Reporting on Retentions

Draft legislation to amend the Reporting on Payment Practices and Performance Regulations to include new metrics on retentions was laid just before Parliament was dissolved last month. Large companies will be required to publish the following information as part of their payment reports every six months:

• A series of statements confirming whether retention clauses are used and if so whether there are any standard terms
• A description of the process for release of retention
• A sum showing the overall value of retentions held by the company from its suppliers as a percentage of that held by its clients
• A sum showing the total retention held from the company’s suppliers as a percentage of all money paid to suppliers.

Build UK understands that this legislation will be taken forward after the election if agreed by the new Ministers, and as it stands companies would be required to report on the new retentions metrics from 1 January 2025.

Source: Build UK (13.6.24)