Fri 14 Jul 2023

The Commercial Payments Bill continues to progress through Parliament, with proposed reforms to retentions, payment terms and the powers of the Small Business Commissioner set to impact the Scottish construction industry.

The proposed Commercial Payments Bill would ban retention clauses in construction contracts, requiring employers and contractors to consider alternative forms of security. The article explores the potential impact of the ban, including increased costs, practical challenges and consequences for SMEs, while highlighting the need for better payment practices and quality assurance across the construction sector.