Construction Act review slammed by big firms

The long-awaited review of the Construction Act has come under fire from main contractors after it was announced in the government's 2008/09 planned legislative programme.

A raft of proposals outlined by Gordon Brown last week contained amendments to the Act which have been in consultation for five years.

But the Construction Confederation is warning that the plans are unnecessary and will prove too costly.

Chief executive Stephen Ratcliffe said: "We have serious reservations about proposals to amend the payment provisions. Additional legislation on payment terms will bring increased red tape and increased costs."

Subcontractors suffering payment delays were delighted by the news.

National Specialist Contractors Council (NSCC) president Simon Bottomley said: "Specialist contractors continue to provide the NSCC with evidence of extended payment terms, unfair contract conditions and blatantly abusive payment practices, and we look forward to the detailed legislation, which should achieve the certainty of payment so necessary for the construction industry to move forward."

The Community Empowerment, Housing and Economic Regeneration Bill also contained plans for the allocation of £200m to the Housing Corporation to buy new properties on the open market.

A draft bill will be released for consultation in the summer, before proposed legislation is announced in the Queen's Speech on 5 November.