Culture change for retentions welcomed by CC

The Construction Confederation (CC) has given its seal of approval to a Parliamentary report which rules out using legislation to abolish retentions.

Instead, the Trade and Industry select committee identifies a change in attitude and encourages a culture of trust between clients, contractors and sub-contractors as the long-term solution to what it describes as an 'outdated practice'.

The report says the withholding of retentions places a heavy burden on many companies in the construction industry, particularly small and medium firms which make up the majority of firms in the sector.

And it concludes that introducing legislation would take the focus of the industry away from the need to alter methods of working between clients and contractors to improve relationships and to increase productivity.

CC deputy chairman Trevor Walker, who led the CC team which gave evidence, said: "The committee has clearly understood the issues surrounding the use of retentions and I am relieved that the report concludes that more legislation in our already over-regulated industry is not the answer to this particular problem.

"As the report rightly states, the changes in attitudes and growth in trust between clients, contractors and sub-contractors should lead to better productivity, fewer defects and greater client satisfaction."