About Us Expertise People News & Insight Events Careers Contact a d c Home Blogs The return of the debate on retentions Share Print Blog - 01/11/2021 Construction & Engineering The return of the debate on retentions When it comes to retentions, it appears a few more ‘tries’ need to be added to the old saying “if at first you don’t succeed, try, try again”. Readers may recall the various attempts by the Government over the past few years to address the issue of retentions (see our previous blogs: November 2017, January 2018 and October 2019). Now, a new Private Members’ Bill has been introduced in the House of Lords by Lord Aberdare which makes provision for the complete abolition of retentions within construction contracts. On 25 October 2021, the Construction (Retentions Abolition) Bill 2021-22 had its first reading. Through amendments to the Housing Grants, Construction and Regeneration Act 1996, the Bill proposes that any retention clause within a construction contract entered into after the passing of the Bill would have no effect. Additionally, any retentions withheld must be paid in full not later than seven (7) working days after the date on which they were due but withheld. The draft Bill stipulates that the new Construction (Retentions Abolition) Act would come into force on 1 January 2025. The new Bill is quite a departure from the previous Construction (Retention Deposit Schemes) Bill introduced in early 2018 by MP Peter Aldous which proposed a deposit scheme for retentions. With a second reading of the Construction (Retentions Abolition) Bill yet to be scheduled, it will be extremely interesting to see how the industry reacts to the potential of a complete abolition of retentions. If you have any questions regarding this topic, please contact Brenna Baye, or any other member of our Construction & Engineering team. If you aren’t receiving our legal updates directly to your mailbox, please sign up now Please note that this blog is provided for general information only. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content of this blog. Edwin Coe LLP is a Limited Liability Partnership, registered in England & Wales (No.OC326366). The Firm is authorised and regulated by the Solicitors Regulation Authority. A list of members of the LLP is available for inspection at our registered office address: 2 Stone Buildings, Lincoln’s Inn, London, WC2A 3TH. “Partner” denotes a member of the LLP or an employee or consultant with the equivalent standing. Please also see a copy of our terms of use here in respect of our website which apply also to all of our blogs. Brenna Baye Partner Construction & Engineering Construction & Engineering At Edwin Coe, our Construction team offers both contentious ... Latest Blogs See All Blog - 02/12/2021 Building Safety Bill – Gateway Overview Construction & Engineering Blog - 30/11/2021 LIBOR Transition: 1 month to go – what you have... Banking & Finance Blog - 16/11/2021 Domestic surveillance cameras – the good, the b... Intellectual Property Blog - 10/11/2021 Lloyd v Google LLC: The Supreme Court has closed ... Class Action Litigation 2 Stone Buildings, Lincoln’s Inn, London WC2A 3TH Sat Nav: WC2A 3TL DX 191 LDE Tel: +44 (0)20 7691 4000 Fax: +44(0)20 7691 4111 Email: enquiries@edwincoe.com Sitemap Terms of use Privacy and Cookies Pricing information Scam alert warning Modern Slavery Statement Receive legal updates