The SEC Group is urging contractors to get their MPs to support Early Day Motion (EDM) 1941 to help promote payment security in the construction industry.

As the DTI's consultation on specific amendments to Part II of the Housing Grants, Construction and Regeneration Act continues, the EDM is being sponsored by members of an all-party Construction and Training Group in the House of Commons.

The SEC Group is working hard lobbying government to act on the consultation to ensure that weaknesses in the legislation are remedied.

The text from EDM 1941 reads: "This house believes that security of payment in the construction industry, especially for small and medium-sized businesses, is a prerequisite to achieving trust and collaboration in the industry.

Therefore, we urge the Secretary of State for Trade and Industry to use the opportunity presented by the current review of Part II of the Housing Grants, Construction and Regeneration Act 1996, initiated by the Chancellor of the Exchequer, to amend the Act to ensure that there is a statutory mechanism for defining the amount to be paid at the date for payment; that all conditional payment provisions and cross contract set-off are outlawed; that progress payments start from commencement of contracts; and that the Act provides effective protection for firms in the supply chain from upstream insolvencies.

"This house believes that payment security will be a major factor in the successful delivery of the 2012 London Olympics."

Source

Electrical and Mechanical Contractor