NFRC talks retentions at UK Parliament
Members of NFRC (National Federation of Roofing Contractors) and other industry representatives were at the Houses of Parliament yesterday evening (5 July) to talk to MPs and Lords to improve their awareness of the problems caused for sub-contractors by cash retentions. NFRC estimates that £300m of cash is held in retention just in the roofing and cladding industry. Despite efforts by some organisations in the wider construction industry to decrease the use of cash retentions, recent surveys of NFRC Members reveal that 78 per cent of contractors say they are facing levels of retention that are higher or the same as were seen a year ago. The surveys also saw contractors call the process of chasing retention payments ‘unnecessary', ‘tortuous' and ‘psychologically damaging'. NFRC is calling on government to engage with sub-contractor organisations on the retentions issue, and inform them on why firms would benefit from an end to the practice. Andrew Lewer MBE MP, who is also Chair of the All Party Parliamentary Group on SME Housebuilders, hosted the reception. Parliamentarians who attended the event were supportive of the message and recognised the serious financial problems that retentions can contribute to. NFRC will continue to work with them to take the issue to government.
NFRC CEO James Talman addresses MPs and Lords at House of Commons with Andrew Lewer MBE MP in the foreground James Talman, NFRC CEO, said: ‘At best, retentions are an extra burden on time-poor microbusinesses, at worst, they reduce sub-contractors to operating at a loss and sometimes even facing insolvency. ‘Ending this practice would encourage business investment in skills and expansion by improving construction SME cashflow, freeing up hours of wasted time chasing owed monies, and reduce the number of sub-contractor businesses that decide they just cannot carry on. This outdated practice has persisted for long enough, and government should lead the way on bringing it to an end. Retaining skills and not cash has better outcomes all around.'
