NSCC pushes on retentions

The NSCC’s Fair Payment Campaign has already resulted in a requirement for all payments on central government contracts to be paid within 30 days throughout the supply. As of last month, there is a common assessment or valuation date for all tiers of the supply chain on central government contracts and payment must be received down to tier 3 within 30 days of this date. An information note has been issued to all central government departments outlining the 30-day requirement.

In response to a request from business and enterprise minister Mark Prisk for feedback on how it is working in practice, NSCC has set up a confidential feedback service on the newly launched Fair Payment Campaign website at www.fairpaymentcampaign.co.uk.

NSCC said that after this success it will be focussing on the removal of retentions in 2011. Clients are increasingly recognising that retentions are an outdated practice, it says, and the new NSCC No Retention Policy recommends that Specialist Contractors do not accept cash retentions. The NSCC argues that the best guarantee of quality is a competent and qualified supply chain. It is encouraging the industry to resist cash retentions in favour of more modern and practical alternatives.

NSCC president David Jones said: “Changing custom and practice is never easy – particularly when the practice in question has been around for more than 100 years – but the Fair Payment Campaign shows that, by working together, we can make a difference. Government has clearly recognised the importance of fair payment and its decision to make 30 days a requirement gives us a huge opportunity to overhaul the industry’s payment practices once and for all.”

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