Representatives of the construction industry and supply chain have called on the Government to abolish the practice of retentions in the construction industry.
Representing the supply chain, from clients and contractors, and manufacturers and suppliers, Build UK, the Civil Engineering Contractors Association (CECA), and the Construction Products Association (CPA), have responded to the Government consultation on the Practice of Cash Retention under Construction Contracts.
The associations have made a case for a joint approach of Government legislation to abolish retention, supported by the industry developing and implementing a phased roadmap, as the only way to achieve the cultural change needed on this issue.
They say that cash retention – the withholding of a percentage of payment on construction work until it is certified as having been completed free of defects – is problematic for all parties, having a significant impact upon cash flow and working capital throughout the supply chain.Continue Reading at UK Construction Online
Originally published on 01 February 2018 by:
UK Construction Online