ACE warns that despite 70% increase in workload, late payments by private clients are damaging the engineering sector

The Association for Consultancy and Engineering has warned that a growing trend among private clients for delaying payment is damaging the sector.

The ACE this week released its state of business report for 2006, which showed that 70% of firms in the sector had experienced a growth in workload during the year. However, the growth was clouded by concerns over payment in the private sector, and fears over skills shortages.

Nelson Ogunshakin, ACE chief executive, said: 鈥淭he problem with private clients seems to be occurring across the board. We would advise companies to work only with sophisticated clients.鈥�

The report outlined expansion in the nuclear market over the next two years as a key area of growth for the sector. Ogunshakin also pinpointed Olympics contracts as a potential boost to the sector, but said the impact of the contracts would depend on the extent to which the Olympic Delivery Authority engaged with the sector.

He said: 鈥淭he ODA has to set a clear strategy. There has been a lack of communication so far, and if they鈥檙e not careful the wrong messages will be sent to the industry.鈥�