Construction companies are making a big push to have the construction industry legally recognised as a business, with a government proposal to legalise them.
It comes after the Department for Business, Innovation and Skills (BIS) released a report claiming that up to a quarter of construction companies are not recognised as legitimate employers.
Construction is a booming sector in the UK, with an estimated £6.7bn worth of projects expected to take place in the year 2020.
But with thousands of new buildings due to be built across the country every year, the government is considering legalising construction as a legitimate activity.
The Government has proposed legalising this form of business in order to give more certainty to new construction companies that are struggling to get on the ground.
The BIS, which has a new role in the sector, is proposing to legalising “building industry organisations”.
The move follows an increase in new construction contracts for companies with fewer than 100 employees in recent years, with many of these projects in the construction sector expected to be completed by 2019.
The proposed change will be welcomed by the construction trade, which is increasingly becoming a recognised industry in the country.
“Building industry organisations represent the next generation of builders,” said John Ritchie, managing director of London-based construction consultancy the Ritchie Group.
“The rise of construction as an investment vehicle is encouraging to those who believe in the future of this industry and that it will continue to deliver a solid future for UK industry.”
Construction industry organisations will now be recognised as such and will be able to get their business recognised as an industry.
The companies that will be recognised will be required to publish their financial statements, provide detailed accounts and give evidence to the BIS.
The legalisation of construction will have a big impact on the construction workforce, who will have to work harder and longer hours to meet the demand.
Construction firms have been growing at an impressive rate in recent decades, and many of them are still struggling to compete with the growing cost of the construction boom.
“We have seen this trend accelerate with the increasing use of high-speed trains and planes,” said Paul McKeown, a partner at London-listed construction company Ritchie.
“These companies are able to make money by offering their services on time and at a price that meets their clients’ needs, rather than having to compete against other companies in the space.”
He said it was a win-win for all parties involved, with the industry having a stable source of income, while the Government getting a better understanding of what the industry actually is and the industry’s business model.
Construction companies in Scotland have been in a tough spot for some time, as their workers have to be in the same building for the duration of their contracts, and are not paid a living wage.
“This is the first time that the building industry will be officially recognised as the property of a company,” said Alex McElvoy, director of the Scottish Construction and Forestry Association.
“Construction is a big industry in Scotland, but it is still very competitive and still has a long way to go.”
McElloy said he hoped the change would “help the industry survive and thrive”.
The construction industry is a growing business in Scotland The Scottish Government is hoping to secure the support of the Construction Industry Association of Scotland (CICA), which represents the sector.
CICA said it supported the change to recognise construction companies as legitimate business, saying: “The BIS report highlighted that there are currently around 3,000 building industry organisations in Scotland and that more than 100,000 of these organisations are small businesses.”
The group is currently supporting the construction of a new stadium in Edinburgh.
It is also supporting the development of a rail link to the Scottish capital and the construction on the new Scottish National Stadium.
In the past, the Scottish Government has supported the construction industries.
“It is a great opportunity for the Scottish construction industry to be recognised by the Government as an independent industry,” said Ritchie of the Ríordáin group.
“There are huge potential benefits for both the local economy and the UK economy.”
He added: “We look forward to working with the Scottish government to see if the construction companies can get on board the bandwagon and take up their new role as an important part of the UK construction industry.”
The Scottish government has also published a draft Bill that will make it easier for the construction and management sector to get recognition.
The draft Bill will make the building sector more transparent and give it the chance to demonstrate its expertise and value to the public.
It will also allow the building and management industry to obtain a licence to operate in Scotland.
The government is expected to publish the final draft of the Bill this summer.
Building industry association boss David McEfford said: “Our support for the building of a world-class stadium in Glasgow and the creation of the National Stadium has been an incredible success for the sector over the