A SEC Group delegation led by MP Claire Curtis-Thomas has won government support for a task force to stamp out retention and bad payment practice in construction after a Downing Street date.
The SEC Group is to set up a task force to tackle bad payment practices in construction, following a meeting at 10 Downing Street. A delegation, led by MP for Crosby Claire Curtis-Thomas and including SEC Group chair Trevor Hursthouse, chief executive Rudi Klein and executive secretary John Nelson, met with Geoffrey Norris, special adviser in the Prime Minister’s Policy Unit with responsibility for trade and industry issues.

Following the meeting, the government has thrown its support behind the creation of a task force to address these issues. This will be chaired by Curtis-Thomas. Chief secretary to the Treasury Paul Boateng and construction minister Nigel Griffiths have both been invited to nominate an official from their departments.

The task force will:

  • monitor progress in removing retentions on government projects;
  • support the Office of Government Commerce in its attempt to reach a target of defect-free construction on 70% of all construction projects by March 2005;
  • promote alternative mechanisms for government projects that reinforce team working arrangements, while enhancing payment security and avoiding retentions;
  • put in place measures to provide small and medium-sized firms with greater protection from the insolvencies of upstream payers.

  • The Local Government Association/ Federation of Property Societies has issued guidance on retentions to chief executives of local authorities, clerks to police, joint fire and transport authorities.

    The guidance says: “Retentions are not compatible with long-term partnering arrangements as recommended by Rethinking Construction. They are an added cost to the client and add no value to the project. Retentions are not within the spirit of Rethinking Construction and need to be phased out.”

    The full guidance note can be viewed on www.secgroup.org.uk. It is recommended that contractors remind authorities of the guidance during contract negotiations.

    • Source

    Electrical and Mechanical Contractor