Margaret Hodge said: "It is essential for the construction industry that we have in place a system which delivers fair payment practices. The 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. We must change that. I believe this package represents good progress in securing a better payment system for the industry."
Sounding board member Peter Rogers, Stanhope plc said: "I am delighted that this consultation is being launched today. The proposals it contains have been subject to detailed scrutiny by the sounding board, as well as more widely by the industry. Fair payment must underpin more integrated working practices. The construction industry now has the opportunity to consider measures which should be in the better interests of all of us."
Guidance
Guidance remains the preferred route to improve the operation of construction contracts and further legislative intervention is suggested only where it is absolutely necessary. Prompt and fair payment practice throughout construction supply chains will help the construction industry to adopt integrated working as the norm.
This will be achieved by:
On adjudication
On payment
On suspension
These proposals are intended to be proportionate amendments to theexisting framework to address specific issues that have arisen duringthe nine years the Construction Act has been in operation.
Legislation to implement the proposals emerging from this consultation will be introduced as soon as Parliamentary time allows.
--
If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy.
-
Susie Hughes
The Editor © Hardhatter 2007