Latham said the group's first task was to establish a working group to deal with payment provisions.
Construction minister Nigel Griffiths said he would give his full support to Latham and agreed with the direction the review group was taking. Griffiths said: "We have the right person for the job, and the industry is rapidly coming on board to support this process."
An announcement over the appointment of a chair for the subgroup is expected shortly.
Griffiths said that the industry had a valuable role to play in providing support and contributing ideas to the progress that had already been made in tackling late and non-payment.
The subgroup will report back in July. It will work alongside a group that will scrutinise the role of adjudication in construction.
The review group will include representatives from the DTI, the cabinet office, the Construction Confederation and the Construction Clients Group.
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