Subcontractors demanding new Late Payment legislation

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sub contractor not paid

A Construction Industry organisation is demanding tough new measures to combat a new wave of late payment in their sector. The Specialist Engineering Contractors’ (SEC) Group represents the countries largest sector within the Construction industry and wants new laws to be made.

The SEC has said that there is a deterioration in payment practices. In addition, its members have reported increases in payment abuse. This is added to increasing insolvencies in the construction industry.  The SEC has announced that it will be writing to all Political parties on 13th December requesting their support for new payment legislations.

SEC Group’s CEO Rudi Klein said that as the two-year anniversary of the Carillion collapse approaches, it is shameful that there has been no meaningful action to reduce the burden on construction SMEs for non-payment and under-payment.

“We will hold all the parties to their manifesto commitments on payment by producing draft legislation that will ensure the security of payment for all construction SMEs.”

Klein added that proposals within the SEC’s drafted papers will include:

  • Mandated 30-day payments;
  • Complete ban on pay when paid clauses;
  • Payments on public sector/infrastructure projects to be made directly to all project participants through project bank accounts;
    protection for retention monies;
  • Cheaper dispute resolution for small claims;
  • Penalties for serial late payers.
  • Firms in SEC Group’s member bodies are currently writing to all 3,322 prospective Parliamentary candidates to obtain their commitment to support legislation to protect payments to construction SMEs.

Many Small Businesses and Sub Contractors that have not been paid are struggling with cash flow. If you are a member of the SEC then you can add your support by contacting your local SEC representative.

It is also advisable that if you are experiencing non payment of invoices, then seek the assistance of Debt Collection Professionals. Never seek the help of any unlicensed or ‘rogue’ debt collection agents.

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