PHAM FEB18 EDIT:Layout 1 30/01/2018 17:08 Page 1
Volume V olume o 56 | Issue 2 | F February ebruary 2018
Industry w Industry weighs eighs u up p tthe he costt o off C Carillion collapse cos arillion co llapse A poll poll o off e engineering ngineering s sub-contractors ub-contracttors indicates indicates that that many many companies companies in in the the sector sector are are facing facing huge huge ffinancial inancial losses losses following following tthe he well-publicised well-publicised collapse collapse of of UK UK construction construction group group Carillion. Carillion. New data obtained by Building Ne w d ata o btained b y tthe he B uilding Engineering E ng ineer ing Services Ser v ices Association Associat ion (BESA) (BESA) and a nd the the Electrical Electr ical Contractors’ Contractors’ Association Association demise off C Carillion ((ECA) ECA) ssuggests uggests tthat hat tthe he d emise o ar illion will have damaging w ill h ave d amaging rrepercussions epercussions ffor or a llarge arge number off ssub-contractors. n umber o ub-contractors. estimated Carillion owes around IItt iis se stimated tthat hat C arillion o wes a round £75 80 engineering £ 75 million million tto o around around 8 0 e ng ineer ing firms, who provide sservices er v ices fi r m s, w ho pr ov ide sservices er v ices ssuch uch as electrical, plumbing, gas, fire and a se lectrical, p lumbing, g as, fi re a nd ssecurity, ecurity, and a nd heating heatting and and ventilation. ventilation. IItt iis s tthought hought tthat hat overall are be higher, tthe he o verall llosses osses a re llikely ikely tto ob e ffar ar h igher, given g iven there t here are are thousands t housands of of businesses businesses operating and o perat ing iin n tthe he iindustry ndust r y a nd tthat hat tthe he engineering e ng ineer ing sservices er v ices ssector ector iis s tthe he llargest a r g e st part off tthe construction by value. p ar t o he c onstr uction iindustry ndustr y b yv alue. The ECA and BESA T he E CA a nd B ESA ssurvey ur vey sshows hows tthat hat contractors off a all have been affected c ontractors o ll ssizes i ze s h ave b een a ffected by The b y Carillion’s Car illion’s demise. demise. T he ttotal otal value value of of ongoing contracts with Carillion worth o ngoing c ontracts w it h C ar illion iis sw or t h £47.2 most off w which are now att rrisk. £ 47.2 million, million, m ost o hich a re n ow a isk. Micro businesses 10 employees) M icro b usinesses ((less less tthan ha n 1 0e mployees) are off a re owed owed on on average average £98,000 £98,0 0 0 and and one one o
SMEs owed tthese hese S MEs iis so wed over over £250,000. £250,0 0 0. Small firms employees) are owed S mall fi rms ((10-49 10-49 e mployees) a re o wed £141,000 £ 141,000 on on average average and and one one of of these these contractors owed £800,000 by Carillion. c ontractors iis so wed £ 800,0 000 b yC ar illion. Medium-sized M edium-sized businesses businesses (50 (50 – 249 24 49 employees) employees) are a re owed owed on on average average £236,000 £236,0 000 and and large large businesses b usinesses (250 (250 employees employees +) +) are are owed owed on on average £15.6 million. a verage £ 15.6 m illion. knew ““We We k new tthe he ffall-out all-out ffrom rom tthis his sseismic eismic episode but e pisode would would be be extremely ext remely y sserious, er ious, b ut tthese hese figures figures give give us us a clearer clearer picture picture of of just just how h ow hard hard our our sector sector is is going going to to hit hit in in terms terms of of
off p pounds off u unsecured debt tthe he thousands thousands o ounds o nsecured d ebt tthat hat will w ill be be lost lost by by ordinary ordinar y hard hard working work ing businesses, ssmall mall b usin nesses, jjeopardising eopardising ttheir heir ffuture utur u e and off ttheir BESA a nd tthe he ffuture ut ure o heir sstaff,” taff,” ssays ays B ESA President P resident Tim T im Hopkinson. Hopk inson. Both ECA and BESA have called B ot h E CA a nd B ESA h ave llong ong c alled ffor or unfair practices within rreform eform tto ou nfair payment payment p ractices w ithin construction. Carillion was widely known c onstr uct ion. C ar illion w as w idely k nown months pay tto o ttake ake over over ffour our m ont hs tto op ay ssuppliers, upplie er s, despite d espite 30 30 day day payment pay ment being being industry indust r y good practice. To g ood pr actice. T o ttackle ackle tthis his sslow low payment, pay yment, bodies are calling tthe he two t wo trade trade b odies a re c alling on on the t he Government pay small and mediumG over nment tto o p ay sm all a nd m ediumssized ized businesses businesses directly, direct ly, using using ‘project ‘project bank b ank accounts’. accounts’. The associations are also Bill T he a ssociations a re a lso ssupporting upporting a B ill by Peter Aldous MP, ttabled abled b yP eter A ldous M P, which which is is currently currently going Parliament. The Bill will g oing tthrough hrough P arliament. T he B ill w ill prevent pr event clients clie ents and and main main contractors, contractors, such suc u h as Carillion, using own accounts a sC arillion, ffrom rom u sing ttheir heir o wn a ccounts held back tto o sstore tore money money h eld b ack ffrom rom ssuppliers uppliers iin n case c ase of of defects defects – ring-fenced, r ing-fenced, independent independent accounts would be used a ccounts w ould b eu sed iinstead. nstead.
Cold C old homes homes linked linked to to m mental ental health health issues issues A new new rreport epor t p published ublished b by y tthe he E Energy nerg y a and nd U tilities Alliance Alliance (EUA) (EUA) highlights highlights the the scale scale Utilities o uel poverty pover t y in in tthe he U K, w it h m illions off ffuel UK, with millions cold homes and lliving iv ing iin nc old h omes a nd ssuffering uffer ing ffrom rom a rrange ange o off p physical hysical a and nd p psychological sycholog ical iissues ssues ass a rresult. a esult. The The research research also also sheds sheds light light on on how h ow insufficient insuf ficient policy polic y is is not not only only failing failing tto o help help tthe he ssituation ituation o off tthe he ffuel u uel p poor, oor, b but ut in in ssome ome c cases ases actually act ually worsening worsening it. it. S Statistics tat ist ics reveal reveal that t hat every ever y year year cold cold homes h omes k kill ill o over ver ffour our ttimes imes a as s many many people people ass road a road a and nd rrail ail a accidents ccidents a and nd n nearly early ffour our ttimes imes as as many many people people as as drug drug misuse. misuse. Each Each winter, w inter, there t here are are around around 28,500 28,50 0 excess excess winter w inter deaths deaths the the majority majority of of which which can can be be attributed cold homes estimated a ttributed tto oc old h omes – iit’s t’s e stimatted tthat hatt an a n older older person person d dies ies e every ver y seven seven minutes minutes
during winter months; again can d ur ing tthe he w inter m ont hs; a gain tthis h is c an be b e attributed att r ibuted to to the t he inability inabilit y to to heat heat their t heir homes h omes ssufficiently. uf ficient ly. The T he EUA’s EUA’s report, repor t, entitled ent itled ‘Fuel ‘Fuel Poverty: Pover t y: Ending E nding the t he vicious v icious cycle c ycle of of vulnerability’ v ulnerabilit y’ aims provide an perspective a ims tto o pr ov ide a n iinformed nfor med p er s p e c t iv e on and offer off pr practical o n tthe he iissue ssue a nd o ffer a rrange ange o act ical ssolutions. olutions. It It highlights highlights a range range of of issues issues such such as digital divide, off grid households, a s tthe he d ig ital d iv ide, o ff g r id h ouseholds, heating iinefficient nefficient h eating ssystems ystems and and inability inability of of poor access ffuel uel p oor households households tto oa ccess iinitiatives nit iat ives help One off tthe main iintended ntended tto o h elp tthem. hem. O ne o he m ain rrecommendations ecommendat ions is is to to provide p ov ide more pr more ffunding unding to to aid aid the t he installation installat ion of of efficient ef ficient and boilers which viewed as a nd functional f unct ional b oilers w hich iis sv iewed a s key k ey to to alleviating allev iat ing problems problems in in some some of of the the most m ost vulnerable v ulnerable homes. homes.
Mike Executive off tthe EUA M ike Foster, Foster, Chief Chief E xecut ive o he E UA policies being ssays: ays: ““It It is is clear clear that, that, despite despite p olicies b eing iintroduced nt roduced and and mechanisms mechanisms put put in in place, place, ffuel uel poverty u poverty remains remains a devastating devastatting reality reality for for around million households a round 4 m illion h ouseholds living living in in the the UK UK who find heat w ho fi nd tthemselves hemselves struggling struggling tto oh eatt ttheir heir homes. We have heard anecdotes h omes. W eh av ve h eard sshocking hocking a necdotes of of people p eople sself-disconnecting, elf-disconnecting, facing facing the the ‘heat ‘heatt or eat mental health e at dilemma’ dilemma’ or or experiencing experie i ncing m ental h ealth problems orr ssevere as pr oblems o evere iisolation solat ion a s a rresult esult of of organisations ttheir heir ffuel uel poor poor status stat us ffrom rom o rganisat ions working w ork ing on on the t he ground. g round. ““Fuel Fuel poverty pover e ty is is a complex complex issue, issue, and and our our off pr proposals rreport epor t ssuggests ug gests a range range o oposals tthat hat can needs be an urgency c an combat combat it. it. There There n eeds tto ob ea nu rgency amongst policy makers because a mongst p olicy m akers b ecause tthis his rreally ea ally iiss a life life or or death deat h scenario.” scenar io.”
COMPETITION
WIN! S ee page 45
Made M ade to to last last
Workwear W orkwear m manufacturer anufacture e D er Dickies ickies iis s ccalling alling on o n tradespeople tradespeople e to to reveal reveal their their oldest oldest and and most m ost reliable re eliable items ittems of of workwear workwear in in a ccompetition ompetittiion tto ow win in n£ £100 100 w worth orth o off v vouchers. oucherrs s. ““We We know know our our products products are are built builtt to to last last and a nd this this competition competition is is a celebration celeb brration of of tthat,” hat,” said Whitaker, s aid JJames ames W hittaker, Marketing Marketiing Director. Dire ector. ““Whether Wheth her it’s itt’s a sturdy sturdy pair pair of of comfortable comfortable boots b oots o orr a m much uch lo loved oved jjacket, acket, w we ew want ant tto o know which products have really k now w hicch p ro oducts h ave re eally y stood stood off ttime.” tthe he test test o ime.” To T o enter, enterr, follow follow Dickies Dickies on on Twitter T wittter (@ (@ DickiesEurope) orr F Facebook and share D ickiesEurope) o aceb e ook a nd s hare a photo off y your how p hoto oo our cclothing lo oth hing iitem, te em, iincluding nclu uding h ow you’ve had and orr tthe extreme llong ong y ou’ve h ad iitt – a nd / o he e xtre eme which been used cconditions ondittio ons iin nw hich iit’s t’s b een u sed – using using tthe he hashtag hashtag #builttolast. #builtttolast. The The competition competittion 12 25th February. rruns uns ffrom rom 1 2 tto o2 5th F ebruar y.
ENQUIRY
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