FIS, the trade body for the interior fit-out and finishes sector, is urging its members to check payment delay clauses in preparation for a no-deal Brexit.
Delays was raised at the No-Deal Brexit Contingency Planning event organised by the Construction Leadership Council and BEIS. Leading Tiers 1 contractors stated that delay costs would be borne and passed on by main contactors.
The impact of delay clauses was also flagged during the FIS Conference in October when Geraldine Fleming discussed Force Majeure; the unforeseeable circumstances that prevent a party from fulfilling a contract.
Iain McIlwee, CEO of FIS, said: “The concern is that since Brexit is not unforeseen Force Majeure will provide little protection. The way that construction contracts are structured means specialist contractors tend to carry a disproportionate amount of risk.
“We would encourage early discussions between clients and firms, and for all those involved in the supply chain to both demonstrate flexibility and seek to ensure that risks are managed by those organisations best placed to do this.”
In the FIS Brexit Risk Checklist contractors are encouraged to carefully consider any contract clauses that may leave them exposed to penalties, should a no-deal cause delays to projects.