Tag : retentions reform
Devolved authorities in Scotland and Wales could set important precedents to introduce ringfenced cash retention schemes for private sector contracts to help tackle industry concerns about bad payment practice, industry body BESA has said.
Fears across Whitehall of another insolvency of a major construction group, similar in scale to the collapse of Carillion last year, reflects a continued lack of political action on payment practices, BESA has warned.
A survey of over 600 hundred business owners working across the HVAC and building services sector has found a strong majority have suffered stress and other significant mental health issues as a result of poor payment practices.
Parliament’s Business, Energy and Industrial Strategy (BEIS) Committee has urged the government to bring forward proposals to introduce mandatory project accounts with a mechanism to independently release cash retentions owed to contractors.
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.
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.