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Specialist Engineering Contractors鈥� (SEC) Group president Lord O鈥橬eill of Clackmannan has withdrawn proposed amendments to the Construction Bill because of corruption allegations that have been levelled against peers.

Lord O鈥橬eill had put down amendments that proposed changes to the Bill, particularly in respect of payment terms to subcontractors and adjudication procedures. O鈥橬eill is paid an undisclosed fee for his role as president of subcontractors umbrella body the SEC Group.

The amendments were withdrawn as O鈥橬eill felt it 鈥渋nappropriate in the current climate to pursue them鈥�, according to his personal spokesperson. The House of Lords stressed O鈥橬eill had declared his interest with the SEC Group during the debate and that there was no question of impropriety.

Rudi Klein, SEC Group chief executive, said: 鈥淥bviously it鈥檚 a disappointment, but the amendments to the Bill are necessary and in line with what the government is doing to help SMEs. If the Bill goes through without these amendments, subcontractors won鈥檛 have their payment terms improved in any significant way.鈥�

Klein wrote to 100 members of the House of Lords to explain the amendments and ask for their support. Following the debate in the House of Lords, the Bill is expected to move to the House of Commons in late February or early March.

鈥淥ur message to ECA members and other subcontractors is to make your mark with your MPs as the Bill moves to the House of Commons. With more than 20 small firms in the industry going bust each week, we have to continue the fight.鈥�

n Liberal Democrat MP Chris Huhne has called for a police investigation into peers, including Lord O鈥橬eill.

He also called for the House of Lords to be fully elected from the next general election, which must take place by May 2010 at the latest.