Contractors group welcomes changes on payment and litigation but warns bill needs tightening
The government will finally push through amendments to the Construction Act as part of its legislative programme for the next parliamentary session, according to Gordon Brown.
Extensive reforms are to be made next year in order to improve payment practices and tighten up the adjudication procedure, reducing its costs.
The measures proposed in the Community Empowerment, Housing and Economic Regeneration Bill will 鈥渋mprove the operation of construction contracts鈥. This would include 鈥渋mproving cashflow through construction supply chains and, where appropriate, encouraging parties to resolve disputes by adjudication rather than by litigation.鈥
The news will be welcomed by most contractors as gaps in the act have been evident since its introduction in 2001.
Specialist Engineering Contractors鈥 (SEC) Group chairman Trevor Hursthouse said: 鈥淭his represents the culmination of more than seven years鈥 lobbying by SEC to tighten up the act.
鈥淭he amendments will be aimed at improving payment certainty and reducing the costs of adjudication. We look forward to the legislators supporting the amendments, which will achieve greater equality and fairness for SMEs.鈥
However, SEC chief executive Rudi Klein said that, while the group is delighted that amendments to the act will be included in the draft Queen鈥檚 Speech, there are still issues that have to be dealt with.
鈥淲e still need to get the key position regarding payment rise, for example. And that key position is one which deals with establishing a debt at the final date of payment,鈥 said Klein.
鈥淲e鈥檙e not happy with the current proposal. It needs to be much tighter so that everybody knows where they stand. That鈥檚 something we鈥檙e working out with the government.鈥
- The SEC Group has also called for a more integrated approach to the delivery process. It highlighted poor procurement as the main reason for unnecessary construction waste during a current inquiry.
Speaking on behalf of the group, NG Bailey鈥檚 Cal Bailey stressed the need for a process in which 鈥渄esign teams, comprising consulting engineers, contractors and manufacturers, buy into more efficient designs and methods of construction鈥.
Source
Electrical and Mechanical Contractor
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