Rudi Klein steps down from Specialist Engineering Contractors’ Group

Rudi Klein is stepping down from his role as CEO of the Specialist Engineering Contractors’ (SEC) Group at the end of the year. In a career spanning more than 30 years, he has been seen as a major force driving industry improvement.

Professor Klein is particularly noted for his work in leading campaigns against payment abuse which has been (and remains) a major barrier to achieving a more efficient and productive UK construction industry.

He led the industry’s efforts to secure legislation in 1996 (Housing Grants, Construction and Regeneration Act better known as the Construction Act) to outlaw some of the worst commercial practices, such as pay-when-paid clauses, and subsequently lobbied successfully for amendments to improve the Act.  He is credited with achieving the statutory right of suspension of work for late or non-payment.

He is generally regarded as the leading UK authority on the use of project bank accounts which ensure that payments for construction SMEs are protected in ring-fenced accounts from losses due to upstream insolvencies.

Following the collapse of Carillion he renewed his efforts to promote the use of PBAs by drafting a Private Members’ Bill for Debbie Abrahams MP which sought to mandate the use of PBAs for all public sector projects over £½ million.

Over many years he has led calls for reforming the practice of retentions in the construction industry – a practice increasingly recognised as obsolete and sustained principally for the purpose of maintaining cashflow within companies which withhold monies due to their supply chains. In 2015 he successfully worked with Lord Aberdare in the House of Lords to persuade the government to review the practice.  The same commitment to reform led to him to draft a Private Member’s Bill for Peter Aldous MP aimed at protecting retentions in a statutory scheme.

Professor Klein said that he was extremely proud of SEC Group’s achievements over the years: “I had a very small team but we were always keen to deliver on a number of priorities that would be of tangible benefit for the majority of firms – mainly SMEs – in the industry.”

Outgoing SEC Group chairman Trevor Hursthouse said: “Rudi’s determination to cut through the seemingly endless industry reviews, reports and often ignored recommendations and deliver tangible outcomes which bring real benefit to the industry is self-evident.”

Debbie Abrahams MP, who has worked closely with Professor Klein over many years, said: “Rudi has been a tireless advocate to tackle poor payment practices and late payments for decades.  His expertise and knowledge on late payments and Project Bank Accounts has been invaluable and he has helped effect real change in pressing the Government to improve payment practices, particularly for small businesses.”

Tributes have also come from the CEOs of SEC Group’s member associations. Speaking on their behalf David Frise, the CEO of the Building Engineering Services Association, said: “Nobody could have fought the good fight on behalf of SMEs with greater passion and commitment over such an extended period than Rudi. His burning desire to see right prevail and for hard pressed contractors to receive their due payments has never let up and he has demonstrated his brilliant and innovative legal brain on countless occasions to try and redress the balance in their favour.

“Late payment and unfair working practices continue to blight the industry and put the future of many vital businesses at risk, but the situation has improved immeasurably thanks to Rudi.”

Professor Kelin’s support for the sector will continue in an advisory capacity through his own legal consultancy which will also provide support to industry groups and firms across a wide range of procurement – related and payment issues.