Tag : cash retentions
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.
The building services industry is calling on Chancellor Philip Hammond in his upcoming budget to make clear commitments to enforce prompt payments and reform current cash retentions policy in order to protect SMEs in the sector.
The government has today launched a call for evidence concerning how best to end the practice of late payments to small businesses.
Almost nine out of ten local councils in the UK are failing to pay companies for construction work within the legally required 30-day period, according to findings from BESA and the ECA.
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 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 Federation of Environmental Trade Associations (FETA) has welcomed the first reading in parliament of a new bill that would put a statutory obligation on any construction or building services group withholding cash retentions to use an approved deposit scheme.
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.