The proposal was part of Mark Farmer’s Modernise or Die report last year tackling the future of construction.

Ministers have now issued their response to the report endorsing most of its findings.

But they stopped short of backing a charge of up to 0.5% of the value of contracts to be levied on clients who refuse to reform voluntarily.

The response stated: “Government agrees that involvement of the construction industry’s clien ts in addressing underinvestment in skills and innovation is crucial to improving the sector’s productivity.

“However, the introduction of a client charge to encourage and fund modernisation could risk damaging developer confidence and increasing costs, at least in the short term.”

Farmer himself is happy that the Government is going along with most of his recommendations.

He said: “I am delighted with the government’s positive response to the findings and recommendations set out in my review.

“I recognise that driving industry change is a long haul but with a supportive government, both acting as an intelligent public client and in terms of setting wider policy, this can only help realise my vision of a modern and fit for purpose construction industry.

“I also feel that industry itself is becoming increasingly aware of the unprecedented challenges it now faces and I believe this ‘burning platform’ is starting to accelerate its own thinking in how it embraces modernisation, albeit this also needs to be supported by the clients that the industry serves.“

For a full copy of the government response click here