Construction: Billing

Business, Innovation and Skills written question – answered on 13th July 2012.

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Photo of Gordon Banks Gordon Banks Labour, Ochil and South Perthshire

To ask the Secretary of State for Business, Innovation and Skills what recent discussions his Department has had on payment practices in the construction sector; and if he will make a statement.

Photo of Mark Prisk Mark Prisk The Minister of State, Department for Business, Innovation and Skills

As the Minister of State for Business and Enterprise, I have regular discussions with the construction industry and payment practices often feature.

The Government takes the issue of prompt payment seriously and respects some of the differences which prevail in the construction industry. That is why we have introduced amendments to the “Construction Act” to provide greater clarity around the communication of payments and to improve access to adjudication (which is a quick 28 day dispute resolution process). We are also using the Government's role as a customer of the industry to promote better payment practices through construction supply chains. For instance, over the next three years, £4 billion of public construction work will delivered using project bank accounts.

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