{"id":40497,"date":"2018-04-18T14:31:52","date_gmt":"2018-04-18T13:31:52","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=40497"},"modified":"2018-04-18T14:32:58","modified_gmt":"2018-04-18T13:32:58","slug":"mps-back-construction-retentions-reform-bill-post-carillion","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/mps-back-construction-retentions-reform-bill-post-carillion\/40497\/","title":{"rendered":"MPs back construction retentions reform bill post Carillion"},"content":{"rendered":"

The number of cross-party MPs supporting a construction retentions reform bill has soared since Carillion collapsed in January, six days after the first reading of the Aldous Bill which seeks to place retentions into independently held protection schemes<\/h2>\n

More than 100 MPs including defence secretary Gavin Williamson, shadow chancellor John McDonnell, Liberal Democrat leader Vince Cable and Green Party leader Caroline Lucas support the bill, according to the Building Engineering Services Association<\/a> (BESA).<\/p>\n

Designed to provide security for cash retentions against insolvencies<\/a> of parties up the supply chain through the introduction of retention deposit schemes, the proposal\u00a0was first heard in parliament six days before Carillion entered compulsory liquidation on 15 January.<\/p>\n

However, the collapse of the construction giant has brought the\u00a0issue of retention payments into the spotlight.<\/p>\n

Electrical Contractors Association director of business Paul Reeve said: \u201cCarillion\u2019s collapse highlighted serious supply chain and procurement problems in construction, which need an urgent remedy.\u201d<\/p>\n

In the aftermath of Carillion\u2019s liquidation trade bodies Build UK<\/a>, the Civil Engineering Contractors Association (CECA)<\/a> and the Construction Products Association (CPA)<\/a> estimated that the failed contractor held some \u00a3800m in retentions when it went bust.<\/p>\n

A survey of 137 BESA and CECA members displayed the average retention is 5% of money payable to subcontractors.\u00a0This exceeds many supply chain profit margins. The survey also shows that 92% of respondents had faced construction retentions in the last three years.<\/p>\n

Conservative MP Peter Aldous \u2013 who first introduced the bill \u2013 said: \u201cIndustry support for reform to outdated payment systems\u00a0is at unprecedented levels, for which I am very grateful. Construction is an essential underpinning of our lives and work, and we need to support the industry and especially SMEs<\/a> to ensure future growth and prosperity.<\/p>\n

\u201cThe petition being presented represents over 330,000 businesses and there are over 100 of my Parliamentary colleagues that support reform to the practice of cash retentions.<\/p>\n

\u201cWe have a golden opportunity to improve the industry for the better, level the playing field for SMEs and protect thousands and thousands of jobs.\u201d<\/p>\n

He concluded: \u201cThe industry loses around \u00a31m for each working day, mostly from SMEs. There have been proposals to stop the abuse of retentions before, but this time there is the largest coalition on fair payments ever.\u201d<\/p>\n

David Frise, CEO of BESA said: \u201cThe urgent need for reform is clear from the cross-party support the Aldous Bill has. The impact from lost Carillion retention money on apprentices, jobs and investment in the sector is already evident. Holding cash retentions in trust will make sure that the money is safe and does what it is intended to do.\u201d<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

The number of cross-party MPs supporting a construction retentions reform bill has soared since Carillion collapsed in January<\/p>\n","protected":false},"author":16,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[712,824,676,283,276,701],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-40497","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-planning-construction-news","7":"tag-besa","8":"tag-carillion","9":"tag-construction","10":"tag-finance","11":"tag-government","12":"tag-supply-chain"},"acf":[],"yoast_head":"\nMPs back construction retentions reform bill post Carillion | Planning, Building & Construction Today<\/title>\n<meta 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