Government could set up a Task Force on cutting retentions following meetings with the Specialist Engineering Contractors' Group early in January.
The SEC Group and Claire Curtis- Thomas MP met with Paul Boateng, Treasury chief secretary. They discussed the issue of retentions, and the related problems of security of payment.

Bill Jenkins, of WT Jenkins and a member of the Electrical Contractors' Association highlighted the problems for small companies caused by retentions. One example was the Ballast case where there were substantial debts owing to sub-contractors, of which £14.9 million were retentions.

Government has set itself the target of phasing out retentions in government procurement, and achieving defect-free construction by 2005. Boateng undertook to consult ministerial colleagues in the DTi and ODPM on an appropriate mechanism for taking matters forward.

Source

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