POOL & SPA INDUSTRY
Stakeholder Account Gives Peace of Mind
I
t is always very reassuring for members of both SPATA and BISHTA when the respective Trade Associations can provide services that are good membership benefits and this is even more so, when the service is usually free! That is the case for the Stakeholder Account.
The Stakeholder Account (which is a form of escrow account that can be offered by SPATA and BISHTA members to their customers, or in some cases, their suppliers) is one of a number of benefits designed to assist companies with their day to day business needs.
The account is very attractive to members because it allows them to liaise with their customers and after making a tailor-made formal agreement about what work or service is to be provided, the monies are deposited with SPATA or BISHTA. The member knows that the money is safely deposited with the Trade Association and so once the work is completed satisfactorily, the payment(s) will be released, without undue delay. The formal agreement is provided through some resources produced by both Trade Associations and once completed, a separate (ring fenced) account is used to deposit the money. Sums can only be released after authorisation from both parties and then a cheque is raised with a double signature for added security. The cheque is either posted to the member, or can be paid into their bank account (if suitable details are provided). SPATA has been successfully using the Stakeholder Account for a number of years and below you will find some examples from members of how they have been able to take advantage of the scheme to offer an even more professional service.
PORTRAIT POOLS
Portrait Pools were discussing the manufacture and installation of a pool floor with a customer who had just had a bad
“THE STAKEHOLDER ACCOUNTCOULD BE A WAY OF ENSURING COMPANIES ARENOT LEFT OWED LARGESUMS OF MONEY BY MAIN CONTRACTORS, IF THEY GO BUST, DESPITE THE SUBCONTRACTORS COMPLETING THEIR WORK”
www.swimmingpoolnews.co.uk
experience after a different pool company had gone into liquidation. As David Bland explains: “We could see that the client was understandably wary about safeguarding their money after their experience with the first pool company going bust, so Andrew Rutherford and myself were able to reassure our client that their concern could be addressed through offering him the Stakeholder account.” Portrait Pools were able to negotiate an agreement where the pool floor was manufactured after a significant five figure sum was deposited with SPATA. The customer knew that the monies would only be released as per the agreement and both Portrait Pools and the floor manufacturer knew that the Trade Association had confirmed that cleared funds were available. The end result was the pool floor was delivered and installed with payment following soon after.
LONDON SWIMMING POOL CO SPATA members often find themselves dealing with main contractors and developers constructing swimming pools to make properties even more attractive to own. Tony Line and Jamie Smith were working on a project, where they recognised that both parties could benefit from having a formal agreement and monies deposited, as the client wanted to accelerate the construction phase of a pool project. After some initial discussions between the two parties, they agreed on the work programme and the release of payments after on-site valuations. A number of payments were authorised and monies released.
CLEARWATER SWIMMING POOLS Hedley Thomas has been using escrow accounts for a few years and this service was provided by his solicitor for a fee for each agreement set up. Hedley quickly realised that he could get a similar service from SPATA free of charge and this gave him further justification for paying his SPATA membership! Hedley has a number of Stakeholder agreements negotiated, as he can see the value of setting them up with his customers to ensure smooth payments (without delay) after he has completed the required actions. As you have seen, the Stakeholder Account can be used in lots of scenarios and other than any costs incurred for bank charges (usually free within the UK) the Stakeholder service is free to members. The only small source of income to SPATA or BISHTA is the interest accrued from the deposits while they are held. The money has to be in an instantly accessible account to be ready to make payments. With an ever increasing concern (from the pool trade, particularly) regarding payments from main contractors, the Stakeholder Account could be a way of ensuring companies are not left owed large sums of money by main contractors, if they go bust, despite the sub contractors completing their work. A free factsheet is available to download from the member’s area of both the SPATA and BISHTA websites. For companies thinking of joining one (or both) Trade Associations, please contact the relevant association to get more details of this (and other services). The contact details are:
admin@spata.co.uk or 01264 356210 or
admin@bishta.co.uk or 01264 356211.
SPN SPN August 2013 35
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