A consultation on the practice of cash retention under construction contracts

Closed 19 Jan 2018

Opened 24 Oct 2017


Purpose of consultation

The purpose of this consultation is to seek information on the practice of cash retention under construction contracts and gather views on the findings of the supporting documentation.

The consultation is relevant to any party to a commercial construction contract as defined by the construction contracts legislation. It is also relevant to adjudicators, arbitrators and lawyers. While this consultation concerns construction specific legislation it may also be relevant for those with an interest in prompt payment more generally and to insolvency practitioners. The legislation does not apply to residential occupiers.

The research report and Consultation Stage Impact Assessment are published alongside this consultation.

The consultation runs in parallel with one supporting the Post Implementation Review of the 2011 changes to Part 2 of the Housing Grants, Construction and Regeneration Act 1996.

What Happens Next

An analysis of the consultation responses will be produced in accordance with best practice guidance.

The consultation analysis, as well as wider engagement, will help inform the Government’s next steps.  

The consultation outcome will be published within 12 weeks of the close of the consultation or an explanation if this is not possible.


  • Construction


  • Regulation and red tape