Lord Adonis, past chairman of the UK Infrastructure Commission, has offered support for reform of payment practices in the construction industry.

In a statement advocating urgent reform of payment practices Lord Adonis said that the UK construction industry had to become more efficient and cost-effective by driving out wasteful processes and bad practice.  He added: “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. Furthermore the Government should support the Construction (Retention Deposit Schemes) Bill, submitted by Peter Aldous MP, which protects cash retentions.”

The Specialist Engineering Contractors’ (SEC) Group – representing the largest sector in UK construction (by value) – has welcomed support from Lord Adonis. Lord O’Neill, President of the Group, said that he was very pleased that his colleague in the House of Lords, who has been a highly influential driver behind infrastructure development in the UK, has voiced his views on industry payment practices.

Lord O’Neill commented: “The Government will be addressing payment practices as part of the agenda for the Construction Sector Deal.  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.”