Construction Industry: Retention Payments

Lord Bourne of Aberystwyth Excerpts

Thursday 14th January 2021 Lords Chamber

[Lord Callanan (Con)]

We are not waiting for other people to come to their decisions. We are actively working with the Construction Leadership Council to try to find a solution to this problem.

[Lord Bourne of Aberystwyth (Con) [V]]

My Lords, this is clearly a serious problem. In the meantime, the building industry has committed to achieving zero cash retention by 2025. Can the Minister inform us how that process is being pursued? What success are we having?

[Lord Callanan (Con)]

A lot of discussions are taking place between the Government, the Construction Leadership Council and different parts of the industry; we are actively exploring possible solutions and are committed to improving payment practices and working with the construction industry to take this forward. Of course, any solution has to work for the industry and its clients, and it has to be sustainable, addressing all of the issues: the need for surety and fair, prompt payment. As I said earlier, several policy options are being considered, including a possible retention deposit scheme and, of course, phasing out retentions completely. During the current pandemic, the Government, in conjunction with the Construction Leadership Council, have provided guidance to the industry on responsible and fair contractual behaviour, which, of course, includes retentions.