President hails Part P and competent persons work

During the past 12 months our membership base and the number of new applications have grown faster than ever before. We now have some 2300 members, with hundreds more qualified applicants in the pipeline.

The introduction of Part P of the Building Regulations was one of the biggest challenges the industry faced last year. Having lobbied for years for better regulation of electrical installation work, the ECA warmly welcomes this.

We were also delighted that BRE Certification’s application to run a Competent Persons scheme, which we supported, was successful. There are now five such full-scope schemes in the market.

Such competition provides choice to ECA members and the industry in general. It is an incentive for scheme providers to supply their services cost effectively, and in a way that is tailored to the business needs of installers and their customers.

We are watching the development of limited scope schemes very carefully and urge [the minister] to avoid any risk that this route might lead to a dilution of standards. I know that the ODPM is aware of some such issues relating to the full scope schemes.

On 1 January – the same day the new regulations came into effect – BREC received its first notification of a job carried out by an installer registered under its scheme. To the delight of all concerned, the notification system worked flawlessly.

For the present, the challenge for the industry is to ensure there are sufficient numbers of competent persons to satisfy the demands of customers and, thus, minimise temptation to use unregistered firms.

Part P covers both small-scale domestic work for consumers and large-scale developments for businesses. It will impact on large and small contractors alike.

Recent training developments include courses to help both installers and Building Control Officers understand Part P. Over 50 local authorities have expressed an interest. The ECA continues to lobby for funding for the training and up-skilling of adults within the industry and we aim to encourage employers to take on more apprentices.

The Association is also working closely with other industry stakeholders to ensure the effectiveness of SummitSkills and the new Sector Skills regime.

On 1 January, BREC received its first notification of a job carried out by an installer registered under its Competent Persons scheme. The system worked flawlessly

Perhaps the most dramatic example of working together is with our colleagues at HVCA, SELECT, APHC, BCSA and LEIA that make up the Specialist Engineering Contractors’ Group. Our common priority is getting paid on time. We are committed to security of payment and the Group continues to influence government on this.

Poor payment practices, as well as the ‘retentions abuse’ culture, significantly add to the inefficiencies in the industry. Payment abuse also adversely impacts on the profitability of small and medium-sized enterprises (SMEs). It diverts resources away from training, health and safety, and investment in IT and innovation.

We were pleased that the pre-Budget report confirmed the commitment of the DTI to issuing a consultation paper on the Review of the Construction Act in early 2005. This will concern measures to improve payment practices and the adjudication process for business in the construction sector. The industry now awaits this DTI consultation paper. We will respond to it. It is time to resolve payment difficulties once and for all.

Arising from further SEC Group initiatives on retentions, the Chief Secretary to the Treasury agreed that the Office of Government Commerce should chair a Fair Payment Task Group. This consists of interested parties, representing both the public sector and private industry, who will report back to the Chief Secretary to the Treasury.

Dealing with environmental issues and sustainability is having an increasing effect on the industry. Sustainability measures affecting ECA members include changes to Part L and tougher legal controls on energy performance of buildings, waste disposal and recycling electrical goods.

Our lobbying of the DTI on the waste disposal Directive has comforted us that it is not intended to cover the work of installers, unless they have retail or wholesale interests, or are involved in manufacturing or importing materials from outside the EU.

Our industry is, in general, buoyant, benefiting from a particularly strong construction market and domestic spending. However, we all face price and margin pressure. And, for members engaged in larger projects, evidence has shown markets are changing because of a shift in approach to placing orders by clients and major contractors. The increased use of PFI and Framework Agreements, for example, is impacting on how work is ordered and how services are provided. And, the way some major m&e contractors are developing their business models will, undoubtedly, have a knock-on effect for contractors, wholesalers and manufacturers.

We must respond positively to the demands of the market, but we must alert the industry to any adverse consequence that such changes might have. The vast majority of SMEs must grow to be more effective, professional and, thereby, more profitable. They must also be ready to diversify into other sectors.

Just consider for a moment what a terrible waste it is that firms with potential for growth and continuity often just fade away through lack of understanding and support. The ECA must help these firms to grow and we will also continue to build our relationships with industry bodies representing major and main contractors. By striving to understand and help all sectors of our industry, we will surely be better placed to support all of our members.

The vast majority of SMEs must grow to be more effective, professional and, thereby, more profitable

The ECA continues to be a leading industry champion on health and safety. Our Zero Accident Potential (ZAP) initiative is now in its fourth year. We are well on our way to achieving our medium-term targets of:

• zero fatalities;
• a 30% reduction in ‘three-day lost time’ accidents, compared with 2001;
• a 40% reduction in ‘major lost time’ accidents over the same period.

The recent publication, in conjunction with the HSE, of practical guidance on work at height is just one output of the ZAP programme. We are already planning a range of safety initiatives that will take us beyond ZAP in 2006. We are also committed to making a contribution at the Health and Safety Summit 2005.

Last spring, at the JIB Annual Conference, I was impressed by the passion with which employers and union representatives debated the issues. What became apparent was the need to increase the JIB’s appeal and visibility. Work on this involving the JIB, ECA and Amicus is going forward.

A key JIB initiative, the Electrotechnical Certification Scheme (ECS), continues to go from strength to strength. There are now more than 50 000 operatives registered. Back in December we awarded the 2000th Fire and Security ECS card. This truly was a celebration of working together – the British Fire Protection Systems Association and the British Security Industry Association took a big decision, putting aside any fears of joining with the ECA and the JIB to satisfy their needs.

In addition, the District Surveyors Association, representing over 400 local authorities in England and Wales, has begun discussions with the ECS to evaluate how ECS and its certified and approved electricians can complement the objectives of Part P.

In concluding, change is happening all around us. Some of it presents threats and challenges but it will always offer opportunities: it seems many of those opportunities can be grasped by even greater working together. No one can afford to stand still or in isolation. The Association will ensure it continues to support all of its members, whatever their size or discipline.

Finally, I would like to remind you of an excellent opportunity to meet, debate, and network with leading participants within the sector at the forthcoming ECA Conference in Palma, Mallorca, in May. I very much look forward to seeing you there.