NFRC’s Full Response to ‘Late payment consultation: tackling poor payment practices’

On 30 July, the Department for Business and Trade launched a consultation on late payment and retentions. Their stated goal was to seek “views on legislative measures which address late, long and disputed business-to-business payments, and the use of retention clauses in construction contracts.”  

Over the following three months, NFRC discussed the proposed measures with Members. In preparing our response, NFRC participated in a roundtable with DBT officials, major contractors, and specialist trade bodies hosted by Build UK. We also hosted a webinar for Members where DBT officials presented the consultation’s key proposals; this session was recorded and made available to all Members, with further feedback sought and implemented. These engagements, along with feedback gathered at in-person regional events and committee meetings (in all the devolved nations), shaped NFRC’s position as an accurate reflection of our Members’ views. During this time, NFRC also authored numerous thought pieces on the topic of retentions in roofing and cladding trade press outlets such as Roofing Today and Total Contractor. Throughout all engagements, we also encouraged and supported Members to respond in their own right. 

NFRC has long advocated for reform to payment practices and retention clauses, providing additional opportunity for consultation and collation of Members perspectives on these issues. In 2023, we hosted a parliamentary reception on retentions, giving our Members the opportunity to engage directly with government and industry stakeholders. We have also carried out our own research into the issue: in 2021, we surveyed Members and estimated that £300 million of roofing and cladding subcontractors’ cash was held in retention at any one time. In 2023, 86% of Members surveyed reported difficulties recovering retention payments on local authority contracts. In 2025, 80% of responding contractor Members reported that retentions affect their business, with 19% reporting a significant impact, 36% a moderate impact, and 25% a minor impact. Through our quarterly State of the Roofing Industry surveys, we continue to gather regular data on payment terms, enabling us to track trends and sentiment across our sector. 

DBT states, “The consultation outcome will be published within 12 weeks of the close of the consultation, or an explanation will be published if this is not possible.” 

In the meantime, Members are welcome to read NFRC’s full response here.