Construction SMEs Need Protection from Payment Abuse
Small and medium-sized enterprises (SMEs) in the construction sector are falling victim to payment abuse and deserve better protection, a leading trade association has warned.
In its submission to the Scottish Government’s Economy, Energy and Fair Work Committee, which is undertaking an inquiry into the construction sector, SELECT took the opportunity to make the case that reform of the payment system should include provisions to ensure that retention monies are protected in trust.
Retentions are monies withheld from contractors by clients to ensure that all work is completed properly. The money is meant to be paid back in full once work is finished and confirmed compliant with industry standards.