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Whitehall not keeping data on 'retentions abuse'


The UK Government is not collecting data on the use of cash retentions in the public sector, it has emerged.
The hands-off approach to the divisive issue of retentions in the industry was highlighted in a series of written answers to parliamentary questions published this week. They also revealed that it offers no guidance on the topic to procuring bodies and has no plans to include it in its Construction Playbook, which sets out best practice for public contracts.
Construction commentator Rudi Klein said the answers show the government is doing nothing to curb “retentions abuse”.
Lord Martin Callanan, a junior minister at the Department for Business, Energy and Industrial Strategy, said on Tuesday that the government is working with the Construction Leadership Council “to identify a sustainable strategy on retentions”. ....

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Retentions: Minister grilled over government inaction


Peers questioned minister Lord Martin Callanan over the government’s lack of progress on retentions reform.
Lord Callanan, a junior minister at the Department for Business, Energy and Industrial Strategy whose remit includes corporate responsibility, said the government is still working with the Construction Leadership Council and others to try to reach a consensus on retentions.
His comments maintained the government’s neutral stance on the controversial topic, set out in February last year as it published the results of a public consultation on retentions reform. The consultation concluded three years ago, in January 2018.
In the House of Lords debate, crossbench hereditary peer Lord Aberdare, Alastair Bruce, noted that it is also three years since the collapse of Carillion, which resulted in “many small construction firms losing hundreds of millions of pounds in retentions”. He asked: “What are the government doing now to prevent small construction firms ....

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