By law a company must have employers' liability insurance. Yet a number of factors, not least the significant increase in premiums, is making the issue of insurance increasingly difficult for contractors. The ECA is calling upon government to examine ways to improve the situation.

In particular, the ECA recommends: a reduction of unnecessary legal activity during the compensation process; a nationally-recognised system for rewarding companies that have improved health and safety with lower premiums; enough time to compare insurance quotes; the establishment of a workable tariff of compensation for industrial diseases.

Despite the findings of the recent House of Commons Trade & Industry Committee's report, calling for a phasing-out of retentions, the Government still believes that there is a link between retentions and the incidence of defects. There is no evidence to support this.

We welcome the proposal by Martin O'Neill, chair of the Committee, prompted by letters from SEC Group members, to reopen the enquiry and further examine the Government's reply to the Committee's report.

The issue of retention abuse must be addressed. We want to see retention monies being ring-fenced in separate accounts for the protection and benefits of all involved parties and then returned on the satisfactory completion of work.

Source

Electrical and Mechanical Contractor