Government supports release of cash retentions and Project Bank Accounts
The Government confirms that it has given public sector bodies the ability to release all or part of cash retentions. It is also encouraging the use of Project Bank Accounts to accelerate payment to all firms within the supply chain.
Alok Sharma, Secretary of State for Business, Energy & Industrial Strategy, has responded to the Construction Leadership Council’s recent letter to the Prime Minister and addressed the burning issue of public sector clients not releasing cash retentions.
Public authorities are also receiving guidance on PPN 02/20, confirms Mr Sharma. Giving those that hold retentions the ability to release all or part of these monies in relation to projects. As well as, promoting the use of Project Bank Accounts to accelerate payment to firms within the supply chain.
In his letter to Andy Mitchell, the co-chair of the CLC, Mr Sharma said that the Government had taken action to ensure it is behaving as a responsible client towards the industry: “We have issued guidance to public sector procurers with regard to providing relief to suppliers through more flexible payments and contract terms.”
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