SEC Group to hold political parties to late payment commitments



Rudi Klein

The Specialist Engineering Contractors’ Group is to keep the pressure on political parties to tackle late payment amidst a deteriorating picture of payment abuse and insolvencies in the construction industry.

The trade body has said it will write to all parties the day after next month’s General Election seeking their support for new payment legislation.

With the parties now having published their manifestos, all are committed to tackling late payment and lengthy payment terms.

SEC Group’s CEO Rudi Klein said that as the two-year anniversary of the Carillion collapse approaches, it is shameful that there has been no meaningful action to alleviate the burden on construction SMEs of non-payment and under-payment:

He added: “We will hold all the parties to their manifesto commitments on payment by producing draft legislation that will ensure security of payment for all construction SMEs.”

Klein said that the measures in the new legislation will include:

  • mandated 30-day payments;
  • complete ban on pay when paid clauses;
  • payments on public sector/infrastructure projects to be made directly to all project participants through project bank accounts;
  • protection for retention monies;
  • cheaper dispute resolution for small claims;
  • penalties for serial late payers.

Firms in SEC Group’s member bodies are currently writing to all 3,322 prospective Parliamentary candidates to obtain their commitment to support legislation to protect payments to construction SMEs.

Tags: SEC Group



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