Protecting construction retentions
We don't lend, invest or leverage your retentions. We simply hold all deposits in full and unencumbered at the Bank of England, always keeping them fully available on demand.
Retentions are protected from the trading activities of any underlying bank, meaning that even if the worst happens to a bank, or there is a run on its funds, your retentions are secure.
The UK Retention Deposit Scheme is an independent scheme for the protection of retentions under construction contracts. We provide segregated bank accounts for construction retentions under standard-form and bespoke construction contracts in England and Wales.
There have been many attempts at Retentions Reform in England and Wales. The most recent Construction (Retention Deposit Schemes) Bill sought to make the protection of retentions in third-party administered bank accounts mandatory by way of an amendment to the Construction Act.
Although it did not make successful passage through the legislative process, our accounts exist as if it had, and as if we are operating an official Retention Deposit Scheme. Our Scheme Rules enshrine the practical and legal requirements of a Construction (Retention Deposit Schemes) Bill-compliant scheme.
Many standard form contracts contain provisions requiring the paying party to place any cash retention in a separate, segregated bank account. Our Retention Deposit Scheme accounts satisfy these requirements out of the box.
For any contracts that don't, or where standard-form contracts have been amended to exclude or amend the default retentions language, our simple Retention Deposit Deed can be used with any construction contract, without any need to amend it once it has been signed.
A Retention Deposit Account can be opened by any paying party under a construction contract (be they an Employer, Contractor or Sub-Contractor) to protect and set aside any cash retentions they withhold, for the benefit of their supply chain.
We open Retention Deposit Accounts at any time prior to practical completion of the works.
