Tag : MP Peter Aldous
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.
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.
BESA has said that more than 60 construction and maintenance trade bodies have now lent their support to the Construction (Retention Deposit Schemes) Bill that was introduced to parliament in January as a means to reform payment within the construction supply chain.
BESA has said a recent pledge from chancellor Phillip Hammond to support apprenticeships and tackle the issue of late payments is “timely” as it seeks to pass a new bill into law that reforms how cash retentions are managed.
The UK government is being urged by a key building services body to immediately introduce legislation to tackle the practice of late payments within the construction supply chain, rather than delaying potential reforms in favour of voluntary commitments or further consultations.
BESA has claimed that over 100 MPs have now expressed support for efforts to ring-fence cash retentions. The claims have been made as the organisation seeks to push regulatory reforms through parliament that would mandate the use of third party deposit schemes.
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.