Fair payment
Working to end retentions
Research from NFRC shows that less than a third of our Members are paid within 30-day terms, and 86% have trouble getting paid retentions on local authority contracts. Retentions have repeatedly been reported as the number one issue facing our membership, and the antiquated practice needs to end.
Alarmingly, construction regularly sees the biggest number of administrations and liquidations by sector. The economic strain these companies are under is often driven or exacerbated by unfair payment practices.
The government has recently begun action on bills to address late payment practices and the use of retention clauses, which will require qualifying companies to publish information about their records from next year.
Time wasted chasing late payments and foregoing investment hurts productivity and can put businesses at risk. We are encouraged that government is addressing bad payment practices, but more work must be done.
NFRC will be involved in upcoming consultations on the bills, and we are always keen to hear from our Members about how to get this legislation right.
Last year, NFRC Members and other industry representatives met at Parliament to talk to and improve MPs and Lords awareness of the problems caused for sub-contractors by cash retentions.
NFRC will continue to work on behalf of our Members to take the issue to government and ensure businesses are paid fairly.
