The government is at last considering a problem that affects many contractors and sub-contractors and blights the construction industry, namely, the issue of the non-release of retentions. I know from personal experience of clients who have suffered major issues because retentions are not released to them at an appropriate time. This consultation is looking at issues such as:

. How many parties have lost retention monies due to contractor insolvency.

. How some employers have unlawfully made payments of retentions conditional upon performance of obligations under other contracts.

. Non-payment of retentions which is affecting contractors and other subcontractors further down the supply chain.

The consultation is looking at payment of retentions in practice, whether they should be a limit on the time that retentions can be held together with possible alternatives like project bank accounts, escrow accounts and retention deposit schemes.

This is something that causes  major issues for people in the construction industry and a solution to these issues would help all of us in the UK.