The Retention Ban: Is It Good? Or Is It A Case Of Be Careful What You Wish For?
About this episode
Jacob Austin discusses the implications of the UK government's ban on retention payments in construction contracts.
In episode 136 of The Subcontractors Blueprint, Jacob Austin of QS.Zone unpacks the UK government’s landmark decision to ban retention payments in construction contracts. He explains the background, the new payment reforms, and what these changes mean for subcontractors’ cash flow and contract negotiations. Jacob highlights potential risks, such as main contractors restructuring payment schedules or increasing quality disputes, and offers practical advice on record-keeping, contract review, and preparing for increased use of retention bonds. The episode equips construction business owners with strategies to adapt and thrive in this evolving regulatory landscape. KEY TAKEAWAYS: The UK government has announced a ban on retention payments in construction contracts, marking a major shift for the industry. New legislation will also cap payment terms at 60 days, mandate statutory interest on late payments, and empower the Small Business Commissioner to fine persistent offenders. Specialist contractor trade bodies have welcomed the changes, while some client groups warn of potential quality risks. Main contractors may adapt by backloading payment schedules and tightening quality…
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