CASH RETENTIONS IN THE CONSTRUCTION INDUSTRY

Early day motion 428, tabled 15 November 2001 by Claire Curtis-Thomas (Labour). Signed by 153 members.

That this House believes that the system of cash retentions in the construction industry places an unfair burden upon the majority of small firms in the industry that are required to finance retentions which have been estimated at any one time to be over ú3 billion and the extra costs associated with the widespread abuse of the system; further believes that this anachronistic and adversarial method of dealing with defects does not improve the quality in construction; urges the Chief Secretary to the Treasury to announce without further delay the phasing out of the retention system, recognising that retentions are inconsistent with the aspirations underpinning the Office of Government Commerce's Achieving Excellence programme that requires government clients to pursue value for money procurement strategies and institute teamworking on projects following the example of some major government procurers such as Defence Estates and Inventures which have already abandoned retentions; and calls on the Secretary of State for Transport, Local Government and the Regions to issue a circular to all local authorities in England advising that they are to refrain from requiring retentions on all new construction works to reflect the view of the Local Government Task Force that retentions are not compatible with a collaborative approach such as partnering.

Signatures by party: Labour 86, Liberal Democrat 23, Conservative 22, Labour/Co-operative 10, UUP 5, Plaid Cymru 3, Social Democratic and Labour Party 2, DUP 1, Independent 1.