SEC, the Specialist Engineering Contractors' Group, which represents the largest sector of UK construction by value, has welcomed the Government's publication of its Payment Charter and is urging its immediate implementation.
Group chief executive of SEC, Professor Rudi Klein, said: 'Given that there have already been many initiatives aimed at curbing payment abuse which have come more or less to nothing, enforcing compliance with the Payment Charter is of paramount importance. He added that the construction industry's payment record was worse than that of any other sector.
In this context, SEC Group is urging Government to make compliance with the Payment Charter a pre-qualifying requirement for all public works contracts.
Professor Klein said: 'Public sector bodies should introduce a 'yellow card/red card' system in respect of firms that fail to comply.'
Yellow card would require compliance within a specified period and, in the event of continuing non-compliance, the issue of a red card would mean disqualification from working in the public sector for at least two years.
He went on to encourage business secretary Dr Vince Cable to contact the top 100 private sector construction clients, inviting them to sign up to - and to enforce - the Payment Charter along the supply chain.
'SEC Group also believes that a 'charter ombudsman' should be appointed to drive implementation and identify instances of non-compliance,' said Professor Klein. He also added that one effective way of implementation would be the continued promotion of the use of project bank accounts across the public sector and utilities sectors.
'Such measures are essential if the Payment Charter is not to become yet another wasted opportunity,' he insisted.
