A selection of readers’ comments about news and issues in the industry from across the CIOB community and social media.
‘Our main contractor client is withholding payments. What can we do?’
This contract clinic looked at the options for a subcontractor whose main contractor failed to pay its final invoice.
The Late Payment of Commercial Debts Act 1998 (later amended by Late Payment of Commercial Debts Regulations 2013) sought to penalise late payers by draconian interest on such late debts.
The words “provide a substantial contractual remedy” within the act being pertinent. In the event of the party’s express terms not so providing, the default position of 8% above base rate is specified in the act.
However, when base rates are very low, as has been the case over recent years, it is arguable that 8% added to almost nothing is NOT a “substantial remedy” and more than 8% could well be supported by the courts, depending on all the circumstances.
The act provides, in addition to interest, for a lump sum to be paid by the defaulting party, although the sums specified (dependent on the band within which the debt falls) are not large.
A caveat should be noted, and that is the act allows a delay to be contractually specified before statutory interest begins to accrue.
A further remedy (tactic?) a creditor may wish to consider is the issue of a statutory demand, a precursor to insolvency proceedings, but space precludes discussion of this. Suffice it to say that I have used this ‘threat’ to good effect on many occasions on behalf of clients (and myself).
Michael Hawkyard FCIOB, accredited mediator and registered adjudicator
Do we have the skills for a retrofit revolution?
CITB’s Wendy Osborn and Kevin McLoughlin FCIOB sat down with CM People’s editor Nadine Buddoo to discuss the construction workforce’s challenges hindering the UK’s retrofit efforts.
It was good to hear Wendy talk about the two big requirements which are seeing an increase in the number of people needed in the industry and how a retrofit operates. I definitely agree with her important observation that getting the right amount of support with apprenticeships is critical.
Talking about apprenticeships, it was interesting to hear Wendy mention the different challenges in the [UK] nations in the way they work and that one of the most important things is working in collaboration on this.
It was insightful to hear that CITB has a net-zero action plan on its website.
Leeroy Mathias via LinkedIn
Everything contractors should know about RIDDOR
Gateley solicitor Holly Caulwell explained when reporting an accident is required by law, and why going beyond the minimum requirements is desirable to keep employees safe.
I think the issue of near misses should have a higher profile. The learning process from these is arguably more valuable than accident investigation – a near miss is an accident waiting to happen.
Michael Watts RetMCIOB
Construction consultants revive clerk of works role
A Midlands building consultancy is reviving the concept of a clerk of works as building safety and compliance become increasingly important.
Well done. I hope this is the start of an industrywide initiative and has longevity. The name clerk of works may change, but a trained specialist of whatever nomenclature independently focused only on quality and compliance (over and above building control) is the key to ensuring quality and safe fitness for purpose, sadly eroded over the last few decades.
David Gale FCIOB
Share your views on the latest industry issues by posting comments online at www.constructionmanagement.co.uk or by emailing the editor at [email protected].
