The construction industry should be keeping a very close eye on parliament next week when the Construction (Retention Deposit Schemes) Bill is passed to MP's for a second read. There has been an increasing groundswell of support in recent months, no doubt partly due to the Carillion collapse, and it appears likely that retentions in the future may be placed into independently held protection schemes or project accounts.
Whilst the exact form of the bill is yet to be agreed, it appears that ring-fencing retentions (in one form or another) appears to be the future for construction projects.
Get in touch if you would like to talk through how this might work in practice and what changes may be required in standard form contracts
Over 100 MPs have pledged support for the industry’s call for the ring-fencing of retention monies in the construction industry