Plan to add retentions record to payment reporting law

The plan, which has just gone out to industry consultation, is being advanced to arm subcontractors and suppliers with information so they can decide who to trade with, negotiate fairer terms, and challenge late payment, according to Whitehall officials.

Detailed prosposals include reporting:

• the average number of days taken to make retention payments in the reporting period, after practical completion and end of contractual defects liability period;

• the percentage of retention payments made within the reporting period, which were paid in 30 days or fewer, between 31 and 60 days, and in 61 days or longer;

• the percentage of retention payments due within the reporting period which were not paid within the agreed payment period; and

• the average value of retention held per construction contract (% of contract value).

Among other broader amendments, there are plans to require a named director to sign off on payment performance.

This would improve on the present self-certification approach where a business submits reporting data, where there is no validation process, to identify whether the data submitted is an accurate reflection of payment practices.

The Government is also considering forcing firms to separately report on payment times on disputed invoices.

For full details on the consultation click here Reporting on Payment Practices and Performance Regulations.

Source