Cash retentions in the construction industry
The AECB are supporting this important piece of legislation. On 24 October, the Department for Business, Energy and Industrial Strategy began a consultation, which ended on the 18th January, on the practice of cash retentions in the construction industry. That followed an independent and long-awaited review which confirmed that retentions are a critical issue that affect the viability and productivity of small and medium-sized enterprises in the construction supply chain. They also increase the cost of construction. Across the industry, there is very strong support for putting a solution in place now, with specialist engineering contractors recommending that a statutory ring fence of retentions is the best option.
Further information can be found here