Construction retentions are crucial for the financial stability of our entire sector.
It costs more to administer a retention on small contracts than it generates in leverage. For larger projects, the livelihoods of entire supply chains depend on these retentions being paid - we shouldn't be gambling with what, in an era of such slim margins, amounts to all of (or more than) the actual profit on the job.
The pledge is free to support - simply visit our website (link in comments below) and sign up for free - submit your company information and we'll add you to the directory of supporters.
#WIOPI#construction#retentions#FairPayment#RetentionDepositScheme#sustainability#RetentionProtectionPledge#ConstructionRetentions
Yosof Ewing has made the compelling case for the protection of retentions and (at the time of posting) 97% of those polled agreed that retentions should be protected. Show your support by joining the (free) pledge and adding the badge to your website, invoices and email footers. Together, we are stronger 💪
#retentionprotectionpledge#retentiondepositscheme
I get specialist contractors paid and get them the respect they deserve from main contractors ✅ Dispute resolution & Contract Coaching ✅ DM me today and change everything!
🏗️ THIRD TIME LUCKY: DAILY POLLS ON CONSTRUCTION REFORMS 🗳️
Welcome to day five of our "Third Time Lucky" series 📊!
Today, we’re addressing a practice that continues to hurt specialist contractors: Retention Practices.
Third Time Lucky #5: Retention involves withholding a portion of payment to ensure work is completed and defects are fixed. But here’s the problem:
❌ Many main contractors use retentions as working capital, rather than protecting the funds for their intended purpose.
❌ If the main contractor goes bust—like ISG and others in recent years—the retention funds are often lost entirely.
❌This practice disproportionately impacts smaller businesses, creating cash flow challenges and unnecessary financial risk.
Proposed Solution:
Let’s adopt a ring-fencing approach, as seen in Australia, where retention funds are held in separate trust accounts. This ensures that:
✅ Retention monies are safeguarded and can’t be misused as working capital.
✅ Funds remain available for release upon project completion or defect resolution.
✅ Contractors are better protected if the main contractor becomes insolvent.
Ring-fencing promotes fairness, transparency, and financial security—values every contractor deserves.
For more on Australia’s ring-fencing policies, see this guide to trust accounts in their construction industry (link in comments).
🗳️ Vote now, and share your thoughts in the comments 💬! Have retention practices impacted your business? Let’s discuss how we can bring fairness and security to the industry together.
I know it's Saturday, but that shouldn't stop us campaigning!! 😉
Let’s shape the future of construction together. 💪
Please also share this so we can get a real idea of peoples thoughts out there.
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NB: these polls are set to run for seven days from date of publication and I will share their findings once all done, thank you 🙏
This is so reassuring to see - the Standard Form contracts almost all require retention to be protected in a separate bank account and that is usually the first item to be struck out...
This is a massive statement from the Construction Leadership Council - we have to stop this routine amendment of Standard Form Contracts.
The statement echoes the long held concerns of the Finishes and Interiors Sector Community and I would like to personally thank Samantha Peat FIoD CDir FCII, Chris Pateman and colleagues in this Working Group for the amount of time that has gone in to establishing the forum and drawing the right people together to have the open and pragmatic discussion with the insurance industry that has resulted in this clear and unambiguous statement.
We have a legislative process that focusses on duty and a contractual process that focusses on passing the buck - this is bound to create tension. Boundaries need to be reset or we are left with impossible problems, uninsured elements and ultimately the potential for stranded assets and uninsured buildings.
This is Leadership and we applaud the Construction Leadership Council and supporting representatives from the Insurance Sector for taking a strong line. The statement in itself will not change the world, but what we do with it can. For me the clear message here empowers the Responsible No by starting to spotlight the Irresponsible Ask. Contract amends are at the heart of the cultural concerns in construction - change is inevitable and has I believe been catalysed today"
🚨 New Legislation Alert 🚨
Construction companies will need to confirm if/how they use retentions and how much they hold...
The Reporting on Payment Practices and Performance (Amendment) (No. 2) Regulations 2024 requires large construction companies (exceeding two or more of >£36m turnover, £18m balance sheet or 250 employees) to report on the retentions they hold, what their process/formula for doing so is, and whether the retention they hold from their downstream supply chain exceeds that withheld by their upstream employers.
Link to the text in the comments.
#construction#retentions#constructionretentions#retentionreform
New Supporter: Locker & Riley
By committing to this pledge, they aim to promote fairness, transparency, and financial security for their supply chain partners. They believe in waiving retentions for contracts up to £100,000 and safeguarding retentions for larger contracts through independent escrow accounts or retention deposit schemes.
Join us in supporting a more sustainable and collaborative construction industry.
Read more about our commitment and how you can get involved.
#construction#FairPayment#sustainability#RetentionProtectionPledge#retentions#ConstructionRetentions
New Supporter: Ideaworks
By committing to this pledge, they aim to promote fairness, transparency, and financial security for their supply chain partners. They believe in waiving retentions for contracts up to £100,000 and safeguarding retentions for larger contracts through independent escrow accounts or retention deposit schemes.
Join us in supporting a more sustainable and collaborative construction industry.
Read more about our commitment and how you can get involved.
#construction#FairPayment#sustainability#RetentionProtectionPledge#retentions#ConstructionRetentions
New Supporter: Technic Concrete Floors Ltd
By committing to this pledge, they aim to promote fairness, transparency, and financial security for their supply chain partners. They believe in waiving retentions for contracts up to £100,000 and safeguarding retentions for larger contracts through independent escrow accounts or retention deposit schemes.
Join us in supporting a more sustainable and collaborative construction industry.
Read more about our commitment and how you can get involved.
#construction#FairPayment#sustainability#RetentionProtectionPledge#retentions#ConstructionRetentions
New Supporter: LANSERRING
By committing to this pledge, they aim to promote fairness, transparency, and financial security for their supply chain partners. They believe in waiving retentions for contracts up to £100,000 and safeguarding retentions for larger contracts through independent escrow accounts or retention deposit schemes.
Join us in supporting a more sustainable and collaborative construction industry.
Read more about our commitment and how you can get involved.
#construction#FairPayment#sustainability#RetentionProtectionPledge#retentions#ConstructionRetentions
