Amendment could help SMEs

摘要

Recently Lord Borrie laid an amendment to the Construction Bill to allow firms that have carried out works or provided services to request the paying party to provide adequate security for payment.rnIf the security is not provided, the firm can suspend further performance of its contract by giving seven days' notice.rnThis has caused a storm of protest in some quarters. One wonders why, given the plight of firms affected by upstream insolvencies and the impact on jobs and dislocation to projects.rnThe main complaint is that it will be expensive for the payer to provide security for payment. I would have thought that the expense involved would be far less than the total cost arising from the impact on the affected supply chains.