Parliament Acts on Construction Payment Reform

The Small Business Protections Bill, formally referred to as the Commercial Payments Bill, was introduced to Parliament on 19 May 2026. For flooring and finishing contractors, who sit at the end of the construction supply chain, its implications are significant. 

The Bill addresses long-standing issues around retention and late payment that have affected specialist contractors for many years. The Contract Flooring Association (CFA) has reviewed the legislation in detail and identified several areas of direct relevance to businesses operating in the flooring sector, including: 

• How the Bill's approach to payment terms and retention will affect flooring contractors across both public and private sector contracts.
• The enforcement provisions introduced by the Bill and what they mean in practice.
• What flooring businesses can expect in terms of their commercial relationships with clients as the sector adapts.
• How the transition from current payment practices to the new regime will be managed, and over what timeframe.
• What contractors will be entitled to claim, and how, in the event that a client defaults on their payment obligations.

The CFA is monitoring the Bill's progress through Parliament and will continue to assess its implications for members as it develops.

Detailed guidance, analysis and practical support across all of the areas above is available to CFA members.  For further information on CFA membership, visit www.cfa.org.uk, email info@cfa.org.uk or call 0115 941 1126.