Retentions under the Construction Contracts Act - Note from Simpson Grierson
Local authorities will be required to hold any retentions on construction contracts entered into after 1 April 2017 in cash or liquid assets. The obligation applies to all retention above a minimum that is to be set in regulations.
We asked Simpson Grierson to provide a note on the implications for local authority practice and whether there are other means of assuring contractor performance.
Note: this will be updated when the rules for accounting treatment and the de minimis amount are known.