Yesterday's Queen's speech to Parliament has already sparked reaction from the boss of a leading trade organisation and raised concerns by the proposed change to Withholding Notice provisions, as the draft Bill now allows the Payment Notice to be reduced for any reason at any time before payment is made.

David Pollock, Chief Executive Officer of the Electrical Contractors' Association (ECA), said that there will be no certainty of payment until payment is actually received.


He said: "We also feel it falls short in the area of adjudication and arbitration. The ECA would like to see a standardised adjudication procedure in place. We believe that simplifying the process will speed up settlements and ultimately help businesses move forward. We strongly urge Government to review this area of the Bill."

However, the ECA has welcomed news that costs of suspending and remobilising work due to late payment will be recoverable by sub-contractors.

Mr Pollock continued: "This will benefit the sub-contractor if the main contractor defaults. The removal of 'Pay When Certified' conditions is another positive move that will benefit sub-contractors," he commented.

See: Queen's Speech Tackles Economic Downturn And The Unemployed

(CD)