Early day motion on public sector payment
The Construction Industry Council (CIC), the construction industry representative body, of which CIAT is a member, has welcomed MP James Frith’s early day motion on public sector payment.
Mr Frith, MP for Bury North, tabled the motion on 23 January 2018, stating that:
'...small businesses must not be punished for the misdeeds of a failed large company; the collapse of Carillion highlights the payment abuse suffered by sub-contractors engaged in the delivery of public contracts for a Prime contractor; 30-day payment regulations for public sector contracts are routinely ignored by prime contractors and left unenforced, which facilitate practices such as Carillion's 126-day payment terms, leaving thousands of SMEs exposed.'
He called on the government to 'take action to enforce public sector 30-day payment regulations with consequences including the disqualification of those that do not comply from winning public contracts; and calls on the government to introduce new legislative proposals to place construction retentions into secure and independently held deposit protection schemes and tougher measures to limit borrowing against public contracts.'
CIC Chairman, Professor John Nolan, welcomed the motion. He said:
"Despite the Construction Supply Chain Payment Charter being in place since 2014, most public sector clients are not enforcing it and it clearly lacks teeth. It is essential that compliance with the Payment Charter is mandatory for all public sector contractors and that this should also extend to their private sector contracts. Failure to comply should result in the contractors’ exclusion from all public sector works. In order to make this work it will be necessary for a central registry to be set up that monitors compliance and facilitates whistleblowing."
CIAT President Alex Naraian said:
"It is important to examine the issues that have led to SMEs being negatively affected by procedures that should be addressed. CIAT supports Mr Frith’s view that existing legislation needs to be effectively enforced and would add that a review of current practices is also required."
This article was originally published here on 1 Feb 2018 by CIAT.
--CIAT
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Design and construction industry podcasts
Professional development, practice, the pandemic, platforms and podcasts. Have we missed anything?
C20 Society; Buildings at Risk List 2025
10 more buildings published with updates on the past decade of buildings featured.
Boiler Upgrade Scheme and certifications consultation
Summary of government consultation, closing 11 June 2025.
Deputy editor of AT, Tim Fraser, discusses the newly formed society with its current chair, Chris Halligan MCIAT.
Barratt Lo-E passivhaus standard homes planned enmasse
With an initial 728 Lo-E homes across two sites and many more planned for the future.
Government urged to uphold Warm Homes commitment
ECA and industry bodies write to Government concerning its 13.2 billion Warm Homes manifesto commitment.
From project managers to rising stars, sustainability pioneers and more.
Places of Worship in Britain and Ireland, 1929-1990. Book review.
The emancipation of women in art.
Call for independent National Grenfell oversight mechanism
MHCLG share findings of Building Safety Inquiry in letter to Secretary of State and Minister for Building Safety.
The Architectural Technology Awards
AT Awards now open for this the sixth decade of CIAT.
50th Golden anniversary ECA Edmundson awards
Deadline for submissions Friday 30 May 2025.
The benefits of precast, off-site foundation systems
Top ten benefits of this notable innovation.
Encouraging individuals to take action saving water at home, work, and in their communities.
Takes a community to support mental health and wellbeing
The why of becoming a Mental Health Instructor explained.
Mental health awareness week 13-18 May
The theme is communities, they can provide a sense of belonging, safety, support in hard times, and a sense purpose.
Mental health support on the rise but workers still struggling
CIOB Understanding Mental Health in the Built Environment 2025 shows.
Design and construction material libraries
Material, sample, product or detail libraries a key component of any architectural design practice.