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Electrical engineering jobs: prompt payments
10 July 2009
According to a recent survey conducted by the Electrical Contractors? Association (ECA), nearly four out of every five electrical contractors (79 percent) are being paid late. To those with electrical engineering jobs, this figure is alarming. In the words of ECA chief executive officer David Pollock: ?At a time of financial insecurity for many businesses, it disturbs me to see that so many of our members are experiencing late payments. Late payments disrupt cash flow and can have dire consequences for businesses struggling to stay afloat.???
Acknowledging the importance of punctual payments to the survival of small businesses, the Government made a pledge in December 2008 for its suppliers to be paid within ten days. However, the aforementioned survey showed that 85 percent of ECA members had not received the benefits of such a promise. Instead, 42 percent of those with electrical engineering jobs had been offered 30-day payment terms; 16.2 percent had been offered 45-day payment terms; and 15.4 percent had been offered 60-day payment terms.
Apart from those with electrical engineering jobs, those in other sectors are also feeling disappointed. According to a survey conducted by the Heating and Ventilating Contractors? Association (HVCA), the public sector has failed to improve its payment regime to suppliers. Despite Lord Mandelson?s announcement that ?central Government will aim to pay its suppliers as soon as possible, and within ten days at the latest???, the survey revealed that only 12 percent of HVCA members had received their payments within ten days. While 39 percent had to wait at least 30 days, another eight percent had to wait more than 60 days.
In comparison, those who acted as subcontractors on public-sector projects had been treated even worse, with only ten percent receiving their payments within ten days. While 63 percent had to wait at least 30 days, another ten percent had to wait more than 60 days.
These survey findings are hardly cheerful news to those with electrical engineering jobs, as none within the construction industry appears to be receiving prompt payments from their public-sector clients. Lord Mandelson?s message is simply not being heeded.
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