Main contractors call for end to retentions

Grant Prior 6 years ago
Share

Main contractors and clients  are backing the campaign to end retentions in construction.

Calls to abolish the hated system have been led by specialists.

Now the major players through their industry trade bodies are calling for change in the wake of Carillion’s collapse.

Build UK, the Civil Engineering Contractors Association and the Construction Products Association have added their voice to calls for reform.

Build UK also represents a growing number of clients.

A joint submission to ongoing government consultation said: “The industry is fully committed to achieving zero cash retention and we believe that Government must introduce legislation to ensure there is zero cash retention within the industry by no later than 2025.”

The trade bodies said abolition of retentions would mean:

    • An increase in working capital within the supply chain to support investment, productivity and growth;
    • Without the threat of unfair payment, there would be an incentive to improve quality of completed works on construction projects as well as increased assurance that any defects that did occur would be rectified appropriately; and
    • Increased collaboration and transparency in the construction industry by ensuring that any forms of security used against defects would be appropriate and proportionate.

Build UK Chief Executive Suzannah Nichol MBE said:“The collapse of Carillion has reinforced the need for significant change in the construction industry, and we urge Government to take legislative action to abolish cash retention.

“The industry is ready to support this by implementing a phased approach to zero retention, in partnership with Government.”

Alasdair Reisner, Chief Executive at CECA, added: “CECA has long supported the abolition of retentions.

“The use of improperly managed retentions by employers often has substantial impacts on SMEs further down the supply chain as these companies operate within extremely tight margins and reserves.

“Carillion’s collapse has highlighted once and for all how change is needed in our industry.

“As a first step, we call on Government to legislate to abolish cash retentions and work with industry to implement an agreed route map based approach to achieve this ambition.”

Latest news

Willmott Dixon set for Manchester science park job

Contractor understood to be in final stages of talks to land £75m Greenheys building
2 days ago

Stewart Milne went down owing supply chain £153m

So far 1,375 firms have come forward with unpaid bills
3 days ago

Didcot disaster investigation enters its ninth year

Still no answers for families of quartet killed in demolition collapse
2 days ago

Mount Anvil wins £275m Westminster estate renewal

First phase of Church Street area regeneration will deliver 400 new homes and a library
3 days ago

Trio of A47 road upgrades to go-ahead as legal challenge fails

20-month delay adds tens of millions to dualling costs
3 days ago

Skanska and Morgan Sindall win £277m duo of Cambridge jobs

Railpen awards £200m Botanic Place and £77m Devonshire Gardens office jobs
3 days ago

Offsite specialist Merit sees profits grow

Contractor sees further growth in turnover and profits
2 days ago

Morgan Sindall delivers another record year of profit

Revenue tops £4bn as pre-tax profit soars 70% to £144m
3 days ago

Galliford Try nets two pipelines and road job worth £98m

Firm wins £64m of Thames Water pipelines and Halifax road improvements
2 days ago

HS2 viaduct blunder over wonky concrete segments

Align JV now drilling out concrete joint as part of week-long remedial work
4 days ago

City of London hots up as 9m sq ft under construction

Investors return to City as "10 Cheesgraters" of floorspace under construction
4 days ago

Four arrested in £140m property fraud probe

Serious Fraud Office investigating collapse of property developer Signature Group
4 days ago

McLaren gets green light for 31-storey student tower

Revamp of historic Birmingham site will provide 759 student beds and 189 apartments
3 days ago

BT Tower to become hotel

New owner MCR Hotels to transform iconic building
3 days ago

Plans in for first phase of £1.7bn ID Manchester

Plan to reinvent 1960s Renold Building as a new innovation hub
3 days ago

London £3bn housing framework out to tender

SMEs allocated slots on London Construction Programme housing framework refresh
4 days ago

BAM wins first major RAAC school rebuild

Contractor seals £46m deal for St Leonards school in Durham
4 days ago

Failed strip out specialist owes £1.5m to supply chain

More than 100 subcontractors and suppliers left with unpaid bills by Type Ten Limited
4 days ago

Councils to turn screw on building owners over fire safety upgrades

Government tells councils to step up legal action against rogue building owners
4 days ago

Green light for £300m Fenland energy from waste scheme

Wisbech incinerator will generate 50MW from half a million tonnes of waste
5 days ago

Multiplex starts on 50-storey Thames tower

Developer green lights construction of latest phase of £3bn Bankside Yards scheme
5 days ago

McLaren lodges fresh Reading Broad Street Mall plan

Town centre scheme will deliver 600 homes in four towers
5 days ago

Beard bags £24.5m Bristol office revamp

Construction to start in April
4 days ago

SMEs star in £3.2bn social housing upkeep deal

Around 85% of Efficiency North's framework winners are local firms
5 days ago

Scottish NHS new building projects delayed for two years

Spending clampdown hits over a dozen planned projects
5 days ago

Balfour M25 workers hold strike ballot

Motorway maintenance crews unhappy with 3.4% pay rise offer
5 days ago

Rainsford Contracts acquires M&E specialist

Expanded contractor will have turnover of £45m
5 days ago

Statom expands with launch of Northern HQ

RC frames specialist now targeting jobs in Scotland and north of England
6 days ago

High Court dismisses Stonehenge tunnel challenge

Judge quashes legal challenge against Government consent for £1.7bn job
6 days ago

£1.5bn Teesside carbon capture scheme consented

Final investment decision expected this year for construction start
6 days ago

Contractor services