Action needed on Mandelson's ten-day payment pledge, says ECA
Nearly four out of every five electrical contractors are experiencing late payment, according to a recent survey conducted by the Electrical Contractors’ Association (ECA).
The ECA’s Better Payment Survey revealed that 79% of ECA members are being paid late, a statistic of deep concern for ECA chief executive officer David Pollock, who said: “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.”
In December 2008 the Government acknowledged the importance of cash flow to the survival of small businesses by making a pledge to pay suppliers within 10 days. However, survey findings showed that 85% of members had not received the benefit of the promised 10-day payment terms. Instead, 42% of members said they had been offered 30-day payment terms; 16.2% had been offered 45-day payment terms; and 15.4% had been offered 60-day payment terms.
“We need action from the Government to ensure that Lord Mandelson’s 10-day payment pledge is enforced with contractual terms to prevent this situation from deteriorating,” continued Pollock.
Electrical and Mechanical Contractor