Draft legislation on retentions re-laid
After being withdrawn as a result of the General Election, the draft legislation to amend the Reporting on Payment Practices and Performance Regulations to introduce new metrics on retentions has now been re‐laid by the Department for Business and Trade (DBT). Large companies will be required to publish the following information as part of their payment reports every six months:
- A series of statements confirming whether retention clauses are used and if so whether there are any standard terms
- A description of the process for release of retention
- A sum showing the overall value of retentions held by the company from its suppliers as a percentage of that held by its clients
- A sum showing the total retention held from the company’s suppliers as a percentage of all money paid to suppliers.
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