黑洞社区

The Contractors Legal Group (CLG) has been formed by the National Federation of Builders, the Civil Engineering Contractors Association, the Scottish 黑洞社区 Federation and the UK Contractors Group.

The body has attacked the bill, which is to become law before parliament returns on 18 November, for adding 鈥渋ll thought-out amendments鈥� that could lead to a lengthening of payment periods.

The government has agreed to an 18-month consultation on the bill after it becomes law, and it is not expected to come into force until early 2011.

Procedures due to be introduced under the bill include banning pay-when-certified clauses in construction contracts, and the outlawing of any payment mechanism where the payer (or any third party) can decide when payment becomes due.

The CLG said the provisions were 鈥減oorly drafted鈥� and would not deliver improved payment.

The government should be providing support, not red tape to businesses

Nick Walden, chairman, CLG

Nick Walden, chair of the CLG, described the payment provisions as 鈥渉orrendously complicated. He said: 鈥漊nder the bill, if the payer made a mistake and put the wrong amount, it would make it much harder for it to appeal.鈥�

He said: 鈥淭hey could adversely affect cash flow in the industry at all levels. The government should be providing support, not red tape to businesses.鈥�

Walden said the group was lobbying in the hope of influencing the next government.

The bill underwent its final hearing in the House of Lords on Monday.