Consultation outcome

Retention payments in the construction industry

This consultation has concluded

Detail of outcome

The responses and wider stakeholder engagement that took place during the consultation period illustrate the breadth of views within the sector on the practice of cash retentions, given the nature and complexity of the construction supply chain and the range of possible policy solutions.

We will continue to work with the construction industry and its clients to achieve a consensus on how to resolve the problems associated with cash retentions.

Feedback received

Detail of feedback received

We received 55 responses from a range of stakeholders, including:

  • construction and civil engineering businesses
  • business representative organisations and trade bodies
  • legal representatives
  • individuals

The consultation also welcomed other comments and evidence. A further 24 submissions were received. These included formal submissions from trade associations and a number of responses from individuals.

Original consultation

Summary

A consultation on the practice of cash retention under construction contracts

This consultation ran from
to

Consultation description

The purpose of this consultation is to seek information on the practice of cash retention under construction contracts and gather views on the findings of the supporting documentation.

The consultation is relevant to any party to a commercial construction contract as defined by the construction contracts legislation. It is also relevant to adjudicators, arbitrators and lawyers. While this consultation concerns construction specific legislation it may also be relevant for those with an interest in prompt payment more generally and to insolvency practitioners. The legislation does not apply to residential occupiers.

The research report and consultation stage Impact Assessment are published alongside this consultation.

The consultation runs in parallel with one supporting the Post Implementation Review of the 2011 changes to Part 2 of the Housing Grants, Construction and Regeneration Act 1996.

Documents

Retention payments in the construction industry: a consultation on the practice of cash retention under construction contracts

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Consultation stage Impact Assessment

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Retention payments in the construction industry - a research paper prepared by Pye Tait Consulting on behalf of BEIS

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Published 24 October 2017
Last updated 26 February 2020 + show all updates
  1. Summary of responses published.

  2. First published.