The IUA’s Director of Claims, Joe Shaw said:
“We welcome the Government’s commitment to work with stakeholders, including Surety firms, to ensure that the proposal to remove retention payments is properly consulted on before implementation.
“We acknowledge that Surety products will have a significant role to play should this proposal be taken forward, which is why our members have been considering this issue since it was first raised as a potential solution, having already provided preliminary views to Government departments. Our Committee has a number of active workstreams, including the planned publication of updated model wordings, which will help us better support clients and the wider construction industry.
“Surety bonds remain widely available in the UK and as the Surety industry is a highly regulated, respected and reliable market, it is no surprise that it is seen as central to these plans.
The importance of preventing the misuse of cash retentions without reducing build quality is clear, and the IUA looks forward to engaging in discussions to be held with stakeholders shortly.
“It is also worth highlighting that the Surety sector remains extremely well capitalised and has never had so many active providers in the UK, some of whom have been continuously providing market support, and wider value to the economy, for many decades. It is a highly specialist area that is a regulated by the FCA and PRA, which buyers should take into account when considering the support they need.”
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