ECA News
ECA meets MP leading fair payment campaign
The ECA has met ‘Be Fair – Pay on Time’ campaign founder Debbie Abrahams MP, to
voice its support for her campaign and discuss the issue of late payment. The meeting highlighted the impact of late
payment on electrical contractors and the recent Cabinet Office consultation that would require those working in the public sector to pass payment within 30 days along the supply chain. The ECA says that only main contractors
working on public sector projects that pay subcontractors within 30 days should be permitted to sign up to the Construction Fair Payment Charter, the anticipated successor to the Prompt Payment Code (PPC). Paul Reeve, ECA director of Business Services,
said: ‘We want to see payment practice closely aligned with the aims of recent legislation. We very much welcome the support Mrs Abrahams has given to SMEs with her “Be Fair – Pay on Time” campaign, and we urge the government to take direct action to address this continually damaging problem in our sector.’ Abrahams, Labour MP for Oldham East and
Saddleworth, who recently held a cross-party inquiry into late payment, said: ‘Ultimately a late payment culture is set at board level and won’t change until we establish that late payment, or finding excuses to pay late, is as unacceptable as tax evasion.’
She continued: ‘Following the success of the “Be
Fair – Pay on Time” campaign, and the publicity surrounding the recommendations of the late payments inquiry, the government has started a consultation process. Unfortunately, many people will wonder why it’s taken so long for them to wake up to the fact that this issue is destroying many smaller suppliers across the UK and stifling growth.’ Late payment is one of the biggest problems
faced by ECA member companies. Despite recent government efforts, an ECA survey carried out in January 2014 revealed that just 34.7 per cent of ECA members were paid ‘within 30 days’ by main contractors working on central government projects less than 20 per cent of the time. And 32.1 per cent were only paid in ‘under 30 days’ less than 20 per cent of the time on other public contracts. Reeve continued: ‘Late payment has severe
consequences for firms in our industry. Many businesses have been forced to cut back on investment in equipment or recruitment – including trainees and apprentices – as a result of not being paid on time. In more serious cases, companies have had to cease trading due to cashflow difficulties. We need to create an environment where all organisations are obliged to pay promptly. Doing so would significantly help the industry, and would ensure that firms of all sizes benefit as economic recovery returns.’
Campaigning for fair payment: Debbie Abrahams MP
EU regulations guide available Quick guide to payment solutions launched
Through its participation in the technical task force of the European Association of Electrical Contractors (AIE), the ECA has contributed to a new guide that pulls together country-specific information relating to electrical contracting in European member states and territories: Austria; Belgium; Denmark; UK (England and Scotland); Finland; Latvia; Netherlands; Norway; Portugal; Slovenia; Spain; Sweden; and Switzerland. Information categories for
each country include: General rules for establishing an electrical contracting business Requirements relating
to electrical contracting personnel
Technical standards/ specifications
Inspection of installations Health and safety Contractual and commercial matters
Practical shortcuts on commonly used electrical connections Annex information also
covers national electrotechnical standardisation committees and working on live electrical systems in these European states. The guide can be downloaded
from the Technical Downloads section of the ECA website at
www.eca.co.uk
Getting paid in full – and on time – remains a serious issue for electrical contractors, according to the ECA’s business survey carried out in January 2014. But did you know that half of
the common causes for dispute leading to non-payment can usually be avoided by matching the customer’s requirements with a sound, well-reasoned and clear offer? The ECA has launched a new
two-page Getting Paid leaflet providing clear and practical advice on how you can take steps to ensure you are more likely to get paid on time – from matching
12 ECA Today March 2014
the customer’s requirements on your quotations to understanding the Construction Act, and covering the role of your company’s credit-control strategy and the format of your invoices and applications. The quick guide also outlines
the routes available to electrical contractors if payment is delayed for any reason – from seeking compensation to debt-recovery procedures. ECA members can download
the ECA Getting Paid Guide from the Getting Paid section of the association’s website at
www.eca.co.uk
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