Friday, December 15, 2023
HomeConstructionCouncils sitting on retention monies, say roofing contractors

Councils sitting on retention monies, say roofing contractors

NFRC chief executive James Talman
NFRC chief govt James Talman

A brand new survey by Glenigan for the Nationwide Federation of Roofing Contractors (NFRC) reveals that simply 14% of roofing contractors say they’ve a clean expertise gaining the retention monies that they’re owed on native authority initiatives. For 86% there are issues.

The most recent State of the Roofing Business survey requested roofing and cladding contractors about their experiences with money retentions, particularly when enterprise native authority works. 

Greater than half (51%) of respondents to the quarterly survey stated they took on native authority work. Of those, 76% stated that they all the time, normally, or typically had retentions held on them when enterprise these works.

Of that group, 86% stated they all the time, normally, or typically had hassle acquiring the retention monies they have been owed.

  • 17% stated they ‘all the time’ had hassle
  • 33% stated they ‘normally’ had hassle
  • 36% stated they ‘typically’ had hassle.

This info was collected to help NFRC’s marketing campaign in opposition to the abuse of retentions. 2021 analysis from NFRC that exposed £300m of money was being held in retentions within the roofing trade alone.

Related Information

Ongoing analysis from the commerce physique presently additionally signifies that roofing contractors are typically not seeing this historic follow fade out, regardless of trade efforts to encourage voluntary motion by shoppers to cease holding retentions.

78% of those that have responded to date to the broad-based 2023 Member Retentions survey say that they’re going through the identical degree or extra retention as final yr. Respondents known as coping with retentions ‘pointless’, ‘tortuous’, and even ‘psychologically damaging’.

NFRC chief govt James Talman stated: “At finest, retentions are a further burden on time-poor microbusinesses. At worst, they cut back subcontractors to working at a loss and typically even going through insolvency.

“Ending using money retentions would encourage enterprise funding in abilities and enlargement by bettering building SME cashflow, would unlock hours of wasted time chasing owed monies, and will cut back the variety of sub-contractor companies that resolve they only can not stick with it. This outdated follow has endured for lengthy sufficient: authorities, at each the nationwide and native degree, ought to set an instance to all UK shoppers to finish its use all through their mission provide chain.”

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