Public Procurement and Property

Retention in construction contracts – publishing requirements: CPN 1/2024

June 17, 2024 by Teigan Kelly No Comments | Category Construction, Construction Policy Notes, Procurement news

We have published a new Construction Policy Note (CPN) providing advice to public bodies of the new requirements for publishing information on their use of cash retention in construction contracts.

The new CPN follows on from published guidance on the use of cash retention in construction contracts in CPN 3/2022, which became effective on 20 February 2023.

The recent CPN implements a further two recommendations, agreed by Scottish Ministers, from the report of the short life working group on retentions.

Recommendations

Each public body in scope of these provisions is required to undertake the following actions:

• by 31 August 2024, publish a retention policy statement on its website and then review and where necessary revise it by each subsequent 31 August thereafter
• from 20 February 2025, publish a retention policy compliance statement on its website for every project, initially as soon as possible after practical completion, whose contract was awarded on or after 20 February 2023

These recommendations are for all public contracting authorities that procure construction projects, whether occasionally or frequently. It is applicable guidance under the Scottish Public Finance Manual.

You can find further information, including templates to populate statements here: Retention in construction contracts – publishing requirements: CPN 1/2024 – gov.scot (www.gov.scot)

For further information on public procurement in Scotland please visit www.gov.scot/procurement

Please email enquiries to scottishprocurement@gov.scot

Follow us online:

Tags: Construction, Construction policy note, public sector procurement

Comments