First Retentions Benchmark for Construction Sector Published

As part of the drive to improve payment culture across the construction sector, Build UK has published updated payment results for the largest companies in the industry which for the first time includes data on retentions.

In line with new reporting requirements introduced by the government in 2025, the Build UK payment performance table now includes the following information on retentions:

• Whether a company uses retention clauses
• Amount of retention withheld as a percentage of all payments to suppliers
• Amount of retention withheld from suppliers as a percentage of the amount withheld by clients.

Retentions Data

The data shows that the average rate of retention withheld by Build UK tier one contractor members is 2%. Of the retentions withheld against them by their clients, contractor members are currently withholding on average 74% from their own supply chains, absorbing the remaining 26% themselves. This demonstrates the significant impact of retentions on cashflow at all tiers of the construction supply chain.

Build UK has been benchmarking its members and the wider industry on payment performance since 2018, using information submitted under the Reporting on Payment Practices and Performance Regulations.

The average time taken to pay invoices by contractor members has reduced from 45 days to 29 days, and the percentage of invoices paid within 60 days has risen from 82% to 96% during this period.

Industry Benchmark

With the Commercial Payments Bill currently progressing through Parliament including a ban on the use of retention clauses, Build UK says the new data on retentions will provide a benchmark for progress on this long-standing issue.

Jo Fautley, Deputy Chief Executive of Build UK, said: “In the same way that we have been providing transparency on payment performance since 2018, we are now shining a spotlight on retentions.

“The data reveals for the first time the impact on tier one contractors, as well as the rest of the supply chain which has been managing the problem of retentions for years. The ban on retentions in the Commercial Payments Bill will not only address the issues with payment but encourage collaboration and require the sector to manage quality in a more effective way.”

Paul Beeston, Construction Leadership Council Industry Sponsor for Business Model Reform, added: “As the Commercial Payments Bill progresses through Parliament, the construction industry faces significant changes to payment practices, including the proposed ban on cash retentions.

“The Construction Leadership Council has been clear in its ambition to promote more sustainable commercial models that deliver better outcomes for clients and across the supply chain. Build UK’s benchmarking provides an important baseline against which progress can be measured as the industry evolves its commercial practices.”

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