Cash retentions in construction
05 December 2017
As many contractors will know, the practice of cash retentions has long created substantial cash-flow problems for SMEs in construction. In the last three years alone, almost £8 billion in retention monies has been unpaid in the industry.
The Government is now consulting on the issue of cash retentions in construction, until 19 January 2018. There is also set to be a parliamentary debate on this issue on 9 January, initiated by BESA and ECA. During this time, it is vitally important that the voice of our sector is, once again, heard loud and clear.
As part of this, ECA is urging businesses across industry to undertake two actions, as follows:
1. Please complete our contractor survey on retentions, which will help ECA’s submission to the Government on this issue. The ECA survey is open until midday Monday 18 December and can be completed here.
2. Please send our template letter on retentions to local MPs. This asks they raise this issue in Parliament and with the minister responsible for construction. Please click here to download the letter. You can find out who your local MP is here.
Many thanks in advance for your time and input on this important subject, which will help ECA and our partners to represent the interests of members to the Government, and other key politicians and decision-makers.