SEC calls on councils for better retentions practice

Lord O’Neill: anxious about SMEs in construction

The Specialist Engineering Contractors (SEC) Group is calling on local authorities to protect retention monies belonging to SMEs in their supply chains. The SEC conducted a survey of local authorities to highlight their use of retentions and the lack of guidance on bestpractice.

Over 77% of local authorities deduct a 5% cash retention. And 53% of councils use these retentions to bolster their working capital or to fund other activities – 6% of councils invest the retentions in overnight money markets. Over 62% of councils are failing to ensure that 30 day payment clauses are included in sub-contracts.

SEC Group president, Lord O’Neill says that parliament is becoming increasingly anxious about the position of SME’s in construction: “We have repeatedly asked the government to take action on cash retentions by adopting the Aldous Bill.”

Related links:

• www.ses-group.co.uk

Related articles:

• SEC welcomes government action on supply chains with new measures
• Government asked not to kick retentions ‘into the long grass’
• Government highlights public sector on rules on supplier payment
• Government must act faster on late payment abuse – SEC Group
• SEC calls for action on payments