If you're in construction - retention money is being abolished.
Not this year. But it's in a Bill that's already at Report stage in the Lords.
The government calls the Commercial Payments Bill "the most significant legislation to tackle late payments in over 25 years".
Most of the attention has gone to the headline measures: a 60 day cap on payment terms, and interest at 8% above base.
But it also bans retention clauses in construction contracts.
And "construction" borrows its meaning from the 1996 Construction Act, which names heating, ventilation, fire protection, drainage and other building services.
There's a two year transition, with the full ban landing around four years after it goes live.
But if a meaningful part of your working capital comes from retentions deducted from subcontractors, what replaces it once you can no longer write them into new contracts?
And is two years long enough to answer that properly?
