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UK Retention Deposit Scheme

For sub-contractors

Protect your retention from an upstream insolvency.

Retention on your sub-contract is held in its own safeguarded account under the scheme, apart from the contractor's own money.

The payment chain, with the retention held apart from itPayments run from the employer to the contractor and from the contractor to the sub-contractor. The retention each payer withholds is deposited in the contract's safeguarded retention account, which sits outside the chain. Sub-contractor is highlighted.paymentpaymentEmployerContractorSub-contractorRetentionsafeguarded account
The retention is held apart from the payment chain, in the contract’s safeguarded retention account.

In short

  • Your retention is held in a subcontract account of its own.
  • It is held apart from the contractor's own money.
  • The Scheme Rules set out what happens if a party in the chain becomes insolvent.
  • You ask for release through the portal when your sub-contract says it is due.

What happens, in order

  1. First

    Your sub-contract names the scheme

    Agree it with the contractor when the sub-contract is negotiated.

  2. Then

    Retention is deposited

    As each valuation is paid, the retention withheld from you is deposited in the subcontract account.

  3. Then

    It is held at the Bank of England

    Safeguarded, and shown in the portal.

  4. Finally

    You ask for release

    When your sub-contract's release conditions are met, you make a Subcontract Release Notice through the portal.

Open a retention account

Online, one account per contract.

Open an accountRead the Scheme Rules