“113A Prohibition of provisions allowing retention of sums otherwise due

(1)

Any clause in a construction contract, entered into after the passing
of the Construction (Retentions Abolition) Act 2021, which enables a
payer to withhold retentions is of no effect.

(2)

After the coming into force of the Construction (Retentions Abolition)
Act 2021, any retentions withheld must be paid in full, no later than
7 working days after the date on which they were due but withheld,
by the payer to the payee.

(3)

In this section—

“construction contract”, in addition to the meaning given  by
section 104, also includes any additional contract created to
have a similar effect for the purposes of withholding monies
which would otherwise be due under the primary contract to
provide the payer with security for the current and future
performance by the payee of any or all of the latter’s obligations
under the primary contract;

“retentions” means monies which are withheld from monies
which would otherwise be due under a construction contract,
the effect of which is to provide the payer with security for
the current and future performance by the payee of any or all
of the latter’s obligations under the contract.”