VIEWFROM THELOBBY P
ayment has long been an issue for those in the construction supply chain – particularly for contractors in our sector. For some, getting paid
on time can mean the difference between survival and going under. In recent weeks, there has been much talk
of lengthening payment terms, and high- profile cases involving payment periods as long as 120 days – a scenario that is certain to put pressure on most contractors’ finances, especially those lower down the chain. The ECA has been actively representing members’ interests in this crucially important area and, thankfully, payment appears to have been bumped-up the government agenda with the recent appointment of a new construction minister, Michael Fallon. He has put the issue firmly back into the frame, with the resurrection of the prompt payment code (PPC). Introduced four years ago, the code was intended to highlight companies that pay contractors on time. However, ‘on time’ simply refers to the
payment terms outlined in the contract. Effectively, if the contract term states 120 days, then the company promises to
ECACIRCULARS A round-up of recently-released notes to members
MAY 2013 n Circular 79 2013 – Combined socket-outlets with USB. Date published online: 08/05/2013. Category: Technical. n Circular 78 2013 – Expert help with Renewable Heat Incentive (RHI) Applications. Date published online: 08/05/2013. Category: Environment. n Circular 77 2013 – Ian Marsh Award for Outstanding Contribution to the Fire and Emergency Systems Industry. Date published online: 08/05/2013. Category: ECA service updates. n Circular 76 2013 – Peter Greenwood Award for Outstanding Contribution to the Security Systems Industry. Date published online: 08/05/2013. Category: ECA service updates. n Circular 75 2013 – Schneider Golf Tournament. Date published online: 08/05/2013. Category: ECA service updates. n Circular 74 2013 – Paul Reeve to address BCIA National Conference. Date published online: 01/05/2013. Category: Environment. n Circular 73 2013 – Addendum issued to ‘TIA-942-A Telecommunications Infrastructure Standard for Data Centers’. Date published online: 01/05/2013. Category: Technical. n Circular 72 2013 – Ensuring electrical installation trainees are on the correct NVQ. Date published online: 01/05/2013. Category: Training. n Circular 71 2013 – Launch of Certsure. Date published online: 01/05/2013. Category: ECA service updates.
APRIL 2013 n Circular 70 2013 – Staff Agreement: Revisions in staff salaries effective from 1 April. Date published online: 24/04/2013. Category: Employee Relations. n Circular 69 2013 – Product safety notice: MK Sentry Consumer Units and Sentry Switches. Date published online: 24/04/2013. Category: Technical. n Circular 68 2013 – Late Payment of Commercial Debts Act. Date published online: 24/04/2013. Category: Finance matters.
16 ECA Today June 2013
pay – on time – in 120 days. Although this may be speedy in so far as the terms of the contract agreed, it does tend to somewhat stretch the definition of ‘prompt’. While this new injection of life into
the PPC is very welcome, if the code is to become an effective driver towards fair payment, the ECA would like to see more rigour in the PPC process.
Ministerial brief At a meeting with Michael Fallon in May, we discussed ways in which this might be achieved. Rather than companies simply signing-up to their own terms, we believe that, for the PPC to carry any weight or meaning, there should be robust criteria for those wishing to add their name. Thirty-day payment terms were adopted
for central government contracts in 2010 and, more recently, this was extended across the public sector. We recommended to the minister that the code be used to recognise those adhering to 30-day terms – in both public and commercial sectors – as demonstrating ‘best payment practice’. We also called on the government to advise contractors working in the private
n Circular 67 2013 – RICS/ ECA Prime Cost of Daywork. Date published online: 24/04/2013. Category: Finance matters. n Circular 66 2013 – New ‘Tech Bacc’ to give vocational qualifications parity with A-levels. Date published online: 24/04/2013. Category: Technical. n Circular 65 2013 – Small claims upper limit has been revised. Date published online: 17/04/2013. Category: Finance matters. n Circular 64 2013 – New Gate Safe Aware Installer (IOSH) training. Date published online: 17/04/2013. Category: Training. n Circular 63 2013 – Fire detection and fire alarm systems for buildings standard reissued. Date published online: 17/04/2013. Category: Technical. n Circular 62 2013 – Update on product shortage issue: BS EN 54-23:2010 Fire detection and fire alarm systems. Date published online: 17/04/2013. Category: Technical. n Circular 61 2013 – List of Registered Member businesses for sale now available. Date published online: 17/04/2013. Category: Buying and selling a business. Circular 60 2013 – Travelling light: LIA’s regional seminar programme 2013. Date published online: 10/04/2013. Category: Technical. n Circular 59 2013 – SEC Group publish briefing on the supply chain finance initiative. Date published online: 10/04/2013. Category: Finance matters. n Circular 58 2013 – New Tavcom Training prospectus for PC & mobile. Date published online: 10/04/2013. Category: Training. n Circular 57 2013 – BSI publishes revised PAS 91. Date published online: 10/04/2013. Category: Pre- qualification. n Circular 56 2013 – Subscribing to ECA’s online Standards library could save you thousands. Date published online: 03/04/2013. Category: Technical. n Circular 55 2013 – SEC Group publishes updated version of their ‘First Steps to BIM Competence’ guide. Date published online: 03/04/2013. Category: Tendering and contract administration. n Circular 54 2013 – Please report any concerns about HSE’s ‘Fee for intervention’. Date published online: 03/04/2013. Category: Health and safety.
by CarolWrench, head of Communications
sector that, from 1 October 2013, only those that contract to pay within 60 days, without financial penalty or additional interest or charges, will be able to sign-up to the PPC. This aligns the code with the intent of the EU late payment directive, which was recently implemented into UK law. We would like to see current signatories who don’t meet this requirement removed from the PPC and, from 1 March 2014, those that still refuse to adhere to these terms should be named and shamed.
Fair play Last, but by no means least, we contend that to be fair, it should not only be mandatory for those benefiting from 30-day payment terms on public sector contracts to sign-up to the code, but that they should also share best practice by passing on 30-day terms to their sub-contractors – as is the case for central government contracts. We hope that the minister will take on
board our recommendations, which we believe could have a significant, positive effect on the number of organisations signing-up to the PPC – resulting in a beneficial impact on the supply chain.
n Circular 53 2013 – ECA welcomes Government response to Richard Review. Date published online: 03/04/2013. Category: Training. n Circular 52 2013 – Have you booked your tickets for the Electric Event? Date published online: 03/04/2013. Category: ECA service updates.
MARCH 2013 n Circular 51 2013 – Sale of an ECA member business. Date published online: 27/03/2013. Category: Buying and selling a business. n Circular 50 2013 – Product shortage issue: BS EN 54- 23:2010 Fire detection and fire alarm systems. Date published online: 27/03/2013. Category: Technical. n Circular 49 2013 – Changes to qualification requirements for Part P QS from 6 April. Date published online: 27/03/2013. Category: Training. n Circular 48 2013 – ECA’s technical helpline number is changing. Date published online: 27/03/2013. Category: Technical. n Circular 47 2013 – Tax refunds for ECS cardholders continue. Date published online: 20/03/2013. Category: Finance matters. n Circular 46 2013 – ECA members first to hear about plans for ISO 14001. Date published online: 20/03/2013. Category: ECA service updates. n Circular 45 2013 – Increases in rates of Statutory Maternity, Paternity, Adoption and Sick pay from April 2013. Date published online: 20/03/2013. Category: Employee Relations. n Circular 44 2013 – HSE document review: GS38. Electrical test equipment for use by electricians. Date published online: 13/03/2013. Category: Technical. n Circular 43 2013 – Proposed Changes to First Aid at Work: HSE want your views. Date published online: 13/03/2013. Category: Health and safety. n Circular 42 2013 – CIC issues BIM legal Protocol. Date published online: 13/03/2013. Category: Tendering and contract administration. n Circular 41 2013 – Changes to Part P of the Building Regulations. Date published online: 13/03/2013. Category: Technical. n Circular 40 2013 – PAS 91 pre-qualification questionnaire being revised. Date published online: 06/03/2013. Category: Pre- qualification.
n Circular 39 2013 – New BSRIA Publication: Seasonal Commissioning (BG 44/2013). Date published online: 06/03/2013. Category: Technical. n Circular 38 2013 – European Union vows to kick-start low-carbon automotive industry. Date published online: 06/03/2013. Category: Environment. n Circular 37 2013 – ECA publishes Government’s solar PV ‘Bible’. Date published online: 06/03/2013. Category: Environment.
FEBRUARY 2013 n Circular 36 2013 – Less than a month left to apply for Regional Growth Funding. Date published online: 27/02/2013. Category: Finance matters. n Circular 35 2013 – ECA secures positive HSE response on asbestos training. Date published online: 27/02/2013. Category: Health and safety. n Circular 34 2013 – Government urges sub-contractors to expose poor public sector payment practices. Date published online: 27/02/2013. Category: Finance matters. n Circular 33 2013 – ECA Edmundson Awards: Last day to enter. Date published online: 27/02/2013. Category: Training. n Circular 32 2013 – ECA Registered Member Awards: deadline for entries extended to 15 March. Date published online: 27/02/2013. Category: ECA service updates. n Circular 31 2013 – Solar Power UK Roadshow. Date published online: 20/02/2013. Category: Environment. n Circular 30 2013 – Gain certified recognition as a CIBSE Low Carbon Consultant: DECC-subsidised. Date published online: 20/02/2013. Category: Training. n Circular 29 2013 – New 60GHz Addendum to WiFi Standard 802.11. Date published online: 20/02/2013. Category: Technical. n Circular 28 2013 – Join our list of winners in the ECA Edmundson Awards. Date published online: 20/02/2013. Category: Training. n Circular 27 2013 – Enter now for the Innovation in Contracting Award. Date published online: 20/02/2013. Category: ECA service updates.
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