Plans to improve payment practices in the construction industry have been unveiled by industry and regions minister Margaret Hodge.

As part of the Construction Act review, the consultation will seek to introduce greater clarity and transparency into the statutory payment framework, to enable construction companies to better manage cash flow.

Companies will also be encouraged to resolve disputes by adjudication and identify how the costs and benefits of the package can be evaluated.

Margaret Hodge said: 鈥淚t is essential for the construction industry that we have in place a system that delivers fair payment practices.

鈥淭he framework set out in the 1996 Construction Act has delivered some improvements, but recent industry surveys say that poor payment practices continue to be a key issue for many in the industry.

鈥淲e must change that. I believe this package represents good progress in securing a better payment system for the industry.鈥�

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