The Government has launched yet another consultation on retentions to the dismay of trade contractors who want to see the practice radically reformed or abolished altogether.
The latest consultation comes after the Department for Business, Energy and Industrial Strategy acknowledged that “unjustified late and non-payment of retention monies is a significant issue for some contractors”.
Leading trade bodies are calling for retention cash to be held in trust after an estimated £7.8bn went unpaid to subcontractors over the last three years.
They then want to see the whole retention system ripped-up within the next decade.
ECA Director of Business Paul Reeve and BESA Director of Commercial and Legal Rob Driscoll jointly commented: “While the significant and unacceptable problems of cash retentions in construction have been identified by independent research, and even acknowledged by government, the government has chosen to consult once again on the extent of the problem and what to do about it.
“The BESA and the ECA will continue to call on the government to ensure that all cash retentions are held in trust as soon as possible, and to phase them out entirely by the early 2020s.
“For the good of the economy, and the supply chain, we need a firm commitment to remove the retentions issue.”
The latest government consultation runs until January 19.
Firms can access all the reports and have their say online here
from Construction Enquirer http://www.constructionenquirer.com/2017/10/25/government-dithers-over-retentions-reform-for-subbies/
via Tumblr http://ndbasilica.tumblr.com/post/166772162069
No comments:
Post a Comment