PM announces construction industry contract reforms

15 May 2008
More news

16 May 2008 | Jake Kanter

Efforts to improve cash flow and dispute resolution in the construction industry have been announced by the government.

The proposals, revealed as part of prime minister Gordon Brown's draft Queen's speech this week, will also see the proposed "construction contractors bill" incorporated into the "community empowerment, housing and economic bill".

It is hoped the legislation, which will be introduced in the new Parliamentary session this November, will increase cash flow through the construction sector's supply chain. In addition, it will encourage parties to resolve disputes with adjudication rather than litigation.

Suppliers' representative group the National Specialist Contractors Council (NSCC) welcomed the draft bill. "We look forward to the detailed legislation, which should achieve the certainty of payment so necessary for the construction industry," said Simon Bottomley, president of the NSCC.

The construction sector often experiences more problems with payment than other industries because of its fragmented nature, with around seven steps between buyer and final supplier (News, 4 October 2007).



SMmay2008

LATEST
JOBS
Swindon, Wiltshire
upto £40K base (+ Paid overtime and corporate benefits)
Honda Manufacturing Ltd
Kew gardens, Richmond upon Thames, London (Greater)
£37,000 - £42,500 per annum pro rata, depending on skills and experience
Kew Royal Botanic Gardens
SEARCH JOBS
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates
GO TO CIPS KNOWLEDGE