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CFA CEO COMMENT

Richard Catt

CFA responds to landmark government consultation

on payments and retention

This summer’s government consultation on payment and retentions marked a rare opportunity to
tackle late payments, protect SMEs, and reform construction’s broken payment culture, says Richard

HIS summer saw what many are As one senior civil servant, Fergus
Tcalling the biggest opportunity for Harradence, put it this was a ‘once-in-
change in decades when it comes to a-generation chance’ to fix something
improving payment practices and tackling that’s been broken for far too long.
retentions in construction. Government’s To back up our response with real data,
Payment and Retention Consultation, we looked at figures from our 2025 CFA
which ran through the summer and annual return. Among 280 contractor
closed on 23 October 2025, set out a members, we found:
series of proposals aimed at fixing the • £24.3 million in outstanding invoices
long-standing issues of late payments more than 30 days overdue
and withheld retentions. • £16.2 million in overdue retention
At the CFA, we took this consultation payments
very seriously. Late payments and Those are eye-watering numbers, and
retentions are two of the most common, ‘We’re not asking they underline the scale of the problem.
and frustrating issues our members raise For many SMEs, that’s money already
with us, so we worked hard to make sure for special treatment, earned but still sitting in someone else’s
your voices were heard loud and clear. just to be paid fairly bank account. It’s not hard to see why
Our response wasn’t written in this issue has become such a priority.
isolation. We discussed the proposals and on time for Our position throughout the
internally and with the CFA council, work done’ consultation was clear and simple:
spoke directly with individual members, 1. Pay us in 30 days – not 60 or 45
and ran a short online survey to gather We also teamed up with Build UK, The Government suggested a 60-day
views across the industry. Members attending consultation meetings they maximum payment term, but we made it
were encouraged to send in their own organised and helping shape a unified clear that’s still too long. Subcontractors
responses too, to help show government message across the specialist contractor have to pay their own suppliers and
the scale of feeling on the ground. community. staff in 30 days (or less), so it’s only fair 

CFA, Unit 22, Eldon Business Park, Eldon Road, Chilwell, Nottingham NG9 6DZ 0115 941 1126 | info@cfa.org.uk | www.cfa.org.uk

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