Retentions have been used in UK construction since the 1840s. Yet today, many in the industry are questioning whether they still offer the security they once promised.
Originally introduced during the railway boom, retentions were meant to protect projects. Today, they’re locking up billions in unpaid funds and pushing contractors closer to insolvency. In fact, it’s estimated that £3 to £5 billion is held in retentions across the UK construction sector each year, with much of it never recovered.
In this episode, we sit down with Gary Ashton, Partner at Hawkswell Kilvington Solicitors which is one of the UK’s few law firms focused solely on construction and engineering. Gary explains how retentions work, why they often go unrecovered, and what legal tools contractors have at their disposal.
We talk about:
– How retention works in the UK and why it’s so widely used
– The legal and financial risks retentions create during insolvency
– Why better contracts and clear payment terms matter
– Alternatives like escrow accounts, project bank accounts and retention bonds
If you have ever lost money on a project or struggled to recover withheld payments, this episode offers practical insight and expert advice from someone who sees the impact every day.
Learn more about HK Legal here: https://hklegal.co.uk
Apple Podcasts
Spotify
iHeart Radio
Amazon
For the audio transcript, please visit this page.
