Update on Construction industry payment practices

Payment practices, especially  retentions, are of interest to a number of our members, particularly  those involved in installation aspects. You may recall that we have in the past leant our support to sister organisations such as BESA, ECA and the SEC Gp in their efforts to champion this cause – most notably the work done last year by Mr Peter Aldous MP to promote his  Construction (Retentions Deposit Scheme) Bill. Although it had garnered considerable cross-party support it fell victim to the lack of parliamentary time as BREXIT and the General Election intervened.

Nevertheless, the fight continues and the Labour peer Lord Mendelsohn has taken over the cause from Mr Aldous and is promoting a bill which goes even further in its aims. Details of this encouraging development are in the following link:

https://www.theconstructionindex.co.uk/news/view/lobbying-lord-leads-latest-drive-for-payment-reform

In a separate development the Scottish Government are carrying out their own consultation on retentions. They commissioned some independent research; the culmination of which saw the following recommendation:  “that a fairer, more neutral and more protected approach to the practice of retentions should be sought” and they now seeks views on this. Members who are interested in this topic may find the arguments laid out in the preamble to the consultation document of interest.

Clearly those who feel strongly about this issue are encouraged to take part as, if Scotland can be persuaded to legislate,  then this is all to the good. Please note that respondents do not have to be based in Scotland to take part. The closure date is 25^th March 2020.

Details are at the following link:

https://www.gov.scot/publications/practice-cash-retention-under-construction-contracts/pages/2/

23-01-2020