In response to Construction Act consultation, construction minister Alun Michael recommends restriction of pay-when-certified clauses, among other measures.

The DTI has backed action to improve payment practices in the industry after analysing responses to the recent consultation on the Construction Act.

Under recommendations issued by construction minister Alun Michael today, the DTI is considering taking forward a series of measures aimed at improving cash flow through the supply chain.

These include:

  • Restricting or eliminating pay-when-certified clauses
  • Providing for an application for payment
  • Allowing contractors to claim reimbursement for project suspensions over non-payment, including for the cost of remobilisation if payment is made.
However, the DTI has stopped short of banning pay-when-paid clauses, a move which will disappoint many subcontractor groups.