative operations is similarly hampered through a lack of knowledge about their neighbours’ plans and, in some cases, other departments in the same local authority. Thankfully this is all about to change! 

When the Minister for Finance and Leader of the House formally launched the Constructing Excellence in Wales “No Turning Back” report in October 2010 she created a cross sector construction industry steering group to respond to the recommendations. One of the key issues was the industry’s need for greater visibility of future construction programmes and clarity over public sector capital programme spend. In response to this Constructing Excellence in Wales has been working with all Welsh local authorities to pull together their capital programmes and present these in one single document spanning 3 financial years – and to roll this forward year on year.

Whilst the data represents a huge step forward in terms of visibility to the construction industry and other local authority clients there are further opportunities to improve this data. We would like your views on what improvements you would like to see.

The report containing the capital programmes of all Welsh local authorities for 2013-2017 is now available via this link to the Constructing Excellence in Wales website. The data is presented in a booklet format and can be viewed either on a regional or sectorial basis.

The following survey is aimed at addressing areas of concern regarding the programme and for respondents to offer feedback on they feel the programme is progressing. Your responses will be kept confidential within CEW & Value Wales and your opinions will help to formulate how we develop the capital programme in the future.

Please complete the CEW's Local Authority Capital Programme Survey

A new and quicker way of paying businesses in the public sector construction supply chain in Wales was unveiled yesterday by Finance Minister, Jane Hutt.

The construction sector in Wales is dominated by small to medium enterprises (SMEs), many of whom play important roles in delivery of public sector projects through sub-contracting arrangements. Many of these businesses are dependent on main contractors ensuring fair and prompt payment through the supply chain.

Project Bank Accounts (PBAs) are ring-fenced bank accounts whose sole purpose is to act as a channel for payment on construction projects to ensure that contractors, key subcontractors and key members of the supply chain are paid on the contractually agreed dates. This eases cash flow pressures for business and supports closer working within the supply chain.

At least three potential PBA pilot projects have been identified with Flintshire, Swansea and Torfaen Councils all identifying at least one project from their 21st Century School programmes to adopt the PBA approach.

Jane Hutt said:

“Boosting economic growth and creating jobs in the Welsh economy is a priority for this government.

“SME’s are a vital part of the construction sector in Wales, and many play critical roles through the supply chain in delivering our public sector construction contracts. Access to finance and cash flow are vital to smaller sub-contractors and it is only fair that they receive prompt payment in accordance with contract performance.

“I am grateful to the Specialist Engineering Contractors’ group in Wales for their enthusiastic support in helping inform our approach to introducing the use of Project Bank Accounts in the Welsh public sector.

“The use of PBAs is an innovative way of ensuring fair payment throughout the supply chain within construction contracts, and will ensure that both main and sub-contractors are paid promptly for works performed.

“This is another example of my commitment to using public procurement policy to enable smaller businesses to prosper through delivery of contracts in Wales.”
The Construction Procurement Strategy, which was launched by the Finance Minister in July 2013, made a commitment to introduce PBA’s into Welsh public sector construction contracts as a means to promote fair payment. Professor Dylan Jones-Evans’ Access to Finance Review, which was commissioned by Economy Minister Edwina Hart, also recommended that the Welsh Government should use its purchasing power in Wales to encourage its suppliers to pay their own supply chain promptly.