MPs to debate cash retentions in construction
The issue of cash retentions in construction is to be debated at Westminster this week.
Kilmarnock and Loudoun MP Alan Brown has secured the debate which will argue that the government should decide on a solution to the issue of cash retentions, following its public consultation in 2018.
It will highlight the need for legislation that can protect cash retentions and remind of the risk for construction SMEs if no action is taken.
The Specialist Engineering Contractors’ Group (SEC Group) has been urging the government to introduce legislation to protect or ring-fence cash retentions to remove the insolvency risk and ensure that retentions are released on time. Together with a consortium led by Pay2Escrow and including a global insurer, a major UK university, industry participants and a specialist technology partner, SEC Group has been supporting the development of a retention deposit scheme (Retention Deposit Clearing House).