ELECTION: Subcontractors demand political action over late payment

The Specialist Engineering Contractors’ (SEC) Group (representing the largest sector in UK construction by value) has said that amidst a deteriorating picture of payment abuse and insolvencies in the construction industry, that it will be writing to all the parties on 13th December seeking their support for new payment legislation.

SEC Group’s CEO Rudi Klein said that as the two-year anniversary of the Carillion collapse approaches, it is shameful that there has been no meaningful action to alleviate the burden on construction SMEs of non-payment and under-payment. “We will hold all the parties to their manifesto commitments on payment by producing draft legislation that will ensure the security of payment for all construction SMEs.”

Klein added that the measures will include:

• Mandated 30-day payments;
• Complete ban on pay when paid clauses;
• Payments on public sector/infrastructure projects to be made directly to all project participants through project bank accounts;
  protection for retention monies;
• Cheaper dispute resolution for small claims;
• Penalties for serial late payers.
• Firms in SEC Group’s member bodies are currently writing to all 3,322 prospective Parliamentary candidates to obtain their commitment to support legislation to protect payments to construction SMEs.