Contracting

CIAT members and affiliates work in a range of business, from large multidisciplinary practices to specialist SMEs. Others are self-employed or sole traders. Yet all these professionals can offer unique, valuable contributions to building design and construction projects. CIAT supports a diverse sector, with contracting models which do not unfairly disadvantage SMEs. This will ensure that the sector is robust and resilient, while allowing space for innovation and efficiency.

In particular, CIAT supports prompt and fair payment and transparent retentions policies. The Procurement Act 2023 lays out an expectation of electronic invoicing and 30-day payment terms which are particularly important for small businesses with tight cash-flows. Similar 30-day payment terms are found in the Procurement Reform (Scotland) Act 2014. Further information on this legislation can be found here.

CIAT believes private businesses should operate on the same basis, to ensure that smaller suppliers are not disadvantaged. CIAT supports new reporting requirements for large businesses, due to come into force on 1 March 2025, which will shed light on contractor practices, and the Institute looks forward to further information on a new voluntary Fair Payment Code, which we understand is in development. More information on payment reform can be found here.