Retentions in UK Construction

Retentions – holding back a proportion of monies owed until a job has been completed to the satisfaction of the buyer – is a long established contractual practice in the construction sector. However there is very limited evidence on the impact of retentions, and on alternatives to this approach.

Pye Tait has recently been commissioned to undertake an evaluation of the current practice of retentions, its costs, benefits and impacts for the sector, and the costs and benefits of alternative practices.

Using a combination of expert input, desk-based research and qualitative and quantitative feedback from the sector, we will be looking at all parties to construction contracts – from the client, whose interests the retention is ultimately there to protect, through to specialist contractors in the supply chain.

Central Government Client

2 thoughts on “Retentions in UK Construction

  1. Kathryn Taylor

    We would be very happy to give our views on this subject to your researchers. Retentions are very difficult for us to manage, on both sides of our ledger, and the terms of the amended Construction Act do not seem to apply to many of the contracts that we have been given since it’s introduction.


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