UK construction firms which allow roadworks to overrun will have to pay £25,000 ($38,057) a day, ten times of the current daily penalty of £2,500 ($3,805) under new proposals put forward by UK Transport Minister Sadiq Khan.

The proposal will also give local councils more power to charge utility companies for inspecting roadworks in their streets.

Khan said these new measures show just how serious the UK Government is about tackling problems arising out of roadworks, which cost the country’s economy £4.2bn ($6.39bn) each year.

“There is no excuse for those companies that allow their works to drag on for longer than they should, causing inconvenience and frustration for the travelling public,” Khan said.

“The new charges and tougher inspection regime will provide a strong incentive for utilities to finish works on time or pay for the disruption they cause.”

The announcement is part of the Department for Transport’s street works action plan published in December 2009, aimed at reducing disruptions caused by street works.