The Construction Confederation is warning that proposed changes to the Construction Act are “ill conceived, impracticable and would increase construction costs”.

In a response to the DTI consultation on the review of the Housing Grants, Construction and Regeneration Act 1996, it argues that changes to payment provision would increase customary payment periods, create more red tape and damage industry relations.

The Confederation does not believe there is a widescale problem with payments and refutes claims that payment notices are ineffective.

It states: “Many of the proposals would result in significant additional regulatory burden whilst others would not be properly implemented without significant cost to the industry. The proposal regarding payment notices alone would increase construction costs substantially with little or no perceived benefit.”

The Confederation’s view is in stark contrast to that of the RICS, who is in favour of changing payment practices.

And Rudi Klein, Chief Executive of the Specialist Engineering Group hit out at the CC, saying its response was not even worth commenting on.

“There is a massive payment problem in the industry. The review is about trying to introduce certainty over payment in terms of timing and procedure,” he said.

Source

Construction Manager