Moved by
Lord Aberdare (CB)
39: After Clause 12, insert the following new Clause—
“Payment practices: protection of retention monies in the construction industry
(1) The Secretary of State shall arrange a review of the practice in the construction industry of withholding monies which would otherwise be due under a contract, the effect of which is to provide the paying party with security for the current and future performance by the party carrying out construction operations of any or all of the latter’s obligations under the contract (“retention monies”).
(2) The review shall make recommendations regarding—
(a) the maximum period of time for which retention monies can be withheld; and
(b) the most effective mechanism for protecting retention monies against the risk of the paying party becoming insolvent.
(3) The review shall be completed by the end of the period of 9 months beginning with the day on which this Act is passed.
(4) On completion of the review the Secretary of State shall lay a copy of the report of the review before each House of Parliament.
(5) Within the period of 18 months following completion of the review the Secretary of State shall by regulations implement the recommendations in the review.”