M&E contractor EIC has branched out into high voltage work. Andrew Brister spoke to financial director Graham Lyall about the new division.
M&E contractor EIC is launching EIC High Voltage Services, an autonomous division set up to cater for large corporate end-users as well as other m&e firms.
EIC has been carrying out specialist hv work for over three years now but decided to test the market by establishing the new division six months ago. The team carries out all aspects of hv electrical systems from cable jointing and termination through to complete design, installation and commissioning of services up to 33 kV.
Having now provided services for an array of clients including Tesco, Asda, British Gas and IBM, EIC is confident that the time is right for the new division. "This is a highly skilled service offering, so we have proceeded with caution while growing the team and pitching for new business," said EIC's financial director Graham Lyall.
"By acting independently, the division is able to offer a specific service to our competitors as well as our clients so we can offer a stand-alone service and a turnkey operation. I'm delighted that we have made an impact across a variety of sectors and that we are now winning repeat business from clients who are impressed by the high standard of the service offering."
Is the hv market a natural progression for m&e contractors?
Not at all. The high voltage services arena is a specialist, high-risk market. We've launched our services offering in response to client demand.
Why don't all large m&e contractors offer an hv service?
Set up costs are high and there are difficulties associated with recruiting suitably trained personnel, not to mention legal issues and health and safety responsibilities. This is borne out by the fact that many large m&e contractors still choose to subcontract out high voltage works to specialist hv companies.
What measures have to be put into place in order to be successful?
Under the Electricity at Work Regulations 1989, employers and employees have a dual role and legal responsibility for the safety of people who may be affected by the work activities - this is of particular relevance when operating in the hv arena.
A Principal Duty Holder has to be appointed (normally managing director level) with ultimate responsibility within the company to ensure that appropriate advice is available on all matters concerning the electrical systems and equipment under the Electricity at Work Regulations.
The Principal Duty Holder will appoint a suitably qualified electrical engineer as Company Authorising Officer with responsibility to implement written procedures (approved by the Principal Duty Holder) to cover activities associated with work or operations on hv systems.
The high voltage services arena is a specialist,
high-risk market
Is there a recognised qualification for hv operatives?
There is not a national qualification or a single certificate of proof to judge ability to operate a high voltage system. Senior Authorisation Person (SAP) status is normally granted to individuals who have completed appropriate technical training and demonstrated their competence by interview and practical test.
The normal route for a company is to recruit personnel with a background in the regional electricity companies (RECs) who have undergone a recognised Electricity Supply Industry electrical engineering training scheme that includes SAP status. This may also include vetting by an external body such as the high voltage training schools still operated by a number of RECs.
What clients are you attracting?
We're attracting end-user clients from all sectors as well as other m&e contractors who are unable to provide hv services. Anybody who uses high levels of electricity and who has their own hv supply is a potential client. Our team has experience of working in many environments, so is well equipped to work on any site.
Are the rewards greater than in traditional m&e contracting?
EIC HV Services is a self-financing autonomous division that enables the company to provide a turnkey solution for clients. Obviously this turnkey aspect is a strong selling tool. However, for EIC the rewards of hv are not greater than a traditional m&e contract as our average contracts are of a fairly significant value.
What are your sales and profit ambitions for the division?
Our aim is to experience sustainable, steady growth and to enjoy an increase in market share over the next 12 months.
Any tips for those considering a similar move?
Make sure you have a good, strong, capable team who possess a thorough knowledge of all high and low voltage distribution systems and put stringent quality and health and safety regulations in place.
Source
Electrical and Mechanical Contractor
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