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Industry leaders to present Aldous Bill petition to 10 Downing Street

10 April 2018

A petition on fair payment and retentions will be delivered to Prime Minister Theresa May later this month by Peter Aldous MP and a delegation of industry leaders. The group will take the petition to 10 Downing Street on Monday 23 April at around 1.30pm.

The group of industry leaders presenting the petition includes FSB National Chair Mike Cherry, FMB Chief Executive Brian Berry, Director General of the Institute of Directors Stephen Martin, ECA CEO Steve Bratt and BESA CEO David Frise.

BESA and ECA, who are coordinating the presentation on 23 April, are urging the industry to support the petition, which comes just four days before the second reading of the ‘Aldous Bill’ (Friday 27 April), which proposes cash retentions owed to suppliers are held in trust accounts.

ECA CEO Steve Bratt commented:

“Putting retentions in trust is a vital first step in helping to protect the supply chain from future upstream insolvency, and it will also help to prevent the abuse of retention monies owed to the supply chain.”

“Our petition aims to raise awareness of this critical issue with the Prime Minister in advance of the Aldous Bill being heard in Parliament. We urge the entire construction industry to back the bill and show support for immediate retentions reform.” 

BESA CEO David Frise said:

“This represents a tremendous show of support from industry and MPs. At its best, the industry can deliver a first-class built environment, but cash retentions impact every one of the 330,000 SMEs and sole traders represented in this petition. We need reform now and the proposal to hold cash retentions in trust will be a start to demonstrate lessons have been learned from Carillion.”

FSB National Chairman Mike Cherry said:

"As Carillion’s liquidation showed, smaller contractors can be hugely and unfairly hit by the collapse of a bigger firm which hired them going bust and leaving them out of pocket. It defies natural justice that a contractor which completes a job and does it well can be left exposed in this way."

"Withheld retentions were originally intended as security in case a firm doesn’t return to rectify non-complying work. In modern practice, they are withheld to boost the cash flow of the party withholding them. The proposal to hold retentions in trust would be a sensible way to prevent this from happening, and protect small hard-working businesses in the supply chain against a Carillion-style financial demise."

Reform of unfair payment practices, including excessive withholding of retentions, is already supported by over 75 industry trade bodies, representing over 330,000 companies and self-employed professionals. Support has been given from across the entire construction supply chain, including house building, roofing, scaffolding, electrical, heating, plumbing, interiors and demolition (see below for complete list).

Payment abuse has climbed up the political agenda since construction giant Carillion collapsed just six days after the first reading of the Aldous Bill, leaving many SMEs owed huge sums of money. Had retentions owed by Carillion to suppliers been held in trust, this money could have been recovered.

 

Official support has already been received from:
Apprenticeships 4 England (App4Eng)
Asbestos Control and Abatement Division (ACAD)
Asbestos Removal Contractors Association (ARCA)
Association for Environment Conscious Building (AECB)
Association of Brickwork Contractors
Association of Ductwork Contractors and Allied Services (ADCAS)
Association of Fencing Industries
Association of Geotechnical & Geoenvironmental Specialists (AGS)
Association of Independent Professionals and the Self Employed (IPSE)
Association of Plumbing and Heating Contractors (APHC)
British Automatic Fire Sprinkler Association (BAFSA)
British Blind & Shutter Association
British Board of Agrément
British Coatings Federation
British Constructional Steelwork Association (BCSA)
British Drilling Association (BDA)
British Electrotechnical and Allied Manufacturers Association (BEAMA)
British Flue & Chimney Manufacturers Association (BFCMA)
British Refrigeration Association (BRA)
British Woodworking Federation 
Builders Merchants’ Federation (BMF)
Building Controls Industry Association (BCIA)
Building Engineering Services Association (BESA)
Building Engineering Services Competent Assessment (BESCA)
Catering Equipment Distributors Association (CEDA)
Chartered Association of Building Engineers (CABE)
Chartered Institute of Plumbing and Heating Engineering (CIPHE)
Chartered Institution of Civil Engineering Surveyors (CICES)
Confederation of Construction Specialists
Confederation of Roofing Contractors
Contract Flooring Association
Drilling & Sawing Association
Electrical Contractors Association (ECA)
Electrical Contractors’ Association of Scotland (SELECT)
Fan Manufacturers’ Association
Federation of Environmental Trade Associations (FETA)
Federation of Master Builders (FMB)
Federation of Small Business (FSB)
Federation of Traditional Metal Roofing Contractors (FTMRC)
Finishes and Interiors Sector (FIS)
Fire & Security Association (FSA)
Forum for Private Business 
Glass & Glazing Federation
Ground Source Heat Pump Association (GSHPA)
Guild of Architectural Ironmongers
Heat Pump Association (HPA)
Heating, Ventilation and Air Conditioning Association (HEVAC)
Institute of Clerks of Works of Great Britain
International Powered Access Federation (IPAF) 
Kitchen Bathroom & Bedroom Specialists Association (KBSA)
Lead Contractors Association
Lift and Escalator Industry Association (LEIA)
Local Authority Building Control (LABC)
Modular and Portable Building Association (MPBA)
National Access & Scaffolding Confederation (NASC)
National Association of Professional Inspectors & Testers (NAPIT)
National Association of Rooflight Manufacturers (NARM)
National Association of Shopfitters
National Federation of Builders
National Federation of Demolition Contractors (NFDC)
National Federation of Roofing Contractors
Painting & Decorating Association
Process Innovation Forum (PIF)
Prompt Payment Directory
Property Care Association 
Roofing Industry Alliance
Scaffolding Association 
Scottish and Northern Ireland Plumbing Employers’ Federation (SNIPEF)
Single Ply Roofing Association (SPRA)
Specialist Engineering Contractor’s Group (SEC Group)
Stone Federation of Great Britain
Structural Timber Association
Tile Association
Thermal Insulation Contractors Association (TICA)
Well Drillers Association

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