ECA survey finds most electrical contractors are being paid late
Nearly 80% of electrical contractors are experiencing late payment, according to a recent survey by the Electrical Contractors’ Association.
CEO David Pollock comments, ‘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.’
The Government is also said to be falling down on its promises. In December 2008, the Government pledged to pay suppliers within 10 days. However, the survey 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.
Mr Pollock commented, 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.’
