The National Specialist Contractors Council and UK Contractors Group agreed the move following weeks of talks.

Both sides will formally rubber-stamp the move next month and the new organisation will be operational from September.

The merged body will be led by current NSCC Chief Executive Suzannah Nichol.

President of NSCC Kevin Louch said: “I believe that by sitting around the same table we will be able to have honest conversations about how projects can be delivered more effectively and there is the definite prospect of addressing major industry issues such as pre-qualification, skills and of course payment.”

Chairman of UKCG James Wates said: “This is a huge step forward for the supply chain and, whilst there are some undeniable anxieties about how the new organisation will function, all our discussions to date have been extremely positive.”

Specialist subcontractors and majors have attempted several times to speak with a single voice over the years. But worthy efforts to offer Government a united front have always foundered around the issue of payment.

A cohesive voice representing the interest of tier 1 to tier 3 contractors would present a powerful lobbying voice to Government at a time when prompt payment and funding better training are serious concerns for industry’s major employers.