The Construction (Retentions Abolition) Bill 2021-22 (the retentions abolition bill) is the latest in a string of attempts by MPs to legislate change surrounding the practice of cash retention in England and Wales. Introduced by Lord Aberdare on 25 October 2021, it now awaits its second reading before parliament.

The inclusion of terms within construction contracts that entitle an employer to withhold a percentage of payment for completed works until the whole of the works (including the making good of any known defects) are complete has long been considered standard practice in the industry, with standard form suites of contracts accommodating its use. However, it has become the subject of much scrutiny in recent years due to the cash flow difficulties it can cause across whole supply chains.

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