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CFA CEO COMMENT

CFA responds to landmark government consultation on payments and retention

that they’re paid in the same timeframe. chain. For too long, SMEs have carried our research:
Anything longer just shifts risk and disproportionate financial risk while ‘We’re not asking for special
cashflow pain down the supply chain. On having the least control over payment treatment, just to be paid fairly and on
this we were slightly at odds with Build terms. time for the work we’ve already done.’
UK and their unified position that includes Across the consultation’s proposed It’s a simple message, but it cuts to
the voice of main contractors of course. measures, we were broadly supportive, the heart of the issue.
2. Time to scrap retentions so long as they deliver real, practical Now that the consultation has closed,
We’ve said it before, and we’ll keep change. We backed: government will review all submissions
saying it: retentions are outdated. • Automatic statutory interest on late before publishing its conclusions and
They often aren’t returned, they make payments, removing the burden from next steps. The CFA will stay closely
no difference to whether a contractor SMEs to ‘ask’ for it. involved in those discussions, pressing
returns to fix an issue, and they leave • A 30-day deadline for invoice disputes, for measures that actually improve
SMEs carrying all the risk. We called for to stop companies using ‘disputes’ as a cashflow and fairness across the supply
the complete abolition of retentions, and delaying tactic. chain. We’ll continue to argue that fair
if that can’t happen immediately, then • Penalties for spurious complaints payment means 30 days, no retentions,
at the very least, retention funds should relating to work successfully and real penalties for those who don’t
be protected in segregated accounts, so completed. play by the rules.
they can’t vanish as additional profit or • Financial penalties for persistent Whatever happens next, members can
working capital for a main contractor. late payers, linked directly to unpaid be confident that CFA has been fighting
Otherwise, they should only ever be interest. their corner throughout this process
available should a floor fail, or the • Transparency around how much and will keep doing so until meaningful
specialist ceases trading. interest is owed and paid, to highlight change is delivered.
3. Less red tape, more enforcement poor payment behaviour. As this my last of article for 2025, on
Everyone knows what good payment We also made the point that any behalf of all the CFA Council and the
behaviour looks like. What’s missing new powers for the small business wider CFA team, I would just like to take
are consequences when companies commissioner must extend to this opportunity to wish everyone a very
don’t follow the rules. We said the focus construction, otherwise one of the Merry Christmas and a healthy, peaceful
should be on penalties and enforcement, worst-affected sectors will be left out of and prosperous new year.
not more box-ticking or reporting the solution. For more information on CFA
requirements that add bureaucracy Pulling together this response was membership, and how we support
without changing behaviour. a real team effort, within CFA, across our members through government
4. Think specialist, not just main our council, and in partnership with consultation, and within the wider
contractor members and Build UK. Our goal was construction industry, please contact us. 
We reminded policymakers that reforms to make sure the flooring industry’s 0115 941 1126
must work for specialist contractors, perspective was front and centre. info@cfa.org.uk
not just the big players at the top of the As one member summed it up during www.cfa.org.uk

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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46 CFJ December 2025 www.contractflooringjournal.co.uk
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