The Bill stipulates that, unless the monies are protected, any clause in a construction contract enabling the deduction of cash retentions will be invalid. Cash retentions will have to be safeguarded within a retention deposit scheme. The Bill will apply to the whole of the UK.

The rules for establishing and operating retention deposit schemes will be contained in secondary legislation.  Such schemes may simply provide a 'custodial' service to ring-fence the monies or, instead, could provide insurance-backed alternatives. Schemes would be expected to provide quick and inexpensive adjudication or mediation procedures to resolve any disputes holding up release of the monies.

The Bill is a Private Member’s Bill, introduced by Conservative MP Peter Aldous at its first reading on January 9 2018.

It is the latest in a series of attempts made over many years by the Specialist Engineering Contractors’ (SEC) Group to overcome the abuse associated with the practice of retentions in the construction industry.

Speaking on behalf of SEC Group its chief executive, Professor Rudi Klein, said: “We know that ministers are sympathetic towards the Bill but, at this stage, the Government must issue a robust public statement of support for the Bill.”