§ Mr. KeyTo ask the Secretary of State for Trade and Industry what steps she has taken to replace the construction industry retention system as regards central Government, agency and local authority contracts. [29802]
§ Mr. Andrew SmithI have been asked to reply.
I am aware of the concerns raised in the industry with regard to retentions, but it would be premature to seek to change the current arrangements.
The construction industry has yet to achieve 'zero-defects' or 'right first time' culture and continues to have difficulty ensuring quality. Contractors, sub-contractors and specialists in the industry, as well as government, have a role to play in ensuring that quality is a priority issue.
168WThe Achieving Excellence in Construction initiative, led by the Office of Government Commerce, is placing greater emphasis on team working and value for money procurement strategies and is encouraging central Government construction clients to use partnering and long-term commercial agreements with suppliers to reduce the need for retentions in the future.
The Local Government Task Force, which was formed to promote Sir John Egan's Construction Task Force report 'Rethinking Construction' in local government, is also encouraging authorities to work with suppliers to reduce the need for retentions.