Should the government ban retentions in construction contracts?

The government has introduced the Commercial Payments Bill, which would ban retentions under construction contracts and cap payment terms at 60 days for large firms and 30 days for public bodies. Retentions are sums withheld to protect clients against defects. A Rider Levett Bucknall survey found 63 per cent of contractors expect to apply stricter criteria to SME subcontractors if the ban takes effect.