In today’s construction news, read about significant revisions to construction retentions being the subject of a consultation by the Department of Business and Trade. Meanwhile, on Friday, September 19th, the newly constructed Masters Suite at The Belfry played host to the inaugural Midlands Construction Charity Event. Tippers, EH Smith Builders Merchants, Friel Construction, and M Lambe Construction, four prominent independent enterprises from the Midlands, came together for the occasion. Finally, the construction industry plays a crucial role in national development, utilising both current resources and anticipating new innovations and technologies to aid in housing, infrastructure, energy, and jobs.
Revamping Construction Retention Policies
Original Source: Construction Retentions Reform: The UK Retention Deposit Scheme
The Department for Business & Trade is consulting on important construction retention adjustments. The consultation ends 23 October 2025. The DBT wants to hear from all construction professionals and ancillary support functions regarding this once-in-a-generation chance to ensure fair treatment for contractors and subcontractors.
Here you can share your retention reform opinions.
The government’s consultation on late payments in construction is welcome for a sector plagued with retention abuse. Retention clauses have protected companies against latent faults and incomplete work for decades. However, withholding (and frequently never returning) these monies has become a systemic risk for contractors, particularly SMEs.
Reform is overdue and necessary. However, only one approach provides justice and functionality without adding complexity or cost. The UK Retention Deposit Scheme (‘UKRDS’) is regulated and effective. The UK Retention Deposit Scheme is the best option for achieving justice and functionality.
Systemic weakness: retention abuse
Retention payments in UK construction contracts total £4.5 billion annually. Employers now use this money as operating capital or negotiating chips after a project, originally meant to assure post-completion performance. Late payments, nonpayment, and insolvency resulted.
More than 70% of contractors have had retentions delayed or withdrawn, according to government statistics. Alarmingly, 44% have lost retentions owing to supplier chain insolvency. Such losses can be fatal for tiny, margin-constrained enterprises.
Protective vs. prohibition
Some want to ban retentions altogether. This is appealing: remove the mechanism, eliminate abuse. Construction isn’t exact. Employers require assurances that defects will be fixed.
Prohibition would certainly hide the issue. Employers could undervalue interim payments or delay certification, mimicking a retention’s financial impact without transparency. It would be tougher to detect and monitor these activities, putting contractors and subcontractors at risk they cannot afford.
The focus should be on protecting retention funds by making them visible, ringfenced, and used as intended. This is where the UK Retention Deposit Scheme excels.
UKRDS: Safe, regulated, ready
Since January 2025, the UK Retention Deposit Scheme has provided policymakers, employers, and contractors with the right solution. UKRDS combines financial protection, regulatory compliance, and administrative ease to meet DBT consultation principles.
The scheme is:
The FCA regulates UKRDS, which is run by a registered payment institution with capital, wind-down, and safeguarding criteria.
All monies are held in liquid, unencumbered form by central bank-accessible banking partners.
Project-specific: To simplify audits, certification, and reconciliation, each contract has its own sort code and account number.
Integration with adjudication: Funds can be issued on certification or adjudicator decision, upholding the “pay now, argue later” approach.
Cost-effective: The scheme is free while the Bank of England base rate is above 3.75% and costs £20 per contract each month otherwise.
Some features go beyond tick boxes. They change the game, restoring trust in contracts and empowering construction SMEs to invest, deliver, and thrive.
Balanced legislation
UKRDS promotes blended reform under the Retention Protection Pledge. It supports government moves to ban retentions on smaller contracts (under £100,000), when the withheld payments give little protection but pressure small enterprises. UKRDS advises against retentions in larger contracts unless stored in a protected third-party account.
This balances well. Employers have the ability to withhold funds due to flaws, while contractors remain protected from exploitation and insolvency. It improves supply chain quality, liquidity, and dispute resolution.
Policy to practise
Legislation without infrastructure delays. The infrastructure is already here. In live construction, the UKRDS model was tested, regulated, and refined. It works.
The scheme is scalable for large and small projects and easy to integrate into contract management processes. A secure interface lets funders, contract administrators, and clients view deposits, balances, and release requests in real time.
This isn’t theory. Working practice.
Call to government, industry
A whole new regulatory structure is not needed for building. It need not risk untested alternatives. The UK Retention Deposit Scheme is the proper solution today.
The government should adopt a legislative approach that demands protection rather than prohibition and it should recognise UKRDS as a delivery vehicle capable of achieving that reform. We invite contractors, developers, and funders to directly interact with the scheme and discover how retention can benefit everyone.
Midlands Construction Community Raises £167,000 for Local Charities at the Belfry
Original Source: Midlands Construction Community Unites to Raise £167,000 for Local Charities at The Belfry
Tippers, EH Smith Builders Merchants, Friel Construction, and M Lambe Construction hosted the first Midlands Construction Charity Event at the newly completed Masters Suite at The Belfry on Friday, September 19.
The evening celebrated the family-owned, independent construction firms that underpin the region’s economy with over 300 attendees. Groundworkers, developers, commercial contractors, and suppliers attended, showcasing the diversity of the construction community in the Midlands.
The gathering celebrated teamwork, community spirit, and the daily effort that keeps the sector alive.
The generous event raised £167,000. This generous amount will be split between four Midlands charities: Acorns Children’s Hospice, St Giles Hospice, Tabor Living, and the Christy Lambe Foundation, all chosen for their invaluable contributions.
Joe Tipper, coordinating company spokesperson, said:
“This event showed what can be achieved when independent businesses work together, not just celebrating construction. Our industry’s generosity and community’s strength allowed us to raise £167,000 in our first year.”
This inaugural event demonstrated the resiliency and value of Midlands independent construction enterprises and set a pattern for future industry pride and charitable giving activities.
The evening’s hosts thanked headline sponsors FP McCann, Keystone, Ibstock, and Holcim and additional sponsors Wrekin, Brett Martin, BS Eaton, Hitachi, British Gypsum, Ideal Standard, MGF, Bristan, and JCB.
UK Construction is Crucial to Government Economic Ambitions
Original Source: How important is the UK construction industry to government plans for growth?
Construction and the built environment are key to the UK government’s economic ambitions. Construction Alliance North East chair Tim Barrett elaborates.
From housing and infrastructure to energy and jobs, the construction industry drives national development, harnessing its resources and looking ahead to new innovation and technology.
Growth foundation for UK
The Prime Minister’s office has stated that rebuilding the UK needed bricks, steel, and trained labour, not just policy promises.
Building 1.5m houses by the end of this Parliament is the government’s major housing goal and a growth plan. With approximately £600m in training investments, this plan aims to solve the UK’s housing crisis and boost local economies. The question remains whether the investment is sufficient and the policy feasible.
The construction industry goes beyond dwellings. The government’s goal to modernise the UK and enhance productivity depends on infrastructure investments, including roads, trains, and electricity.
Lack of skills and workforce development
Despite driving economic growth, the construction industry faces a major problem.
The Office for National Statistics reports over 35,000 vacant construction jobs, with more than half due to skill shortages, the highest rate of any UK industry.
The government has established several workforce development efforts to address this:
Technology Excellence: Colleges and foundation apprenticeships to attract youth.
The government has also established skills bootcamps to facilitate retraining and industry entry.
Rewards for experienced builders to teach newcomers.
These initiatives address immediate needs and build a talent pipeline. Build a workforce that can build Britain’s infrastructure. New technologies and construction methods only partially mitigate the largest danger to the sector.
Plan reform and regulation changes
Bureaucratic constraints have historically slowed construction growth. The government has overhauled the planning system to speed up approvals and reduce delays. This reform unlocks stuck projects and accelerates development schedules, helping the UK reach its housing and infrastructure ambitions.
Changes in regulations complicate matters. The new Building Safety Act, Biodiversity Net Gain, and Building Safety Levy regulations are causing industry headaches. These standards improve quality and sustainability but increase compliance costs for developers, contractors, and the sector.
Public spending and investment
Public investment is another pillar of the government’s growth strategy. To meet demand, the £39 billion Affordable Homes Program invests in social and affordable homes. This helps vulnerable communities, produces jobs, and boosts local economies.
Infrastructure spending will rise beyond housing. Transport, energy, and green technology projects will create thousands of jobs and expand building markets. The government declares that construction investment is in Britain’s future.
Innovation and sustainability
Grow today to sustain tomorrow. Construction is expected to lead to greener practices. Low-carbon materials and energy-efficient buildings require innovation.
Government assistance for green infrastructure, including retrofitting homes, creating renewable energy facilities, and enhancing public transport, places construction as an environmental leader. Digital transformation, including BIM and smart construction, improves the sector’s efficiency and sustainability.
Challenges ahead
Even with government support, the building industry faces unknown headwinds:
Rising material costs and supply chain interruptions strain budgets.
Local opposition and land availability might hinder projects.
Environmental goals need new skills and technologies, complicating
Some industry experts doubt the 1.5m houses objective is achievable. The desire is admirable, but planning authorities, developers, and communities must work together.
A strategic collaboration
Government and construction work together. The government sets policy, funds, and reforms; the industry produces results. This relationship is crucial to the UK’s economic revival, social equality, and environmental resilience.
The Construction Industry Council asserts that the quality, affordability, and sustainability of the government’s built environment will evaluate its legacy, not its numerical achievements.
The UK construction industry is essential to government growth ambitions. Construction underpins national development, from housing and infrastructure to jobs and sustainability.
The sector can develop structures for a stronger, fairer, and more prosperous Britain via smart investment, regulatory reform, and workforce expansion. The government must understand that larger investments yield higher returns for the UK.
Summary of today’s construction news
In summary, a whole new set of rules is unnecessary for the construction industry to wait. It also doesn’t have to take a chance on unproven options. Not only is the UK Retention Deposit Scheme operational, but it is also the best course of action.
Meanwhile, the initial event’s success demonstrated the resiliency and significance of Midlands-based independent construction enterprises and established a solid foundation for future endeavours that combine industry pride with philanthropic giving. To make the evening possible, the organisers would like to give a special thank you to the headline sponsors—FP McCann, Keystone, Ibstock, and Holcim—as well as the additional sponsors— Wrekin, Brett Martin, BS Eaton, Hitachi, British Gypsum, Ideal Standard, MGF, Bristan, and JCB.
Finally, the growth goals of the UK government rely heavily on the building industry. Building is fundamental to national development in many ways, including housing, infrastructure, employment, and sustainability. Building not only structures but also a stronger, more equitable, and richer Britain is within reach if the industry receives strategic investment, reforms its regulations, and increases its workforce. But the government needs to see this, too, and understand that the greater the investment, the greater the benefit to the UK.