The FPS agrees with Build UK and CECA, that cash retentions cause significant issues across the supply chain.
As alarmingly and publicly demonstrated by Carillion entering liquidation in January 2018, the abuse of the practice (including late and non-payment) must be urgently addressed.
Alasdair Henderson, Chair of the FPS, said: “It is good to see retentions back on the legislative agenda as it is a real and concerning issue to our [FPS] members as well as the much wider construction sector. The FPS, together with many other industry bodies, has long called for the introduction of legislation, such as that which exists already in parts of Europe, to ensure that cash retentions are protected from insolvency risk and released on time. More broadly, the FPS endorses the joint Build UK/CECA Retention Roadmap towards eliminating cash retentions in the industry by no later than 2025 as part of our consistent support for responsible commercial practices in construction.”