Twelve point plan to stamp out late payment

Grant Prior 9 years ago
Share

Fair payment champions have launched a twelve-point plan to rid the curse of delayed bills from construction.

Leaders of pressure group StreetwiseSubbie have had their charter endorsed by MPs looking into the continuing curse of late payments.

Spokesman Barry Ashmore said: “Allowing a culture of late payment and brutal financial treatment to persist unchallenged is just plain wrong, and I am pleased that this report has given the StreetwiseSubbie Fair Treatment Charter formal recognition.”

The charter calls for

1 No charge or other payment or allowance of any kind to be on a tender list or to be an “approved”
subcontractor.
2 No unfair misleading or electronic auction tendering processes.
3 Honest and open feed back on tenders, which include compulsory notification and feedback
to any tenderer where that tenderers price is more than 15% cheaper than the next lowest
tenderer.
4 No unfair or misleading allocation of risk in any document forming the enquiry or contract.
5 Before entering into any contract the parties shall jointly check that the time, cost and
specification/scope obligations, and the terms of the contract are clearly defined, and fully
understood.
6 No hidden or annual rebates or other allowances to be included in any pricing.
7 Bespoke Sub-Contracts shall not be used. Use only un-amended Standard Form Sub-Contracts
e.g. the JCT or NEC suite of Sub-Contracts.
8 Adopt an honest and open culture, and a collaborative approach in respect of any matters
causing delay or disruption. Contractors to encourage, rather than deter proper delay
notification, progress reporting, and agreement of facts.
9 Adopt an honest open culture, and a collaborative approach in respect of variations. Unless it
is not possible, the time and cost implications of variations shall be agreed (which agreement
shall be binding) in advance of the varied work being undertaken.
10. Adopt and encourage the proper notification and agreement of variations on an ongoing
basis, such that the difference between the value of variations instructed and the value of
variations agreed, does not exceed the greater of 5% of the original contract sum or 15% of the
total agreed value of variations. Instructions that are issued outwith such limits shall be of no
binding effect.
11 Adopt an open and honest problem solving, rather than blame culture. Where any matter is
likely to give rise to a difference or dispute, the parties shall give brief particulars to the other
as soon as possible, and meet for direct good faith negotiations to try to resolve the matter.
12 Payment
.1 wherever possible the parties should meet to agree the valuations
.2 only in extreme circumstances should it be necessary to issue pay less notices which in any
event shall not change the measured works value agreed
.3 payment is to be made (preferably within 30 days but a maximum of 45 days) on time in
accordance with the terms of the contract.
.4 retention shall not exceed 3% and dates for release shall be discussed understood and
agreed
.5 simple monitoring measures shall be put in place to ensure that these payment terms are
adopted right through the supply chain on all publicly funded projects

Latest news

Kier more than halves debts to below £200m

Kier chief reports steady progress in first six months of trading
18 hours ago

Barhale boosts funds as it looks to rebuild turnover

Contractor confident as water companies ramp-up spending plans
18 hours ago

HS2 labour agency looks to float on AIM

£23m turnover labour supply business looks to raise funds for expansion
19 hours ago

Kane scores £29m M&E deal with Willmott Dixon

Off site works to play crucial role in major London estate contract
19 hours ago

Graham secures third Audley retirement village

Work starts on Audley Villages site at Scarcroft, West Yorkshire.
18 hours ago

Keltbray wins first deal for former nmcn infrastructure arm

Hull waste processing contract for rescued division
2 days ago

50 firms win £750m decarbonisation framework

Fusion21 framework to target 'whole building' works on homes and schools
2 days ago

Balfour Beatty UK construction MD to step down

Tom Edgcumbe to depart after just over a year as MD construction services in England and Wales
2 days ago

Crest Nicholson trebles cladding retrofit provisions to £43m

House builder revises building safety retrofit costs in face of new Government guidance
2 days ago

BAM bags £110m refurb of iconic Covent Garden tower

Landmark Seifert-designed 15-storey Space House to get two extra floors
2 days ago

Winvic to start UK’s largest speculative shed

Ellesmere Port warehouse understood to be worth around £80m
2 days ago

Kier signs deal for £169m Luton hospital revamp

Main construction work to start this month and last until 2024
2 days ago

Willmott Dixon nabs £30m Kirklees police HQ

Work to start within next few weeks on regional police HQ
2 days ago

Kier reported to be in talks to buy Tilbury Douglas

Talks reported to be at an advanced stage between both boards
3 days ago

Finance sealed for next-generation London office job

Goldman Sachs takes stake in London Bridge office project
3 days ago

John F Hunt starts giant clean-up on £110m Walsall site

Land remediation work at contaminated site will take two years
3 days ago

Build to rent boom lifts Watkin Jones profit to £52m

Surging build to rent market lifts development pipeline to £1.8 billion
3 days ago

HS2 awards £310m station lifts and escalators deal

TK Elevator signs 160 lifts and 130 escalators deal for four stations
4 days ago

Robot cutter set to revolutionise paving jobs for Eurovia

Automated system will spell end for noisy slab cutting on busy sites
4 days ago

First mass built carbon negative homes get underway

St Modwen first volume developer to build affordable carbon-negative homes
4 days ago

GMI Construction names new CEO

Lee Powell takes helm as CEO at GMI Construction in growth push
4 days ago

514-home London scheme clears final hurdle

Inland Homes declares victory after three-year planning battle over Hillingdon Master Brewer site
4 days ago

Henry Construction wins £30m Clarion housing scheme

Ravensbury estate regeneration in Mitcham is Henry's first project for Clarion
4 days ago

Lovell lands £700m homes deal with Suffolk council

Development joint venture will see at least 2,800 homes built across the county
4 days ago

Ballymore pulls 51-storey tower plan amid fire safety concern

London Fire Brigade raises concern about single staircase and fire strategy
7 days ago

New work surges as materials shortages ease

Mild weather and easing of supply chain bottlenecks lifts new work 5.7%
7 days ago

PDR Construction goes into administration

All staff made redundant as suppliers owed millions
1 week ago

Brick-laying robot gets approval from NHBC

Robot can now be used in construction of new homes covered by NHBC warranty
7 days ago

Temporary visa scheme needed for London sites

Mayor of London demands action over site skills shortages
1 week ago

Construction worker dies after fall from mobile tower

Court hears how tower wasn't configured correctly
1 week ago

Contractor services