Tag : ECA
Over a quarter of 316 engineering services firms surveyed on their financial performance have reported a fall in turnover during the first quarter of 2018, the highest falls of its kind in two years. The findings reflect the impact of adverse weather conditions and the fall of Carillion earlier this year.
Almost nine out of ten local councils in the UK are failing to pay companies for construction work within the legally required 30-day period, according to findings from BESA and the ECA.
Engineering services firms providing gas, fire, heating and ventilation services are owed roughly £75m from construction and services giant Carillion, which formally announced its liquidation last week.
The financial outlook of building services companies over the first quarter of 2019 is described as “subdued” with a majority expecting their incomes to either stay unchanged or fall in 2019, an industry survey has found.
A new bill to be introduced to parliament that sets out new rules for managing cash retentions will be backed by a number of industry bodies such as BESA and electrical and engineering services group ECA.
A second reading of a bill that would legally mandate the ringfencing of cash retentions is currently scheduled for March 8 with supporters claiming that the chairs of 15 influential select committees are among parliamentarians to have now expressed support.
The government has pledged from Autumn next year to consider blacklisting companies from public sector construction projects that are found to be paying their suppliers late.
A new bill mandating that all cash retentions from construction work are held in deposit protection schemes receives its first reading in parliament today.
BESA and the ECA hope to step up pressure on the government to overhaul cash retentions by calling for the introduction of mandatory third-party deposit schemes in a joint response to a recent consultation.
A survey of 372 individuals working across the engineering services sector has found that over three quarters of respondents saw turnover increase or remain steady during the second quarter of 2018, even with increased labour and materials costs.