SECG Scotland Payment Abuse Survey

Introduction

The Specialist Engineering Contractors' Group (SECG) Scotland, which represents the lift and escalator, h&v, plumbing and heating, steelwork and electrical contracting sector, recently met with Paul Wheelhouse MSP, Minister for Business, Innovation and Energy, to discuss the issue of payment abuse.

Following the meeting, the Minister expressed interest in payment security legislation for construction (possibly involving 30 day payments and protection for retention monies) and is keen to obtain examples of payment abuse.

The following survey aims to capture examples of abuse to illustrate our case and the results will be presented to the Minister.

All responses will be kept confidential.

Thanks in advance for your assistance.

Alan Wilson
SEC Group Scotland
National Executive Officer
c/o Walled Garden
Midlothian

EH26 0SB

t: 0131 445 5577

e: alan.wilson@select.org.uk

Question Title

* 1. Over the past 3 years, can you identify 3 projects where you have suffered either from late payment or have had a lengthy wait for the release of retention funds. Please identify the type of project from the list below.

	Commercial Property e.g. office/shop etc.	Public sector building e.g. school/hospital etc.	Domestic building e.g. new houses etc.
Refurbishment	Refurbishment Commercial Property e.g. office/shop etc.	Refurbishment Public sector building e.g. school/hospital etc.	Refurbishment Domestic building e.g. new houses etc.
New build	New build Commercial Property e.g. office/shop etc.	New build Public sector building e.g. school/hospital etc.	New build Domestic building e.g. new houses etc.

Other (please specify)

Question Title

* 2. From the projects you have identified, can you advise who the clients were ?


Local Authority	Local Authority
Other Public body e.g. NHS Board/Police Scotland etc.	Other Public body e.g. NHS Board/Police Scotland etc.
Developer	Developer
Builder	Builder

Other (please specify)

Question Title

* 3. From the projects and clients identified, what form of payment abuse did you experience?

	Public Sector - local authorities	Public Sector - NHS boards/Police Scotland etc.	Private Sector
Late payment - between 1 and 30 days late	Late payment - between 1 and 30 days late Public Sector - local authorities	Late payment - between 1 and 30 days late Public Sector - NHS boards/Police Scotland etc.	Late payment - between 1 and 30 days late Private Sector
Late payment - between 31 and 60 days late	Late payment - between 31 and 60 days late Public Sector - local authorities	Late payment - between 31 and 60 days late Public Sector - NHS boards/Police Scotland etc.	Late payment - between 31 and 60 days late Private Sector
Late payment - over 61 days late	Late payment - over 61 days late Public Sector - local authorities	Late payment - over 61 days late Public Sector - NHS boards/Police Scotland etc.	Late payment - over 61 days late Private Sector

Question Title

* 4. From the projects and clients identified, what form of retentions abuse did you experience?

	Public Sector - local authorities	Public Sector - NHS Boards/Police Scotland etc.	Private Sector
Retention withheld for more than 6 months from due date	Retention withheld for more than 6 months from due date Public Sector - local authorities	Retention withheld for more than 6 months from due date Public Sector - NHS Boards/Police Scotland etc.	Retention withheld for more than 6 months from due date Private Sector
Retention withheld for more than 12 months from due date	Retention withheld for more than 12 months from due date Public Sector - local authorities	Retention withheld for more than 12 months from due date Public Sector - NHS Boards/Police Scotland etc.	Retention withheld for more than 12 months from due date Private Sector
Retention withheld for more than 24 months from due date	Retention withheld for more than 24 months from due date Public Sector - local authorities	Retention withheld for more than 24 months from due date Public Sector - NHS Boards/Police Scotland etc.	Retention withheld for more than 24 months from due date Private Sector

Question Title

* 5. Over the last 3 years can you advise the total amount of any losses incurred as a result of payer insolvency?

Nil

£1 - £1000

£1000 - £5000

£5000 - £10,000

£10,000 - £20,000

£20,000+

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* 6. With regard to your answer to Q5, what % of the total relates to retentions?

1 - 19%

20 -49 %

50 - 74%

75% +

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* 7. Company Name (optional)

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* 8. Annual Turnover

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* 9. Main Business Activity

Lift And Escalator

Steelwork

Heating and Ventilating

Electrical

Plumbing