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New Construction Act 'could damage small businesses'

Construction industry leaders have expressed concern that the new Construction Act could damage small and medium businesses.

Construction industry leaders have expressed concern that the new Construction Act could damage small and medium businesses. Representatives from the Specialist Engineering Contractors' (SEC) Group are due to hold talks with the construction minister regarding the Local Democracy, Economic Development and Construction Bill, which was announced during the Queen's Speech. It is designed to encourage prompt payments throughout construction supply chains, but SEC Group chief executive Rudi Klein has expressed concern at a clause in the Bill relating to payment notices, which could be damaging to small businesses. He said: "The Bill gives the payer the option of issuing the payee with a notice for a certain amount and then allows them to issue a second notice with a different amount."

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