Plans to improve payment practices throughout the construction industry were unveiled today by Industry and Regions Minister Margaret Hodge.
The construction industry accounts for 9% of tthe UK's economy. The new plans aim to: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; andIdentify how the costs and benefits of the package can be evaluated.''It is essential for the construction industry that we have in place a system which delivers fair payment practices. The framework set out in the 1996 Construction Act has delivered some improvements but recent industry surveys say that poor payment practices continue to be a key issue for many in the industry. We must change that.'I believe this package represents good progress in securing a better payment system for the industry,' she said.Peter Rogers from Stanhope plc said, '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,' he said.