Tag : cash retentions
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.
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.
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.
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.
Amendments to the role of the UK small business commissioner to penalise late payments and improve transparency within supply chains will be the subject of an upcoming government consultation.
A new bill mandating that all cash retentions from construction work are held in deposit protection schemes receives its first reading in parliament today.
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.
The SEC Group has accused the government of failing to introduce meaningful changes to construction payment practices in response to multiple concerns identified around procurement and contracting following the collapse of Carillion.
Two major outsourcing groups working across the UK construction sector have this week announced they are entering administration.
Network Rail’s pledge to reform prompt payment practices and abolish the use of retentions in its contracts has been hailed as a strong template for the wider construction industry and building services sector to follow.