The Specialist Engineering Contractors (SEC) Group has welcomed the announcement in todays Queens Speech of the Local Democracy, Economic Development & Construction Bill. The Bill will amend the payment and adjudication provisions in the Construction Act. In welcoming the announcement, SEC Groups Chief Executive, Professor Rudi Klein said:"In the current economic climate and with increasing evidence of payment abuse in the construction industry this announcement is extremely timely".He added:"We intend to brief MPs on the contents of the Bill.
We will urge them to support it but with the caveat that its provisions will need to be carefully scrutinised to ensure that they do deliver improved cash flow for SMEs". The Bill aims to tighten the Act by defining the amounts to be paid at the final payment date and outlawing all conditional payment provisions. Its scope is widened to include oral contracts and onerous cost provisions in adjudication procedures are outlawed.