THE Scottish Government (SG) has announced a consultation on the use of cash retentions in the construction industry.
The move follows a review of the system of cash retentions carried out by consultants Pye Tait.
The Specialist Engineering Contractors (SEC) Group in Scotland has long campaigned for the introduction of legislation to ring-fence retention cash. The organisation claims the monies are often used to bolster the cashflow of large companies and even public sector bodies.
Alan Wilson, SEC Group Scotland’s national executive officer said, “Our message is clear. Cash retentions must be put in a ring-fenced account or scheme. In this way we are more likely to see the end of a 200-year-old practice which has been abused to the detriment of small firms which often wait years to get their retentions released.”
The closing date for the consultation will be March 25, 2020.