Cash retention – the withholding of a percentage of payment on construction work until it is completed free of defects – is intended to provide security to the industry’s clients that any defects will be rectified appropriately. However, retentions are problematic for all parties in the supply chain and generally do not provide an appropriate or proportionate mechanism for ensuring quality and fair payment.
The Construction Supply Chain Payment Charter, introduced by the Construction Leadership Council, sets out an ambition to move to zero retention by 2025.
To deliver zero cash retention within construction.
To develop and implement an industry-led roadmap to phase out the use of cash retentions in construction by 2023.
Build UK response to Government consultation on retentions
Build UK member consultation on roadmap to zero cash retentions
Task Group established to explore alternatives to cash retention
Meeting hosted by Minister for Business and Industry Richard Harrington MP to discuss retentions
Build UK to publish minimum standards on retention
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How to get involved
To input to this project please contact info@BuildUK.org