Government agrees to 30-day payments
June 2008
The Construction Commitments, which were originally drafted for the 2012 Olympics construction programme have been made industry wide by the Stragetic Forum and Government clients have this week signed up to these industry standards.
This could have a significant effect on those contractors working on public sector projects who will be required to adopt the commitments for their entire supply chain. Some of the Construction Committments which may have the greatest impact include 30-day payment periods, project bank accounts and no unfair withholding of retentions.
Government clients who have signed up include the Highways Agency, the Office of Government Commerce and the Department of Health and it is understood that these clients will insist on the incorporation of the commitments into their contracts.
More information, the full text of the commitments and a list of those companies who have signed up can be found on the Strategic Forum's website at www.strategicforum.org.uk
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