Network Rail has this week announced that it will be banning all retentions. A move which is intended to protect sub-contractors in tier 2 of the supply chain. The overhaul means now that contractors must use project bank accounts and payments must be made to suppliers within 28 days of works being carried out.
We’re all well aware of the massive impact the collapse of large contractors has had on all levels of the supply chain. The fallout from Carillion is still biting hard and cashflows at all levels have been strained. With Network Rail hoping their new approach can relieve the pressure on the system.
While the moves made by Network Rail are great for subcontractors working within the supply chain of Network Rail, they have not been rolled out across the entire industry. Meanwhile the UK’s construction industry as a whole continues to struggle with late payments and cashflow issues amongst small businesses.
What can those businesses not working under the network rail umbrella do to get their cashflow back on track?
- Make sure you keep your retentions under review.
- Don’t be afraid to pursue unpaid retentions for fear of upsetting an ongoing relationship. The money is rightly due to you.
- Ask CRS for professional advice on any retentions you have. We can review and pursue retentions indefinitely on your behalf.
If your cashflow is being squeezed by overdue retentions and any of the above points apply to you. Don’t hesitate to get in touch with us. Our construction payment specialists and onsite Quantity Surveyors will help you collect any outstanding invoices, retentions or applications and aid in resolving any disputes.
Call CRS today to speak with a specialist 0114 236 1884