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INTRODUCTION

Ethical purchasing is becoming more important in UK construction.
It involves buying materials and services from responsible sources.
Companies must consider environmental and social impacts of their purchases.
Workers' rights and fair wages are key concerns in ethical sourcing.
The industry is working to eliminate modern slavery from supply chains.
The government is encouraging ethical practices through its procurement policies.

Benefits:

Ethical purchasing helps reduce risks to a company's reputation.
It can lead to long-term cost savings and improved efficiency.
Ethical purchasing supports the UK's goals for sustainable construction.
It helps construction companies meet their corporate social responsibility targets.

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ETHICAL POLICIES

Strategies for Local Sourcing

Develop a database of local suppliers
Engage with local chambers of commerce
Consider joint ventures with local firms

Local Sourcing and Minimising Transportation

Practical Example: Aggregates

Source from nearby quarries instead of distant suppliers
Use recycled aggregates from local demolition projects

Benefits of Local Sourcing

Reduced transportation costs and carbon emissions
Support for local economy and businesses
Potentially faster delivery times

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ETHICAL POLICIES

Minimising On-Site Transportation

Optimise site layout to reduce material movement
Use just-in-time delivery to minimise on-site storage

Practical Example: Tower Cranes

Strategically position cranes to minimise lifting distances
Plan lifts to combine multiple tasks in one movement

Local Sourcing and Minimising Transportation

Sustainable Transport Options

Utilise rail or water transport for bulk materials where possible
Encourage use of electric or hybrid vehicles for smaller deliveries

Practical Example: Thames Tideway Project

Used barges on the River Thames to transport materials

Reduced road congestion and lowered carbon emissions

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ETHICAL POLICIES

Material Consolidation Centres

Establish local hubs for combining multiple deliveries
Reduce number of vehicles accessing the site

Practical Example: London Olympics 2012

Used consolidation centres to manage deliveries
Achieved 70% reduction in construction vehicle movements

Local Sourcing and Minimising Transportation

Digital Tools for Transport Optimisation

Use route planning software to optimise delivery routes
Implement real-time tracking for better logistics management

Practical Example: Building Information Modelling (BIM)

Use BIM to plan material placement and reduce on-site movement
Coordinate deliveries with construction sequencing

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ETHICAL POLICIES

RECYCLED STEEL

Made from scrap metal, reducing mining impact
Retains strength properties when recycled
Example: The Shard in London used 95% recycled steel

Made from hemp stalks and lime
Carbon-negative material with good insulation properties
Example: Marks & Spencer's Cheshire Oaks store features hempcrete walls

SHEEP’S WOOL

Diverts plastic waste from landfills
Can be used for various building components
Example: MacRebur company uses recycled plastic in road construction

RECYCLED PLASTIC

HEMPCRETE

Natural, renewable insulation material
Excellent thermal and acoustic properties
Example: The National Trust uses sheep's wool insulation in many historic buildings

Use of Sustainable Materials

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ETHICAL POLICIES

RECLAIMED WOOD

Repurposed from old buildings or fallen trees
Reduces deforestation and waste
Example: Olympic Velodrome used reclaimed wood for its exterior cladding

Agricultural by-product with good insulation properties
Carbon-sequestering material
Example: University of East Anglia's Enterprise Centre features straw bale construction

RAMMED EARTH

Fast-growing, renewable resource
High strength-to-weight ratio
Example: Balehaus at Bath uses bamboo flooring

BAMBOO

STRAW BALES

Made from compacted natural raw materials
Low embodied energy and good thermal mass
Example: The Eden Project in Cornwall uses rammed earth in its Core education centre

Use of Sustainable Materials

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ETHICAL POLICIES

Environmental Benefits

Reduces carbon footprint and greenhouse gas emissions.
Minimises waste by using recycled or reclaimed materials.
Promotes biodiversity by reducing the need for virgin resources.

Energy Efficiency

Often provides better insulation, leading to reduced energy consumption.
Lowers heating and cooling costs over the building's lifespan.

Sustainable Materials in Construction - Advantages

Health and Well-being

Many sustainable materials are non-toxic and improve indoor air quality.
Natural materials can create healthier living environments.

Economic Advantages

Potential for cost savings through reduced energy bills.
Local sourcing can stimulate the local economy and create jobs.

Durability and Performance

Sustainable materials often have long lifespans and require less maintenance.
High-quality materials can enhance the overall performance of buildings.

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ETHICAL POLICIES

Aesthetic Appeal

Unique textures and finishes from natural materials can enhance design.
Can contribute to a building's character and charm.

Regulatory Compliance

Aligns with increasing regulations and standards for sustainability.
Helps meet green certification requirements (e.g., BREEAM, LEED).

Sustainable Materials in Construction - Advantages

Market Demand

Growing consumer preference for sustainable buildings can increase property value.
Attracts environmentally conscious clients and investors.

Innovation Opportunities

Encourages the development of new technologies and materials.
Fosters creativity in design and construction methods.

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ETHICAL POLICIES -�Fair Trade In Construction

Agreements promoting ethical sourcing and fair labour practices
Focus on sustainability and social responsibility

Key Aspects of Fair Trade Agreements:

Ensuring fair wages and safe working conditions
Promoting environmental sustainability
Supporting local communities and economies

Practical Example: London 2012 Olympics

Used Fairtrade certified products in construction and catering
Implemented ethical labour practices across the supply chain

Fair Trade Building Materials

Timber: Use of FSC or PEFC certified wood
Stone: Ethical sourcing from quarries with fair labour practices

Practical Example: The Co-operative Group HQ, Manchester

Used Fairtrade cotton in staff uniforms during construction
Sourced ethically produced materials for interior finishes

Practical Example: Crossrail Project

Established working group on ethical sourcing
Focused on ethical procurement of timber, stone, and PPE

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ETHICAL POLICIES -�Abuse of Power

The Competition Act 1998 prohibits anti-competitive agreements and abuse of dominant market position.
Applies to the construction industry and its supply chain.

Types of Abuse of Power

1) Price fixing:

Competitors agreeing on prices to charge clients
Example: In 2009, the Office of Fair Trading (OFT) fined 103 construction firms £129.5m for colluding on building contracts

2) Bid rigging:

Firms agreeing in advance who will win a contract
Example: 'Cover pricing' scandal in 2008 involving 112 companies inflating bids for public contracts

3) Market Sharing:

Agreeing to divide up markets or customers
Example: Suppliers agreeing not to compete in certain geographic areas

4) Abuse of Dominant Position

Using market power to unfairly exclude competitors
Example: A major supplier refusing to supply materials to competitors' customers

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ETHICAL POLICIES -�Abuse of Power

Consequences of Violations

Fines of up to 10% of global turnover
Director disqualification
Damage to company reputation

Compliance Measures

Implementing competition law compliance programmes
Training staff on competition law risks
Conducting internal audits

Leniency Programme

Encourages companies to report cartel activity
First to report may receive immunity from fines

Recent Developments

Increased focus on digital evidence in investigations
Greater emphasis on individual accountability

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ETHICAL POLICIES

COMMUNITY ENGAGEMENT

Consult local residents on project plans
Organise site visits for schools and community groups
Example: Crossrail's Community Investment Programme

Ensure safe working conditions for all site personnel
Extend safety considerations to surrounding community
Example: Tideway's RightWay health and safety programme

HEALTH AND SAFETY

Provide apprenticeships and training opportunities
Partner with local colleges for skills development
Example: HS2's Skills, Employment and Education Strategy

LOCAL EMPLOYMENT AND SKILLS

ENVIRONMENTAL STEWARDSHIP

Implement waste reduction and recycling programmes
Use sustainable materials and energy-efficient practices
Example: Olympic Park's commitment to zero-waste-to-landfill

Social Responsibility

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ETHICAL POLICIES

ETHICAL SUPPLY CHAIN

Implement fair trade agreements with suppliers
Conduct due diligence on labour practices of subcontractors
Example: Balfour Beatty's Supplier Code of Conduct

Support local charities through fundraising or volunteer work
Donate materials or expertise to community projects
Example: Morgan Sindall's annual community day

CHARITABLE INITIATIVES

Promote equal opportunities in recruitment and promotion
Create an inclusive work environment
Example: Mace's Women into Construction initiative

DIVERSITY AND INCLUSION

SUPPORTING LOCAL BUSINESSES

Use local suppliers where possible
Offer mentoring to small local businesses
Example: Willmott Dixon's local spend commitment

Social Responsibility

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ETHICAL POLICIES – �SOCIAL RESPONSIBILITY

Noise and Disruption Mitigation

Implement noise reduction strategies
Maintain clear communication with neighbours about works
Example: Laing O'Rourke's use of off-site manufacturing to reduce on-site disruption

Legacy Planning

Design projects with long-term community benefits in mind
Involve local stakeholders in legacy planning
Example: London Legacy Development Corporation's work post-Olympics

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ETHICAL POLICIES

IMPLEMENT ANTI-CORRUPTION POLICIES & TRAININGS

Develop clear, written policies prohibiting bribery and corruption
Ensure policies are communicated to all staff and subcontractors
Example: Balfour Beatty's publicly available Ethics and Compliance Programme
Conduct anti-corruption workshops for employees at all levels

Create confidential reporting channels for suspected corruption
Protect whistleblowers from retaliation
Example: Carillion's 'Safecall' independent whistleblowing hotline
Thoroughly vet potential partners, suppliers, and subcontractors
Regularly review existing relationships
Example: Skanska's Supplier Code of Conduct and vetting process

ESTABLISH WHISTLEBLOWING PROCEDURES & CONDUCT DUE DILIGENCE

Avoidance of Corruption

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ETHICAL POLICIES

MONITOR HIGH-RISK AREAS

Pay special attention to planning permissions and contract variations
Scrutinise gift and hospitality practices
Example: Network Rail's strict gift and hospitality policy

Implement Building Information Modelling (BIM) for project transparency
Use blockchain for secure, tamper-proof record-keeping
Example: Mace's use of BIM on the Battersea Power Station project

UTILISE TECHNOLOGY

Join industry initiatives against corruption
Share best practices with other companies
Example: UK Contractors Group's Anti-Corruption Forum

ENGAGE IN COLLECTIVE ACTION

PROMOTE TRANSPARENCY IN TENDERING

Use e-procurement systems to reduce human intervention
Publish award criteria and decisions
Example: HS2's transparent procurement portal

Avoidance of Corruption

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GROUP-ASSESSMENT TASK

Create a list of 5 materials frequently used for thermal insulation in buildings. For example: fibreglass, mineral wool, polyurethane foam, etc.

Explain the importance of 'R-value' of insulation materials in building energy efficiency.
Research and record the R-value for each listed material
Consider how this information might influence material choices in building design.

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Purchase Orders

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PURCHASE ORDERS

A Purchase Order (PO) is an official document issued by a buyer to a seller.
It specifies types, quantities, and agreed prices for products or services.
It represents a legally binding contract when accepted by the seller.

Key Components of a PO

Unique PO number
Buyer and seller details
Item descriptions and quantities
Prices and payment terms
Delivery instructions�

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A PROCESS OF ORDERING MATERIALS

Request

Identify material requirements for the project
Create a purchase requisition detailing items needed
Submit requisition to appropriate department or manager
Example: Site manager submits request for 500 sq metres of insulation

Approve

Relevant authority reviews the purchase requisition
Check against budget and project specifications
Authorise or reject the request based on review
Example: Project manager approves requisition for scaffolding hire

Purchase

Generate official purchase order (PO) from approved requisition
Include PO number, delivery details, and payment terms
Send PO to chosen supplier
Example: Procurement team issues PO for 1000 litres of paint to local merchant

Receive

Accept delivery of ordered materials on site
Check items against PO for quantity and quality
Sign delivery note if order is correct and undamaged
Example: Site foreman receives and inspects delivery of electrical cables

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A PROCESS OF ORDERING MATERIALS

Pay

Match supplier's invoice against PO and delivery note
Verify all details are correct
Process payment according to agreed terms
Example: Accounts team processes payment for timber delivery within 30 days

�

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BENEFITS OF USING PURCHASE ORDERS

Clear Communication

Provides detailed record of the order
Reduces misunderstandings between buyer and seller

Budget Control

Helps track spending against project budgets
Allows for easy comparison with quotes and invoices

Legal Protection

Serves as a legally binding document
Useful in case of disputes or discrepancies

Audit Trail

Creates a traceable record of transactions
Supports financial audits and compliance checks

Streamlined Processes

Standardises the ordering process
Facilitates efficient processing of deliveries and payments

Inventory Management

Aids in tracking incoming materials
Supports accurate stock control

Financial Planning

Provides visibility of committed expenditure
Assists in cash flow management

Supplier Relationships

Establishes clear expectations with suppliers
Supports professional and organised interactions

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SELF-ASSESSMENT TASK

You have been tasked with ordering a range of materials for a project:

5,000 lightweight thermal blocks 140mm
8,000 red-coloured facing bricks 73mm
15 steel lintels 2100mm

Tasks:

Calculate quotes using prices from three online building suppliers in the UK.
Then, send a purchase order (PO) to the preferred supplier (Use the PO template provided and upload document on MS Teams).

Other considerations:

Were bulk discounts available?
Did product descriptions vary between suppliers?
What challenges arose during the cost calculation?
List any difficulties you encountered when calculating the costs.

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Atom (2023) Is it time you faced up to ethical sourcing? Available at: https://constructionmanagement.co.uk/its-time-face-ethical-sourcing/ (Accessed: 10 November 2024)
Cemex Ventures (2023) Top 10 sustainable building materials for eco-friendly construction. Available at: https://www.cemexventures.com/sustainable-building-materials/ (Accessed: 10 November 2024)
Construction & Civil Engineering Magazine (no date) 10 sustainable building materials. Available at: https://ccemagazine.com/news/10-sustainable-building-materials/ (Accessed: 10 November 2024)
Designing Buildings Ltd. (2020) Purchase orders in construction. Available at: https://www.designingbuildings.co.uk/wiki/Purchase_orders_in_construction (Accessed: 10 November 2024)
Ellis, G. (2024) Top sustainable construction materials to build a better future. Available at: https://www.autodesk.com/blogs/construction/top-sustainable-construction-materials/ (Accessed: 10 November 2024)
Finity, J. (2024) Construction purchase orders 101: A contractor’s guide to pos. Available at: https://www.procore.com/library/construction-purchase-orders (Accessed: 10 November 2024)
Institute for financial integrity (2024) Corruption in construction: exploring what banks and government agencies must know. Available at: https://finintegrity.org/corruption-in-construction/ (Accessed: 10 November 2024)
Palmers Solicitors (2021) How to fight corruption in the construction industry. Available at: https://blog.palmerslaw.co.uk/construction/how-to-fight-corruption-in-the-construction-industry/ (Accessed: 10 November 2024)
Pearson (2017) BTEC national construction student book. London: Pearson.
Price, L. (2024) Construction purchase orders: full guide. Available at: https://www.tradogram.com/blog/construction-purchase-orders-guide (Accessed: 10 November 2024)
Logan Construction (2024) Corporate social responsibility. Available at: https://www.loganconstruction.co.uk/corporate-social-responsibility/ (Accessed: 10 November 2024)
Minett, A. (2022) Corporate social responsibility in construction. Available at: https://www.chas.co.uk/blog/csr-in-construction/ (Accessed: 10 November 2024)
RSM UK Group LLP (2024) Combat the ongoing rise of fraud and bribery in the construction industry. Available at: https://www.rsmuk.com/insights/advisory/combat-the-ongoing-rise-of-fraud-and-bribery-in-the-construction-industry (Accessed: 10 November 2024)
Sharman, J. (2016) Social responsibility and the construction industry. Available at: https://www.thenbs.com/knowledge/social-responsibility-and-the-construction-industry (Accessed: 10 November 2024)
University of Portsmouth (2021) UK construction sector is 'a building site' for fraud and corruption. Available at: https://www.port.ac.uk/news-events-and-blogs/news/uk-construction-sector-is-a-building-site-for-fraud-and-corruption (Accessed: 10 November 2024)

References/Bibliography