IMPROVING PAYMENT PRACTICES IN THE CONSTRUCTION INDUSTRY

Early day motion 1941, tabled 29 March 2006 by Claire Curtis-Thomas (Labour). Signed by 185 members.

That 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 urges 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 contract and that the Act provides effective protection for firms in the supply chain from `upstream' insolvencies; and believes that payment security will be a major factor in the successful delivery of the construction projects for the 2012 London Olympics.

Signatures by party: Labour 99, Conservative 46, Liberal Democrat 31, Scottish National Party 5, Social Democratic and Labour Party 2, DUP 1, Independent 1.