The Construction Confederation has attacked the reform of payment practices being contemplated in the present review of the Construction Act. The confederation is arguing that the DTI’s proposals are “misconceived” and will drive up costs.

The confederation made its criticisms in its official response to the government’s consultation on the review, which ended on Tuesday. The move will come as a blow to specialist contractors, who were hoping that the act would deliver significant payment reform.

John Bradley, the confederation’s director of legal affairs, said: “We are concerned that the document has been prepared largely on a misconceived basis, in that it appears to assume that payment problems are rife in the industry, whereas in fact the opposite is true.

“Attempting to legislate to deal with the minority to the detriment of the rest of the industry is inappropriate and unfair.”

The confederation was particularly hostile to any revision of the legislation on payment notices. Subcontractors have lobbied for this as a means of establishing when a debt arises. The confederation is maintaining that the proposal would increase costs and damage relations within the supply chain.

Bradley said: “The proposals do not have a hope of achieving a consensus across the industry - and without consensus the government will find it difficult to implement.”