• Introduce greater clarity and transparency into the statutory payment framework to enable construction companies to better manage cash flow;


• Encourage parties to resolve disputes by adjudication; and


• Identify how the costs and benefits of the package can be evaluated.

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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

• improving access to the right to refer disputes for adjudication by:


• applying the legislation to oral and partly oral contracts


• preventing the use of agreements that interim payment decisions will be conclusive to avoid adjudication of interim payment disputes


• ensuring the costs involved in the process are fairly allocated