Background
Fair and transparent payment practices are essential for a successful construction industry, but the practice of cash retentions is problematic for all parties in the supply chain.
That is why Build UK and its members support the industry ambition to move to zero retentions by no later than 2025. To achieve this, we are implementing a Roadmap to Zero Retentions with milestones to show that progress is being made.
Key Milestones Delivered
CLC Support
The Construction Leadership Council (CLC) has confirmed its support for the roadmap and encouraged firms within the industry and construction clients, in both the public and private sectors, to adopt the minimum standards.
Click here to view the CLC’s supporting statement
Public Sector Retention Policies
Build UK has collated the retention policies of major public sector clients to provide increased transparency. The information includes the cash retention percentage generally withheld and when the money should be released.
Minimum Standards on Retentions
Build UK has published minimum standards on retentions designed to reduce the existing challenges with their use. There is detailed drafting guidance for members to incorporate the minimum standards into both JCT and NEC forms of contract.
Government Consultation on Retentions
In 2018, Build UK, together with CECA and the CPA, responded to the Government’s consultation on cash retentions calling for a joint approach of Government legislation to abolish retention by no later than 2025, supported by an industry-led roadmap.