Government set to ban retentions

Construction Enquirer
Grant Prior
24 Mar 2026

The Government is planning to ban retentions in construction as part of a major crack down on late payments.

It said: “We propose to ban the withholding of retention payments under the terms of construction contracts, consulting on its implementation.

“This will prevent small firms losing retentions to insolvency or non-payment.”

Initial consultations showed the majority of the industry is in favour of a total ban rather than an alternative system like project bank accounts.

Concerns raised about a ban included ensuring the scope of the legislation is broad enough to prevent circumvention, and the cost and availability of alternative forms of surety...

Government set to ban retentions | Construction Enquirer New | 24 Mar 2026