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Construction and materials industries

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DOE may dash Latham dream

Article Abstract:

The proposals put forward by Sir Michael Latham in the 'Constructing the Team' report for reforming payment systems in the construction industry may not all be included in planned construction payment legislation. The report called for legislation to force clients to secure project funds in a trust fund, to ban unfair contract clauses and to give companies the right to refer disputes to an adjudicator. However, initial drafts of the legislation have not gone this far.

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Bill changes will ruin contractors

Article Abstract:

The Construction Industry Employers Council (CIEC) fears that many contractors will be forced to cease trading if parliamentary amendments lead to the Construction Bill being made stricter. It has pointed out that subcontractors could persuade the House of Lords to make changes to provisions for outlawing 'pay-when-paid' clauses. This would force contractors to fund all payments due to subcontractors even if they have not received any payment from an insolvent client.

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Gate clashers

Article Abstract:

The case of Mowlem, construction company's dismissal from the Carlton Gate housing development is described. The company was sacked from the contract in 1989 amid allegations of construction delays and funding problems. The dispute over the company's dismissal was referred to arbitration, and the dismissal was found to be wrongful and in breach of contract, and damages of 9.3 milion pounds sterling were awarded, along with interest and costs.

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