Peer criticises government response to Construction Act amendments

The ex-director general of the office of fair trading, Lord Borrie expressed concern at an alleged lack of support from the government for his amendments, aimed at ensuring payment security for subcontractors, given its reported commitment to helping SMEs in the recession.

The amendments were not voted upon at Committee Stage, where Lord Borrie made his comments, however the peer has insisted that the government provides more detailed account of its position in relation to the amendments.

Lord Borrie’s amendments in full:

? A single statutory adjudication procedure;

? Simplification of the payment process so that it is initiated by the payee (as in all other industries);

? A statutory period of time in which the payer can respond to the payee’s application;

? Complete abolition of pay-when-paid arrangements;

? The statutory right to suspension to be extended to the situation where a payer is unable to provide adequate security for payment.

Trevor Hursthouse, Chairman of the Specialist Engineering Contractors’ (SEC) Group, said: “I am delighted that Lord Borrie’s amendments have had their first hearing in the House of Lords. This represents the first round of the process and the amendments will continue to be debated in the remaining legislative stages in the House of Lords and, again, in the House of Commons”.