Tag : cash retentions
The Specialist Engineering Contractors’ (SEC) Group has expressed concern over new research concluding that £700m in construction cash retentions has been lost over a three-year period due to insolvencie
A new bill to be introduced to parliament that sets out new rules for managing cash retentions will be backed by a number of industry bodies such as BESA and electrical and engineering services group ECA.
A new bill mandating that all cash retentions from construction work are held in deposit protection schemes receives its first reading in parliament today.
MP Peter Aldous has presented the first reading of the Construction (Retention Deposit Schemes) Bill in parliament today that seeks to amend existing regulation to put a statutory obligation on any group withholding cash retentions to use an approved deposit scheme.
The construction industry has reacted to Carillion’s liquidation today by calling for further government commitments to guarantee prompt and transparent payment mechanisms for contractors.
919 employees working on government or key UK infrastructure jobs for collapsed construction giant Carillion will retain their jobs, the Official Receiver has announced. However, 377 employees on the same contracts will be made redundant as a result of the company entering liquidation last month.
BESA and the ECA hope to step up pressure on the government to overhaul cash retentions by calling for the introduction of mandatory third-party deposit schemes in a joint response to a recent consultation.
Build UK is seeking to introduce a “zero retentions” policy throughout the construction supply chain within seven years as a key policy priority to improve trust in the industry and its practices.
A second reading in parliament of a bill that would mandate the use of accredited third-party deposit schemes to hold cash retentions has been postponed until June 15 after originally being scheduled for this week.
A second reading in parliament of a bill intended to ringfence cash retentions within the construction supply chain will be further delayed until October, with trade bodies supporting the bill hoping to use the time to build wider consensus among MPs to push for reform.