Report Stage Completed, Third Reading Next: Construction Prepares For The Retention Ban

In April 2026, we considered the Government's proposal to ban cash retentions in construction contracts and the practical question of what the industry might use instead. The latest update published confirms that the proposed ban is moving rapidly towards the statute book.

Report stage concluded in the House of Lords on 15 September 2026, and the Bill is now scheduled for third reading on 20 October 2026. Many expect the Bill to become law during 2027, although its implementation timetable has not yet been confirmed. The proposed retention ban remains intact and continues to command broad support. The position has therefore moved on materially since our April note: the immediate question is no longer simply whether retentions will be abolished, but how the new regime will work in practice.