The Chartered Institute of Building (CIOB) welcomes the announcement in yesterday's Queen's Speech of the Government's intention to improve the operation of construction contracts.

The new Bill (Local Democracy, Economic Development and Construction), which seeks to change current practice particularly in relation to payment and adjudication, would amend Part 2 of the Housing Grants, Construction and Regeneration Act 1996.

The CIOB supports the main aims of the Bill, which are to ensure prompt and fair payment practices throughout construction supply chains, and better enable the industry to adopt integrated working as the norm. It will also improve transparency and clarity of construction contracts, encourage parties to resolve disputes by adjudication and improve the right to suspend performance under the contract.


The CIOB is also an Adjudicator Nominating Body (ANB) and welcomes the plans to give adjudicators more powers.

Speaking on behalf of the CIOB, Peter Collie (Barrister and Chartered Builder) said: "We are pleased to see the reforms announced as part of the Local Democracy, Economic Development and Construction Bill, but as always the devil will be in the detail. The Government must work hard to ensure that the Bill does not have unintended consequences.

"There is concern within the industry that the latest draft of the Bill is overly complicated and unworkable in relation to the revised payment provisions, which may result in higher administration costs, delayed payments and unintentionally more adjudication."

He added: "We believe that the aims of the reforms are correct and to be welcomed. However we urge the government to continue to work closely with the construction industry to produce a payment mechanism that is simple yet effective and we look forward to seeing the final version of the legislation."

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(JM)