The British Institute of Fitted Interiors Specialists (BIFIS) has welcomed the Prime Minister’s new plans to crack down on “cowboy tradespeople”, but warned that the new measures risk being “one-sided” unless they protect legitimate tradespeople from problems like the unfair withholding of funds.
Earlier this week, Prime Minister Andy Burnham announced a new scheme which will allow consumers to hold funds in a secure account until renovation or construction work is properly completed, in an effort to combat so-called “cowboy tradespeople”.
The Government also announced a new Approved Code scheme to help consumers identify and hire trusted tradespeople.
BIFIS says it supports “firm action against rogue operators”, however it says that it believes any widespread reform such as that announced this week must be designed “with the responsible majority of the industry”, and not simply imposed on them without meaningful consultation. For example, BIFIS believes this process should include stakeholders like sole traders, microbusinesses, specialist installers, independent retailers and regional contractors.
The organisation has also called for any new trusted payments framework to include clear safeguards for bona fide tradespeople, which should include things such as transparent milestone definitions, prompt dispute resolution, protection against unreasonable non-payment, recognition of upfront material costs, and proportionate administrative requirements for small businesses.
BIFIS also argues that payment reform should be linked to a wider agenda about competence and standards, such as the proposed standardised competencies that the institute has advocated for in its recent Vision 2030 manifesto.
“We welcome the fact that the Prime Minister is paying attention to an issue that has affected both consumers and reputable tradespeople for far too long,” said Damian Walters, chief executive officer at BIFIS. “Rogue traders cause real harm, and they also undermine the many skilled professionals who work hard, invest in their businesses and deliver quality outcomes for customers every day.”
“However, the current proposals appear heavily weighted towards the consumer payment journey, without enough recognition of how construction and refurbishment projects are actually delivered on the ground. Payments are not simply profit; they fund materials, labour, subcontractors, insurance, compliance costs and the day-to-day cashflow that keeps small businesses alive. If money can be held back without clear safeguards, independent tradespeople could be left carrying all the risk while still being expected to deliver the work.
“It is disappointing that trade associations representing the tradespeople and businesses most affected by these proposals do not appear to have been properly consulted before the announcement was made. If the Government is serious about driving out cowboy builders while supporting professional standards, it must work with organisations that understand the realities of running a legitimate trade business.”
Walters said that BIFIS was ready to engage constructively with the Prime Minister and other officials to help design a fair system that protects consumers, rewards competence and supports good businesses.