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Government considers roll-out of PBAs
THE GOVERNMENT IS CONSIDERING rolling out project bank accounts across its facilities management services, worth an estimated £3bn. The Cabinet Office is said to be looking at it as a way to help eliminate time spent by small businesses chasing payments. A project bank account (PBA) is a bank account held jointly on trust by the employer and main contractor. Funds are paid into the account and then paid directly to contractors, consultants, subcontractors or suppliers. PBAs offer considerable protection to the employer and the supply chain in the event that a main contractor becomes insolvent. Funds can still flow to the lower tier supply chain and the project works can continue, instead of the project coming to a halt while the employer
deals with the insolvent contractor and tries to procure a new main contractor. The government has already earmarked £500m of construction projects that will use these accounts, and this is due to be extended to a further £4bn of work by 2014. Cabinet Office officials have claimed the accounts can shave 2.75 per cent off project costs. Steve Bratt, ECA group CEO, said: ‘ECA is lobbying hard to improve payment arrangements and this includes wider adoption of project bank accounts. We are therefore delighted to hear that government are increasing their usage in line with their stated target, as payment arrangements such as these help to create a stable and effective supply chain, which is ultimately good for everyone.’
ACI targets Westminster
THE APPROVED CABLES INITIATIVE (ACI) is taking its concerns about counterfeit, substandard and defective cable to Members of Parliament as part of its lobby for change regarding the sale of unsafe cable products in the UK. The ACI has mailed a comprehensive information pack about the issue to a selected group of MPs and Select Committees. It contains the ACI’s proposal for legislative change, a selection of media material, information leaflets and BBC footage.
ACI spokesperson Peter Smeeth said: ‘Our focus now is to communicate the scale of the problem to those with the power to develop and change legislation. The industry is being flooded with dangerous and substandard
cable and, without appropriate legislation and the proper funds to support enforcement, the problem will not go away. ‘We need to stop this cable from being
imported and make those who are guilty of this practice understand that they will face penalties for breaking the law. We have spent many months looking at how other countries manage this issue and the US has the exemplar legislation to cover the importation of dangerous goods where the penalties for breaching are far more rigorous than in the UK. ‘We are bringing this to the attention
of key representatives in government and over the next few months will look to them for guidance on how this can be moved forward.’
Carbon emission disclosure compulsory
THE ECA HAS WELCOMED a government
announcement that, from April 2013, all companies listed on main market of the London Stock Exchange will be required to disclose their carbon emissions. The government’s aim is to encourage large companies to become more energy-efficient, potentially saving up to four million tonnes of CO2
by 2021,
according to statistics from the Department for Environment, Food and Rural Affairs (DEFRA). Paul Reeve, Head of Environment at the ECA, said: ‘This announcement is a very positive step. It is clear that some larger companies need coaxing to become more energy- efficient – something that needs to be done soon if the government is to
achieve its ambitious target of cutting carbon emissions to 50 per cent of 1990 levels, by 2025. It’s a shame, however, that the legislation has not been extended to include all companies under the CRC Energy Efficiency scheme. We hope that this will happen when the legislation is reviewed in 2015.’ Reeve added:
‘Regardless of size, all businesses should consider their energy usage, and aim to reduce their emissions. By installing “active” energy saving measures such as smart meters, lighting controls and motion sensors, companies can benefit from quick payback. These are a smart investment for any business looking to cut its costs.’
DIRECTOR SENTENCED AFTER ECA FALSE CLAIM
THE DIRECTOR OF A FIRM THAT falsely claimed to be accredited by the ECA – while bidding for large NHS contracts – has been given a 40-week suspended prison sentence and ordered to carry out 150 hours of community service.
Julian Price, director of Cotswold
Fire Group (CFG), received the sentences after pleading guilty to two
counts of fraud by false representation. According to Construction Enquirer, he had originally pleaded not guilty but changed his plea in March 2012. CFG had won a contract with Gloucestershire Hospitals NHS Foundation Trust to supply and service fire extinguishers across the trust’s sites. Although this contract was terminated by the trust, Price submitted bids for
two other contracts, which turned out to be unsuccessful. In these bids, Price claimed he was accredited by the ECA but submitted an incomplete certificate. An investigation by NHS Direct found Price had not been accredited, and neither he nor CFG had been issued with a certificate. CFG also falsely claimed to be certificated by the Security System
Alarms Inspection Board. Mick Hayes, anti-fraud lead at
NHS Protect, said: ‘In the business of keeping hospitals safe from fire, the NHS and public expect total integrity from contractors. So it is very serious that Julian Price and his Cotswold Fire Group attempted to provide services to the NHS using false qualifications and accreditations.’
July 2012 ECA Today 7
SHUTTERSTOCK / VIOLETKAIPA
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