BESA says construction retention ban marks long-sought reform
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Construction retentions reform from BESA sets out the proposed ban and payment rules affecting cashflow across engineering services.
Categories: Featured News, Construction, Industry CommentTags: BESA, construction, engineering services, retentions, Small Business CommissionerBESA says construction retention ban marks long-sought reform March 30, 2026 8:12 am Iain HoeyShare this content Facebook Twitter LinkedIn Construction retentions move into reform phaseThe government has moved forward with plans to ban retentions in construction contracts, with implementation expected to take up to two years following further consultation and legislation when parliamentary time allows.The Building Engineering Services Association (BESA) welcomed the decision and said the proposal followed the government’s Late Payments Consultation, which set out a wider package of payment reforms.The consultation proposed prohibiting the withholding of retentions and also set out a maximum 60-day payment term, mandatory interest on late payments and stronger powers for the Small Business Commissioner to investigate and penalise poor payment behaviour.More than 850 formal responses were submitted to the consultation, with a large proportion coming from the construction and engineering services sector.BESA said it had been lobbying for reform on retentions and late payment practices for many years and took part in shaping the consultation.Representatives from the Department for Business and Trade attended BESA’s Council meeting in September to hear from members about the effect of retentions and poor payment culture across the indus...
