We are the UK Retention Deposit Scheme
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.
How the UK Retention Deposit Scheme interacts with your construction contract
Many standard-form contracts (including many JCT contracts) contain language that requires construction retentions to be paid into a separate bank account by the paying party, who holds those retentions as trustee on behalf of the receiving party. For those contracts, our accounts are plug-and-play.
For other contracts, our Scheme Rules are designed to override any retention provisions only to the extent necessary to produce the same result.
How to open a Retention Deposit Account
Accounts can be opened online, 24/7, using our Account Portal. Simply upload your contract and we will take the paying party through the necessary compliance requirements before providing you with the bank details for your account.
Where the funds are held
We hold all construction retentions at the Bank of England. They are kept liquid and unencumbered, in the paying party's name (as trustee for the receiving party) so, in the unlikely event of our insolvency, they remain protected and available for the receiving party. We operate detailed safeguarding arrangements and provide all of the details of the account to you when it is opened.
How to monitor the retentions balance
Our Account Portal shows the balance of each retention account and each transaction made against it. We also have links to various accounting packages enabling the receiving party to view their retentions directly within their accounting package, just like a normal bank account.
How much does a Retention Deposit Account cost?
We do not charge for holding construction retentions under your contract. The accounts do not pay interest, so the interest accruing (if any) contributes to our costs of running the scheme. There are no hidden fees, no transaction charges, and no ongoing monthly costs either. We simply offer fee-free, safeguarded protection.
How do I get my retention at the end of the works?
At the end of the works, your contract will determine the basis upon which the retention can be released. In the event of any dispute between the parties, we will simply hold the retention while the dispute resolution process continues. In the event that the contract does not contain any dispute resolution mechanism, the parties will usually be able to adjudicate using the Scheme for Construction Contracts.
We will release retention against any enforcement order from the Court, though we would generally expect parties to consent to us releasing it against the decision of any adjudicator that directs the same.
