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Former infrastructure tsar calls for payment reform

07 September 2018

Lord Adonis, who is a previous chair of the UK Infrastructure Commission, has called for payment reform to assist in improving UK construction industry performance.

Payment practices are in need of "urgent reform", according to the Specialist Engineering Contractors' (SEC) Group.

Improved efficiency can be achieved through driving out wasteful processes and bad practice, said Lord Adonis.

"This includes eradicating payment abuse and manipulation of the cashflow process which impacts upon quality and delivery within time and cost.

"I see no reason why we can't insist that all projects use project bank accounts," he continued.

"Furthermore the government should the Construction (Retention Deposit Schemes) Bill, submitted by Peter Aldous MP, which protects cash retentions," said Lord Adonis.

SEC president Lord O'Neill said he was "very pleased" that his House of Lords colleague had voiced his views on industry payment practices, following his "highly influential" drive to improve UK infrastructure.

"The government will be addressing payment practices as part of the agenda for the Construction Sector Deal," said Lord O'Neill.

"The solutions referred to by Andrew Adonis - insistence on the use of project bank accounts and the Bill to protect cash retentions - will, undoubtedly, help to curb payment malpractice," he said.

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