Tag : cash retentions
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.
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.
The Specialist Engineering Contractors’ (SEC) Group has backed proposed legislation introduced to parliament this week that would require government and other public sector contracts to make use of project bank accounts.
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 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.
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.
Two major outsourcing groups working across the UK construction sector have this week announced they are entering administration.
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.
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.
A new bill mandating that all cash retentions from construction work are held in deposit protection schemes receives its first reading in parliament today.