I would like to touch upon some of the areas where we are working with other parties to improve the recognition and reward of qualified individuals and businesses within the electrical engineering and building services industries.
A major achievement in our co-operative efforts during the past year has been the development of the Major Projects (M&E) Agreement. This has resulted in a single enabling agreement, signed on Thursday 6 February, involving Amicus and the three associations – the ECA, the HVCA and SELECT.
It will be incorporated as an appendix to each of the sectors' collective working agreements for application on selected major projects.
We believe that the agreement will encourage investment in construction by providing clients with the stability and confidence they need to commit to huge capital projects.
We look forward to seeing the effective and sensitive implementation of the agreement within our industry. Discussions with the client are already taking place to see if the new agreement can help at Heathrow Terminal 5.
During the year, the Specialist Engineering Contractors' (SEC) Group, within which we co-operate with five other specialist trade associations, has supported the work of the Strategic Forum. It is currently playing a very active role in the Integrated Teams Working Group while also carrying forward the campaign against retention abuse.
We welcome the recent House of Commons, Trade and Industry Committee Report The use of retentions in the UK construction industry, and look forward to a positive response by the Government.
In particular I welcome the main recommendation of this report, that government departments be given a target date of 2007 for the phasing out of retentions from their procurement contracts. What a real help that would be towards ending the abuse of retentions, which currently tie up £3.25 billion of working capital.
Furthermore, we have asked government to consider two possible interim measures. First, that retention should be released on the satisfactory completion of work. And, second, public sector procurers should ensure that contracts for construction works require that all retention monies be lodged in a separate ring-fenced account for the protection and benefit of all parties involved in the project.
I welcome the recommendation that government departments be given a target of 2007 for the phasing out of retention from their procurement contracts
The HVCA has been a key and close partner in these activities and our relationship with it has been given a new profile through the recent establishment of a joint convergence committee.
The committee will make recommendations to the two Associations on how best to represent the increasingly important community of m&e companies, along with proposals on enhancing operational convergence at a corporate level. I would, however, like to point out that the committee will respect the wishes of those members who want to remain as pure electrical or mechanical contractors.
The ECA has long recognised the trend towards convergence between the electrical and mechanical industries and I am delighted that we are now pushing forward with our HVCA colleagues.
In the middle of last year, the Government launched a consultation exercise aimed at improving electrical safety in dwellings. The key issues were whether the IEE Wiring Regulations should be referenced within the Building Regulations and what conditions should be put in place for installers to self-certify the compliance of their work.
The ECA, in co-operation with other bodies, has encouraged government to base compliance for installation work on the IEE Wiring Regulations and to adopt the industry's Electrotechnical Assessment Scheme (EAS) as the specification for competent electrical contractors certifying compliance within the Regulations. The industry is anticipating an announcement from government before the end of March.
I would urge the Office of the Deputy Prime Minister to confirm that electrical safety will be referenced within the Building Regulations and that the Electrotechnical Assessment Scheme will be the determinant of competence.
Meanwhile, the ECA is building ever-closer practical and corporate links with the certification sector. Last year our partnership with BRE Certification received accreditation for inspections aligned to the EAS. We are also working closely with other certification bodies such as the NICEIC and the National Security Inspectorate.
A critical aspect of ECA members' work is ensuring site safety. Last year we launched our Zero Accident Potential (ZAP) Initiative and continue to raise awareness throughout our membership. We were also pleased to have reached agreement on the affiliation of our Electrotechnical Certification Scheme to the Construction Skills Certification Scheme. All existing and future Electrotechnical Certification Scheme card holders will be required to undergo a health and safety assessment as part of card renewal or entry.
All of this clearly demonstrates the commitment and leadership of the Association in respect of health and safety in the workplace.
We believe the Major Projects (M&E) Agreement will encourage investment in construction by providing clients with the stability and confidence they need to commit to huge capital projects
A key question for the Secretary of State and the industry is: how can we continue to attract, interest and retain good, young people, against a background of social and demographic change? The Government's policy to strengthen funding for vocational education and training, along with its intention to develop Sector Skills Councils, will help.
I am pleased that the Sector Skills Development Agency recently agreed that SummitSkills, our own industry's Sector Skills Council, should move into the development stage of the licensing process. The Agency has also approved some welcome financial support.
SummitSkills embraces the electrotechnical, heating, ventilating, air conditioning, refrigeration and plumbing industries. It is employer-led, with the support of the five associations active in the sector and has benefited from the involvement of Amicus.
The process to date has been very time-consuming. Therefore, I seek the Secretary of State's assistance in ensuring that SummitSkills is not further delayed or bogged down in bureaucracy.
The electrotechnical sector currently employs over 12 500 advanced modern apprentices throughout the UK. The sector has the fifth highest uptake in England and Wales; the second highest in Scotland; and the highest uptake in Northern Ireland – a performance that is the envy of the construction industry.
Our industry's training strength was best illustrated at the recent eMAc national modern apprentice competition finals at the SkillsCity convention in Manchester.
However, good though our industry's training performance is, there is no room for complacency and we look to the Government to provide support funds for adult trainees to enable this industry to make equally good use of that source of recruits.
In addition to the achievements I have already mentioned, it is a pleasure to report that during the past year the ECA has substantially increased its membership, and applicant enquiries are at record levels.
Source
Electrical and Mechanical Contractor
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