Further to our e-update on New Legal Rules for Retention in the Construction Sector, the Second Reading of the Aldous Bill [The Construction (Retention Deposit Schemes) Bill] which seeks to outlaw retentions unless deposited in the hands of an independent third party, has been pushed back yet again from 26 October 2018 to 23 November 2018.
While the Bill is supported by over 80 construction industry organisations and, it is believed, around 200 MPs at Westminster, certain interests remain opposed to the Bill. The delayed Second Reading may reflect a need for more time to try to reach as wide a consensus as possible on the proposed new law. That said, in light of the Carillion collapse when hundreds of millions of pounds of retention monies were lost throughout the extensive Carillion supply chain, some might ask the question – what will it take for some action to be taken to protect retention monies?
The Bill is unlikely to make its way into law without support from the UK government and lack of parliamentary time due to Brexit may also be having an effect.
We’ll keep you updated with any developments.