FMB joins SEC Group to combat retentions

Smaller firms in the Federation of Master Builders (FMB) have joined forces with the specialist engineering contractors of the SEC Group to form a united front in the continuing battle to stamp out the use of retentions.

SEC Group chief executive Rudi Klein said: "The question of retentions must be seen and addressed as an industry issue that continues to have an impact on the whole of construction."

FMB director general Ian Davis added: "The practice of retentions is detrimental to the profits of small- and medium-sized enterprises - as recognised by the recent trade and industry select committee report."

The two trade bodies are to co-ordinate their efforts and have agreed that:

n Improvements in the industry's performance are to be achieved by collaborative working and ensuring that firms are qualified to carry out the work.

n The immediate task is to press hard for implementation of the select committee report on retentions - particularly the main recommendation that government departments should be given a target date of 2007 for retentions to be phased out in their procurement contracts.

The FMB and SEC Group added that they look forward to "future collaboration on this and other issues".