Amendments to Construction Act set to go through Parliament

The government will 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 announced in the Community Empowerment, Housing and Economic Regeneration Bill will “improve the operation of construction contracts,” including “improving cash flow through construction supply chains and, where appropriate, encouraging parties to resolve disputes by adjudication rather than by litigation.”

The news will be welcomed by the vast majority, as gaps in the Act have been evident since its introduction in 2001.

Specialist Engineering Contractors' (SEC) Group chairman Trevor Hursthouse said: “This represents the culmination of over seven years lobbying by SEC to tighten up the Act. We are grateful to the construction minister and her officials for their help and support.

“The 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.”

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’s speech, there are still certain issues of principle that have to be dealt with.

“We 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,” said Klein.

“We’re not happy with the current proposal. It needs to be much tighter so that everybody knows where they stand. That's something we’re working out with the government at the moment.”