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OGC publishes the Guide to Best "Fair Payment" practices

Released on 23/07/2007

The Guide to Best "Fair Payment" practices marks the successful completion of work undertaken by the Public Sector Construction Client's Forum's (PSCCF) Fair Payment Working Group.

The working group was set up to catalyse effort in agreeing good fair payment practice in the construction industry which causes a large loss of money and productivity through mistrust and confrontation, as highlighted in the Latham and Egan reviews.

PSCCF together with the industry have delivered for the first time cross-industry agreement on the principles of fair payment best practice and have agreed to implement these. It is estimated that widespread adoption of the principles could save the public sector up to £750m.

This significant new Guide to Best "Fair Payment" practices describes a range of good practice tools and models such as Project Bank Accounts. It also includes a Fair Payment Charter, which commits clients, lead contractors and their supply chains to:

  • Greater transparency
  • No unfair withholding of retentions
  • More efficient payment procedures 
  • Payment periods not exceeding 30 days 

Central government construction clients are expected to adopt the principles set out in the Guide and the Fair Payment Charter by 1st January 2008.

OGC with PSCCF plans to monitor the progress of implementing the Fair Payment Charter and recommendations, together with the value gains accruing as a result during the next two years starting in January 2008.

Further information is available from the OGC Service Desk.

 

Contact details:
OGC Service Desk
Tel: 0845 000 4999
E-mail: ServiceDesk@ogc.gsi.gov.uk

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