Fair payment and eco-issues take centre stage

It gives me great pleasure to launch the new ECA website, www.eca. co.uk. Members can now book courses, create technical certificates, purchase benefit credits online, as well as access the ECA manual and, from early March, access the ECA employment guide online. The guide has been completely revised and updated for 2007 and the online version will provide seamless support to the hard copy of the guide.

The member area has also been improved to make it easier to change contact details and create more logins. In addition, improved site navigation, a comprehensive news area, the enhanced events diary and the ‘find a member’ search, make it more easily accessible to members and other users alike.

May I now recall some of the many developments that have taken place during the last 12 months. The Fire and Security Association (FSA) has been developed from the ECA’s existing Fire and Security Steering Group and we will see the group stepping up its activities to represent the interests of ECA members operating in the fire and security sectors.

It is a great compliment to the ECA that prominent members of the fire and security industries wanted to join forces with us to develop this important area of industry activity. The Fire and Security Association will focus on lobbying, guidance and training to develop and maintain standards, in light of recent legislation and regulatory reform for both fire and security.

The ECA created its specialist section for fire and security systems installations over 20 years ago. The FSA will build on these existing foundations to better represent those involved in the provision of electronic fire and security systems.

Another key development over the last year was the introduction of the revised Part L of the Building Regulations, covering conservation of fuel and power in buildings. The revisions came into force last April and the ECA launched its Electrical Energy Efficiency Scheme to help contractors comply with the changes. This competent person scheme, approved by the Department for Communities and Local Government, covers buildings other than dwellings. The changes to Part L for dwellings have been incorporated under the Part P schemes.

The launch of the scheme brought a new website, www.partl.co.uk. The website provides a wealth of information and allows scheme members to register their job notifications online.

Additionally, presentations have been given to ECA branch meetings and to client and specifier groups, while our training department has also developed a course to equip scheme applicants to become energy supervisors for Part L.

In a recent survey carried out by the SEC Group 57% of firms reported payment delays and abuse on the majority of government projects. If we are to achieve collaborative working in this industry we must have trust. And, to secure trust we have to secure payment

An even more recent development was the ECA’s acquisition at the end of January of Elecsa, which operates both a full and a defined-scope Part P competent persons scheme. The purchase, from the Glass and Glazing Federation, was endorsed by the Department for Communities and Local Government. It is an opportunity to ensure that healthy competition is maintained between the five authorised Part P schemes, while equally ensuring that standards are upheld. As a champion of best practice, the ECA is well placed to support Elecsa contractors with the requirements of Part P.

Let me reassure members that the Elecsa scheme will run independently from the BRE Certification scheme, which the ECA will continue to support.

Also during 2006, the ECA prepared members for the new Construction Industry Scheme, being launched by HM Revenue and Customs on 6th April 2007. Some of the outdated tasks involving vouchers, cards and certificates no longer feature and have been replaced with the facility to operate electronically. This is a positive change that will reduce the administrative burden on businesses.

During the year, the ECA became a scheme operator for TrustMark, covering both electrical and security systems. The scheme proved so popular with ECA members that more than 500 of them registered within the first month. We now have upwards of 650 Part P-registered members enlisted and fully expect this to rise to 1500. These figures are extremely positive and highlight the level of investment that firms are putting into customer care.

The HVCA is also a scheme operator. In fact, ECA and HVCA have been working much more closely together in the past year. Our health and safety advisors have been actively co-operating for some time and the first joint health and safety conference was held in September 2006. Supported by the Health and Safety Executive and the Construction Confederation, the conference launched new criteria for assessing the health and safety capabilities of contractors during pre-qualification.

These criteria set the standard for our industry and they should help to reduce duplication and costs to m&e contractors of all sizes. They are also set to appear this spring in the Approved Code of Practice to the revised Construction, Design and Management Regulations.

Safety will always be important in our industry but no one should doubt the increasing impact of environmental issues. Tackling climate change is an enormous challenge but it is also an incredible opportunity for ECA and HVCA members. Both associations have developed substantial sustainability programmes and they are already co-ordinating their future efforts in this crucial area.

Both Associations represent a wide range of membership active in many markets. The ECA is committed to co-operation with the HVCA and others to support all of its members in their pursuit of efficiency and productivity. In so doing, we will enhance their responsiveness to clients’ demands for improvement in these respects.

Tackling climate change is an enormous challenge but it is also an incredible opportunity for ECA and HVCA members

To this end we are working with the HVCA, through our Strategic Labour Relations Forum, to develop a common approach to employment matters and, potentially, a single m&e working agreement. In the last year or two, various initiatives had signalled differences of approach by the two associations to labour matters. I am pleased to say that a coherent and committed effort to achieve a single agreement is now being made.

We have great opportunities to jointly deliver best value to single-discipline and m&e members alike. Together, we can ensure our members take the lead in providing sustainable solutions in our sector.

Last year the ECA signed the 2012 Construction Commitments. These were drafted as a series of best practice measures to be adopted by the Olympic Delivery Authority. The Government has also adopted them as appropriate for public sector construction procurement. The Commitments say all the right things – best value, not lowest price, early involvement of the delivery team, more team working and transparency, payment certainty and more risk-share rather than risk dumping.

However, in a recent survey carried out by the SEC Group 57% of firms reported payment delays and abuse on the majority of government projects. Furthermore, the vast majority of firms were not included in partnering arrangements on government projects and neither were they involved in the design team.

If we are to achieve a critical mass of collaborative working in this industry we must have trust. And, to secure trust we have to secure payment.

Therefore, well before 2012, the ECA and the SEC Group, will expect to see project bank accounts on public sector projects that will provide a safe receptacle for the cash payable to the delivery team; an end to retention abuse; and all payments to be discharged within 30 days.

I know that progress has already been made. The Office of Government Commerce and the Public Sector Construction Clients Forum have developed guidance on setting up project bank accounts. They have produced a payment charter, which will require payments on all public sector works to be made within 30 days.

It is a concern that the DTI still has to publish its proposals for amending the Construction Act to improve payment security. Nothing short of a statutory procedure that will define the debt to be discharged at the payment date will suffice. I challenge the government, as a public sector client responsible for over 40% of UK construction spend, to show robust leadership.

We have taken great strides forward during this past year. The challenge for us all is to make our industry fit for purpose for the future. Let us say from this association that the best has yet to come.