The Construction Confederation (CC) has warned that controversial proposals to amend the Construction Act will increase red tape and costs at a time when the industry can least afford it.

The CC believes that changes to the payment provisions will prove a burden to the industry as it battles against the economic downturn.

Proposals to amend the Construction Act are included in the Local Democracy, Economic Development and Construction Bill.

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The CC has been supportive of proposed improvements to the adjudication provisions of the Act but has consistently voiced serious reservations about proposals to amend the payment provisions.

Stephen Ratcliffe, Chief Executive of the CC said: "The proposed payment provisions are poorly drafted and will not help contractors of any size but will particularly hurt SME main and sub-contractors.

"They do not reflect the world in which contractors operate nor do they show much understanding of how payment works within the construction industry.

"Far from reducing costs, proposals to include verbal contracts within the legislation will only serve to make adjudication over disputes a lengthier and more costly process.

"Swift adjudication remains the most effective way to tackle non-payment and introducing oral examination and cross examination will delay the process and increase costs."

(CD/JM)