BPF comments on late payment consultation

Commenting on the late payment consultation, our Assistant Director of Policy Sam Bensted said:

“Retentions in construction projects are often the only practical mechanism to ensure the delivery of defect-free buildings. Given that buildings handed over at practical completion will often have numerous defects outstanding, we do not support the proposal to entirely prohibit the use of retention clauses in construction contracts.

"The British Property Federation would support an approach that reduces the use of retentions alongside a stronger emphasis on contractors delivering higher-quality, defect-free buildings. The complete abolition of retentions could also have an effect on investor appetite, as it will increase investment risk, and could disadvantage the smaller or one-off client who are often at the sharp end of poor contractor behaviour. Overall, the BPF supports a fair and transparent approach to payment, underpinned by system that encourages and prioritises the delivery of high-quality buildings".