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Construction: Billing

Question for Cabinet Office

UIN HL14673, tabled on 12 April 2021

To ask Her Majesty's Government what plans they have to add any guidance on retentions to the Construction Playbook when it is next reviewed.

Answered on

26 April 2021

The Construction Playbook, published in December 2020, includes 14 key policy reforms which will help government and industry work better together to deliver quality public works and value for money. It applies to all central government departments and their ALBs on a ‘comply or explain’ basis and we have strengthened approvals processes, including Cabinet Office controls for projects over £10m total value and the Treasury approvals process, to ensure compliance.

We recognise that this will be a journey and adoption will be demonstrated through ‘faster, better, greener’ public works achieved by a greater proportion of projects applying the Playbook over time and support will be provided to departments and ALBs to embed the Construction Playbook into their public works projects and programmes.

We are committed to annually reviewing the content of the Construction Playbook including working to facilitate prompt, fair and effective payment practices throughout the supply chain. The use of Project Bank Accounts is required unless there are compelling reasons not to do so and the Prompt Payment Measure allows contracting authorities to exclude suppliers on the basis of poor payment performance. At this time we do not have any plans to provide additional guidance on cash retentions specifically.

Answered by

Cabinet Office