Case Study for Human Rights in Construction Procurement

The Northern Ireland Executive approved Procurement Policy Note (PPN) 05/21 – Human Rights in Public Procurement to ensure human rights considerations are incorporated into contracts when conducting procurement processes.

In the UK the construction sector has traditionally been identified as an area at risk of breaching human rights of workers. This is due to a historical dependence on migrant and unskilled workers. As a result, the Education Authority’s (EA) Commercial Procurement Service (CPS) has reviewed our portfolio of construction contracts and put in place several procedures and actions to ensure the human rights of workers delivering our contracts, are protected.  The EA’s portfolio of construction contracts and works contracts could range in value from a small minor works (£30K) to a new build school (£40M). Design contracts also had a wide range of values.

CPS liaised extensively with internal (infrastructure and capital development department) and external (Construction Employers Federation) stakeholders to develop policies and procedures which ensure compliance with PPN 05/21 and protect the human rights of all workers involved in delivering our construction projects.   

Protection of Human Rights contribute to the Northern Ireland Executive’s vision of “People want to live, work and visit here”.

A human rights-based approach to construction procurement is essential to ensuring:

• EA comply with relevant human rights and modern slavery legislation.
• EA comply with PPN 05/21
• Prevention of potential for human rights violations and abuses are considered in construction procurement strategies 
• Robust contract management procedures contributes to monitoring and reporting on human rights risks

On introduction of PPN 05/21, EA’s construction category council considered how they can further embed this PPN. Template tender documents were reviewed and amended as necessary to ensure compliance with all appropriate legislation. A mandatory tenderers declaration was included for tenderers to declare their compliance.

The category council considered that a similar level of Human Rights risk is present in all works contracts, irrespective of value, for the following reasons –

• EA’s portfolio is procured entirely from NI based contractors so there is a common supply market and mainly a local labour force for all projects.
• Consideration was given to the potential that small projects may have elements of unskilled works and multiple sub-contracts, creating potential for migrant workers to be utilised.
• Construction in NI is a relatively small market and local knowledge of these conditions would potentially result in human right abuses becoming known throughout the industry.
• There is a substantial overlap in contractors carrying out Major Works and Minor Works in Northern Ireland; therefore, if there is a culture of human rights abuse in the company it is likely to be present on all projects.

EACPS researched and examined cases of human rights abuse in the construction industry in the UK and found the following –

• Majority of cases of construction Human Rights abuse in GB were centred on London and Southeast, with migrant labour heavily concentrated in south of England. 
• To date a few large cases of modern slavery have emerged in construction, but vigilance is required due to diverse and multiple tier supply chains.
• Agency workers are particularly vulnerable, with the Operation Cardinas report uncovering an organised crime group exploiting up to 500 Romanians in the London area.  

In determining the EA’s approach to Human Rights in construction, the category council liaised and consulted with the Construction Employers Federation in Northern Ireland for their insight into the NI Construction Market and Human Rights.  It was identified that in addition to the above factors, the following should be considered in assessing Human Rights risk for construction projects in Northern Ireland –

• Lower level of migrant workers in NI compared with GB
• Lower anonymity given smaller geography and population
• Supply chains are familiar and longstanding which reduces likelihood of new persons going unnoticed
• CEFNI have identified modern slavery and human rights as a concern and developed a comprehensive guide for members and supply chains.  

On consideration of all factors and feedback from industry stakeholders, EA considered all EA works projects would be classified as medium risk. Mitigations and actions are now in place to ensure compliance to the PPN including –

• A Human rights policy is in place for every contract
• Compliance is monitored and formally reported on both verbally and in writing at site progress meetings

The category council noted the importance of ongoing monitoring to ensure compliance and noted individual contracts may be reclassified as high risk, at any stage, if circumstances warranted this.

The classification of works contracts as medium risk has ensured a proportionate approach to an important issue. The relevant legislation is firmly embedded in our procurement documents, a human rights policy is in place for all contracts, and human rights are regularly monitored and reported on throughout the contract.

The operation and review of the procedure to date has supported the initial classification of medium risk. Suppliers have demonstrated commitment to the preservation of human rights in their supply chain through provision of robust human rights policies and regular reporting.   

This case study EA demonstrates compliance with Procurement Policy Note - 05/21 Human Rights in Public Procurement. This exercise demonstrates a collaborative approach between internal and external stakeholders to ensure human rights are protected in the provision of our construction portfolio.