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Construction law update: late payment reforms, anticipatory BLOs under BSA, Scottish prescription ruling, IMS negligence scope, guarantee limits, and NHQB 2025 impact report

Published on: 16 April 2026

Published by a LexisNexis Construction expert
Legal News
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Article summary

In this issue:

  • Payment
  • Building safety
  • Scots law
  • Consultants on construction projects
  • Guarantees
  • Construction industry news
  • Daily and weekly news alerts
  • New and updated content
  • Construction trackers

Payment

Late payments—Tackling poor payment practices—government response

Tim Wright, Partner in technology, outsourcing and commercial at Fladgate LLP, reviews the government’s reply to the late payment consultation ‘Time to Pay Up’, issued on 24 March 2026, setting out the most far‑reaching measures to deal with overdue payments in more than a quarter of a century. Government figures suggest overdue invoices drain £11bn annually from the UK economy and push 38 firms out of business each day. The reform bundle would grant the Small Business Commissioner (SBC) stronger authority to probe, determine and penalise firms; impose a hard ceiling of 60 days on payment terms; mandate statutory interest at 8% over the Bank of England base rate; fix a legal cut‑off for challenging invoices; and float a prohibition on retention sums in construction agreements. The 60‑day limit will not arrive before 2027. Commercial lawyers should ready themselves for major shifts, as ministers plan to bring forward legislation at the earliest slot in the parliamentary timetable. See News Analysis: Late payments—Tackling poor payment practices—government response...

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