SEC Group Wales calls for support for SMEs from Welsh Government
SEC Group, the Specialist Engineering Contractors’ Group, in Wales/Cymru, which represent the largest sector (by value) in Welsh construction, has written to the First Minister, Mark Drakeford, urging him to consider more measures to help provide support for SMEs.
SEC Group Wales/Cymru has identified three critical areas requiring attention and growing support for SMEs; cashflow, site safety risks and interruption to supplies of materials and components.
SEC Group has had reports of firms in Wales now running out of cash. This is the case where some payments are taking longer or not going through at all. This is especially the case on closing sites..
SEC Group Wales/Cymru has invited the First Minister to challenge Welsh public bodies. This is to ensure that their tier 1 suppliers are making payments (including retention monies). This will be to firms further along the supply chain and, if necessary, institute direct payments to sub-contractors. If not haven’t done so already, they will be insisting that public bodies in Wales use project bank accounts. This will be for projects over £2 million which ensure that sub-contractors will get paid.
Facing contractual claims
Subcontractors are also finding themselves in a very difficult position. They are needing to cease an activity or withdraw from site because of fears for the safety of their employees. In this situation they are facing contractual claims for any resulting delay/disruption to the works.
SEC Group Wales/Cymru is urging Welsh Government to warn large tier 1 suppliers that their behaviour during the current emergency could affect their ability in the future to obtain public sector work.
Welsh Government is beginning a dialogue with manufacturers, suppliers and distributors in Wales to encourage them to ensure as much as possible the availability of construction materials, components and equipment. Again, subcontractors are having to bear the risk of non-availability of materials.
Speaking on behalf of SEC Group Wales/Cymru, its chairman Peter Davies said he is keen to work with the First Minister to help in promoting measures to help SMEs in Wales: “All the added value in Welsh construction is provided by SMEs and our priority now is to ensure that we have the right measures in place to secure their long-term survival.”
Dave Kieft, formerly President of the Electrical Contractors’ Association, added: “The Welsh Government acknowledges that construction is part of the foundational economy providing essential support for the well-being of all of us. We want the industry to be in a fit state to continue to play this role and not be overwhelmed by the problems we are now witnessing during this emergency.”
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