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Build UK releases first retentions benchmarks
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The data shows that the average rate of retention withheld by Build UK tier one contractor members is 2%.
Of the retentions withheld against them by their clients, contractor members are currently withholding on average 74% from their own supply chains, absorbing the remaining 26% themselves.
This demonstrates, Build UK says, the significant impact of retentions on cashflow at all tiers of the construction supply chain.
Build UK has been benchmarking its members and the wider industry on payment performance since 2018, using information submitted under the Reporting on Payment Practices and Performance Regulations, with significant results.
Jo Fautley, deputy chief executive of Build UK, said: “In the same way that we have been providing transparency on payment performance since 2018, we are now shining a spotlight on retentions.