Construction sector heavyweights back 'Aldous Bill'

Open-access content Thursday 15th March 2018 — updated 7.14pm, Tuesday 26th May 2020

15 March 2018 | Herpreet Kaur Grewal

Industry is uniting behind Peter Aldous MP's efforts to reform damaging payment practices and abuse in the construction industry.

In the wake of the Carillion collapse an industry coalition of more than 60 construction and maintenance trade bodies now backs the 'Aldous Bill', a private member's bill proposing that cash retentions owed to the supply chain be held in trust.

By far the largest industry coalition ever formed on the issue of late and unfair payment, it comes amid growing support and clear industry appetite for reform. There is also growing political support for the bill from in the Commons and the Lords.

Support covers a broad cross-section of the entire supply chain, including electrical, plumbing, heating, interiors, housebuilding, roofing, scaffolding and demolition. Major trade bodies in support include the Federation of Master Builders and the Federation of Small Businesses (see below for a complete list.)

ECA director of business Paul Reeve said: "Quite simply, the time for major change to retentions is now. Putting retentions in trust would help to protect the supply chain from future upstream insolvency, and it would reduce the amount held in retentions when buyers see that they can no longer use suppliers' cash to support their own business model."

BESA public affairs & policy manager Alexi Ozioro said: "Levels of support for the bill are very encouraging, and this is a real opportunity for government to show it can respond to urgent developments and legislate on more than just Brexit. It will take months, maybe years, to feel the full effect of Carillion, and what this bill will do is make sure thousands of people can enjoy a more secure future."

Peter Aldous has said: "This coalition of support shows the urgent need for reform and unity of industry following Carillion. Support covers so much of the industry that we now have a golden opportunity to change construction for the better. I hope government gets behind industry and this bill. We need action to protect SMEs before more millions are lost, and this bill is about ensuring people's money is safe so businesses can grow and invest in their future."

Awareness of the bill and support for Peter Aldous are being coordinated by the Building Engineering Services Association (BESA) and leading electrotechnical and engineering services body ECA. Carillion collapsing, six days after the bill's first reading, has pushed payment abuse high up the political agenda. The bill seeks to ensure that payment retentions are protected in special ring-fenced deposit schemes to minimise damage to the supply chain in the event of insolvencies.

The second reading of the bill is Friday 27 April.