Specialist contractors have called on the government to appoint a ministerial 鈥渢sar鈥� to enforce payment standards and encourage supply-chain integration among firms working on public sector contracts.

The call for a payment champion was made at Monday鈥檚 session of the House of Commons鈥� select committee on Business, Enterprise and Regulatory Reform, which is conducting an inquiry into the construction industry.

The specialists were particularly concerned with main contractors鈥� practice of withholding retentions from subcontractors on local authority contracts.

Graham Wren, executive director of Balfour Beatty Ground Engineering and a past president of the National Specialist Contractors Council, said: 鈥淎 lot of government departments have a policy of no retentions, but it鈥檚 not enforced with contractors. Almost 100% are holding retentions where they are doing work on government projects.鈥�

On hearing the evidence, the MPs on the committee acknowledged that taxpayers were effectively giving main contractors an 鈥渋nterest-free loan鈥�.

Departments have a policy of no retentions, but it鈥檚 not enforced with contractors

Graham Wren

Rudi Klein, chief executive of the Specialist Engineering Contractors Group, said after the hearing that the 鈥渋ntegration tsar鈥� needed to be 鈥渟omebody high-profile 鈥� a business person, who鈥檚 done it all, knows what it鈥檚 about and can drive this process鈥�.

Suzannah Nichol, the chief executive of the National Specialist Contractors Council, said a minister was not needed, but there should be a champion to enforce standards.

She said: 鈥淪omeone needs tell people how to set minimum standards. There are directions, but they鈥檙e not being read.鈥�