Engineering services alliance, Actuate UK, welcomes Government’s intention to act on its proposed reforms on late payments and take legislative measures to ban the use of retentions in construction contracts.
Actuate UK and its members have been calling for a legislative change to stop the payment abuse of cash retentions in construction. We will continue to engage with Government and our members to ensure the implementation of this action is effective and drives the cultural change in our industry towards a safer and higher-quality built environment.
Steve Bratt, CEO of ECA & chair of the Actuate UK Business Group said: “Government has delivered for industry and industry must now embrace the robust implementation of these measures designed to unlock our capabilities.”
David Frise, CEO of BESA, added: “This is a landmark moment for our industry and the wider engineering services sector. We have been campaigning for many years to end the unfair and outdated practice of retentions, which has placed an unacceptable financial burden on specialist contractors.”
We also welcome the Government’s reforms that will see stricter maximum payment terms enforcements, fines for businesses that persistently pay late, statutory interest on late payments and more vigorous reporting from large companies. We are pleased to see the new powers to Small Business Commissioner’s Office (SBC). Although the construction sector will not directly benefit from it (as not in scope of SBC) the proposed improvements will improve the general payment conditions in the economy.
Rob Driscoll, ECA Director of Legal & Policy, commented on behalf of Actuate UK’s Business Group: “These announcements demonstrate Government’s recognition of the value strong supply chains play in the UK’s growth agenda. Retentions have plagued our industry for too long holding back, skills, technology and growth”.
Debbie Petford BESA's director of legal and member of the Actuate UK Business Group: ““We have been waiting a long time for meaningful reform backed by legislation, and the proposed ban on retentions is a critical part of that. While there is still work to do on implementation, this is a major step towards creating a business environment where firms can thrive, not just survive.”
Engineering services alliance, Actuate UK, welcomes the first ever sector skills plan for the Engineering & Building Services brought together by the Engineering & Building Services Skills Authority (EBSSA) with input from Actuate UK and its members.
Engineering services alliance, Actuate UK, welcomes the new Government consultation on reforming cash retentions and taking legislative measures against late payments to small businesses, as part of the new Small Business Plan. Withholding retentions across the supply chain has been an outdated practice which disproportionally impacts the cashflow of small businesses across the construction. Actuate UK and its members will now widely consult and submit a response supporting a solution that is fair, enforceable and sustainable.
The Engineering & Building Skills Authority (EBSSA) has welcomed the launch of the Construction Skills Mission Board (CSMB) – their inaugural meeting taking place today. Building services are represented by T Clarke CEO Mark Lawrence, who will be supported on this work by Actuate UK member ECA and EBSSA.