CIF calls for legislation on payments as jobs put at risk

CONSTRUCTION companies, including contractors and subcontractors, are facing staff lay-offs and even closure unless legislation is enacted preventing long delays and failure to pay by those availing of their services.

The Construction Industry Federation (CIF) said it wants new laws similar to those in Britain, which will require those who enlist the services or supplies of a contractor or subcontractor to pay up in full unless exemptions have been set out in advance of the contract commencement.

It says the existing Prompt Payment Act is only of use in the construction industry when the debt is not disputed. “In construction, when the debt is disputed, all the dispute resolution procedures must be exhausted before the debt is enforceable,” it said. “In some instances it may take years to determine the quantum of payment due and many companies cannot survive long enough to await the outcome.”