THE Construction (Retention Deposit Schemes) Bill has been published ahead of its second reading on Friday April 27.
The Bill stipulates that any clause in a construction contract enabling the deduction of cash retentions will be invalid unless the monies are protected within a retention deposit scheme. The Bill will apply to the whole of the UK.
The rules for establishing and operating retention deposit schemes will be contained in secondary legislation. Such schemes may simply provide a ‘custodial’ service to ring-fence the monies or could provide insurance-backed alternatives. Schemes would be expected to provide quick and inexpensive adjudication or mediation procedures to resolve any disputes holding up release of the monies.
The Bill is a Private Member’s Bill, having been introduced by Conservative MP, Peter Aldous, at its first reading in early January.
Speaking on behalf of SEC Group – which represents a number of construction trade association – CEO, Professor Rudi Klein said, “We know that Ministers are sympathetic towards the Bill but, at this stage, the Government must issue a robust public statement of support for the Bill.”
A direct link to the Bill is available here.