The Department for Business and Trade (DBT) has confirmed that the draft legislation to amend the Reporting on Payment Practices and Performance Regulations to introduce new metrics on retentions has been withdrawn.

This is as a result of the General Election, which means there is now insufficient time for the legislation to be completed before the intended commencement date of 1 October 2024, and DBT is working with the new Ministers to confirm a revised date.

New metrics on the value of invoices paid and disputed invoices will still come into force as planned from 1 January 2025.  In Scotland, Scottish Government have issued a new Construction Policy Note (CPN) on retentions that look at tightening requirements of reporting retention policy, but does not put any onus on recording levels of retention held.

Commenting on this delay, FIS CEO Iain McIlwee stated:

“This is disappointing as a huge amount of work went into getting this reform laid down and to be thwarted at the 11th hour by a snap election and drawn out parliamentary process is frustrating.  That said, to our mind more could be done and we will be bringing our recommendations about automatic release linked to prescribed dates and liability limited to scope of works to the new Construction Minister at the earliest opportunity”.

The FIS has laid down a number of recommendations to reform retention in our Blueprint for Better Construction here