INDUSTRY NEWS
MPs QUESTION GOVERNMENT OVER CASH RETENTIONS
companies from their SME contractors SNP MP Stuart C. McDonald has urged the Government
M
to reveal how it is going to resolve the issue, which is affecting the livelihood of small firms in the construction industry.
In addition, the Member for Cumbernauld, Kilsyth and Kirkintilloch East has asked the Department of Business Energy and Industrial Strategy what the Government’s policy is on the non-release or late release of cash retentions in the construction industry. His question was also echoed by Labour MP for Chesterfield, Toby Perkins. BEIS Minister for Small Business Rt Hon Margot James MP was quick to assure that the Government’s long overdue review on retentions will be published shortly and will consider, together with Construction Act review, actions including ring-fencing of retentions. She commented: “Unjustified late and non-payment of a
retention payment or any amount owed is unacceptable. These practices cause particular problems for small businesses in the construction sector, and the Government is committed to tackling them.” Prior to the latest election, Alan Brown MP urged the
Ps have been tackling the Government over the prickly issue of millions of pounds in cash retentions said to be withheld by construction
Government to provide a solution to this outdated practice specific to the construction industry: He said: “The problem has been known about for around
50 years, and I was able to get cross-party support for a private Member’s Bill on the issue in the previous Parliament. I even had support from the DUP, so perhaps it really is something that should be brought to the table. If we want to increase productivity and have more efficient infrastructure, it really would be an easy start.” Cash retentions involve holding back monies from due payments ostensibly as security in case a firm does not return to rectify defects. In reality the system is regularly abused. The money is used to bolster the cashflow of the party deducting it and in many cases the money is released years after completion of the work or not at all. In February, the Specialist Engineering Contractors’ (SEC)
Group revealed over £1bn cash retentions are held by UK top construction companies from their SME sub-contractors. Speaking on behalf of the SEC Group, CEO Rudi Klein said that there has been tremendous support from both Houses in Westminster on this issue. He added: “After many years of SEC Group campaigning on this issue it seems that we are now making progress towards protecting cash retentions. This has to be the road map to enabling construction SMEs to grow and innovate.”
Inbrief
Hitachi Air Conditioning Europe has agreed a new partnership with heat pump distributor, Freedom Heat Pumps, based near Eastleigh in Hampshire. Freedom presented the new heat pump range to key customers at Hitachi’s training centre in Maidenhead.
www.hitachiaircon.co.uk
The Construction Industry Council (CIC) 2050 Group has launched a major new survey - 'Looking towards an evolving construction industry' - with the aim of gaining an on-the-ground perspective of the inspirations and challenges of working in the construction and built environment industry.
cic.org.uk
Aspen Pumps Limited, the global leader in condensate pumps, has announced its investment in JAVAC UK, a UK air conditioning and refrigeration (ACR) tool specialist.
www.aspenpumps.com
www.heatingandventilating.net
July 2017
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