Monday, December 8, 2008

Contractors slam red tape increase in Construction Act

Main contractors believe plans to amend the Construction Act will increase red tape and costs at a time when the industry cannot afford it.

Leaders of the Construction Confederation believes changes announced in the Queen’s Speech will prove a burden to the industry as it battles against the economic downturn.

The Confederation backed improvements to the adjudication provisions of the Act but has serious reservations about proposals to amend the payment provisions.

Confederation leaders believe the proposals will increase the burden on contractors by:

Forcing the redrafting of all the standard and bespoke forms of contract at great expenseForcing companies of all sizes to employ experts to interpret the new clausesAdd to the already heavy admin burden in terms of staff time in a worsening economic situationRequiring costly training of staff dealing with paymentADVERTISEMENT

Contractors slam red tape increase in Construction Act


Chief executive Stephen Ratcliffe said: “The proposed payment provisions are poorly drafted and will not help contractors of any size but will particularly hurt SME main and sub-contractors.

“They do not reflect the world in which contractors operate nor do they show much understanding of how payment works within the construction industry.

”Far from reducing costs, proposals to include verbal contracts within the legislation will only serve to make adjudication over disputes a lengthier and more costly process.

“Swift adjudication remains the most effective way to tackle non-payment and introducing oral examination and cross examination will delay the process and increase costs.”

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