The Cabinet office has floated plans to exclude late paying main contractors from bidding for public works contracts in a new consultation document.

As a benchmark the Government proposes that paying 95% of undisputed invoices within 60 days, over two consecutive six month periods, is an appropriate benchmark of adequate payment performance.

Firms would be given options to self-clean their record paying compensation in respect of any damage caused by late payment.

Engineering specialist umbrella trade body SEC Group is now calling for a yellow/red card system for late payers leading to a three year ban.

SEC Group’s CEO, Rudi Klein, said that he was particularly pleased that the Government intends to exclude poor payers from government procurement.

Klein said: “If such a system had already been in place Carillion would have been excluded from government contracts.

“We have been urging the Government to introduce a yellow/red card system for a long time.  The yellow card is a warning to improve payment performance and the red card excludes a continuing poor performer from bidding for government contracts for a period of 2 to 3 years.”

Rudi Klein added that if such a system had already been in place Carillion would have been excluded from government contracts.