Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Retention definition

What does Retention mean? In construction contracts, retention is a portion of each interim payment (often 3–5%) withheld by the employer or upstream contractor to secure completion and the remedy of defects. It is a contractual mechanism, not a statutory term, and is widely used across England and Wales, Scotland, Northern Ireland and Ireland in standard forms (e.g. JCT, NEC, PWC). Typically, half of the retention is released at practical completion (NEC: Completion; Ireland PWC: Substantial Completion) and the balance on expiry of the defects liability/rectification period, usually evidenced by a certificate of making good defects or a defects certificate. Sectional completion may trigger...

Corporate restructuring and insolvency: managing suppliers and customers, utilities/IT essential supplies and ipso facto clauses, and retention of title claims (types, identification and onward sales)

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

Although suppliers are usually unsecured creditors (unless a valid retention of title (ROT) claim is established), they can be central to achieving a turnaround or a pre-pack sale. Equally, winning customer support is often a crucial ingredient of a workable turnaround business plan. This Practice Note sets out how a company facing financial difficulty should engage with different types of suppliers and customers, as well as how to respond to ROT claims advanced by suppliers...

Suppliers

The initial due diligence carried out on the company should identify those suppliers that are critical to ongoing trading—namely, sole providers of essential goods or services, or situations where moving to alternatives would entail lengthy lead times (for example, credit card machines, IT systems, or computer and accounting software often embedded within the business). The company ought to prioritise outreach to these suppliers through a structured communications plan...

Suppliers delivering non-key products/services, and those charging excessively (where contracts will need to be renegotiated or replaced with cheaper suppliers), will generally be addressed separately...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Anthony Wright

FRP

Tony is a partner at FRP Advisory. He trained and qualified at RSM, having qualified as a chartered accountant in their audit department before spells in their corporate finance and corporate recovery departments. He spent 17 years with RSM and following his passing, his Joint Insolvency Examinations was made a partner in their Restructuring and Insolvency team in 2009. Tony moved to FRP Advisory’s London office as a partner in 2013 where he has worked on some of the firm’s highest profile appointments. Tony has over 20 years’ experience of advising corporates across all stages of their business life cycle, with a particular focus on stress and distress. Tony regularly works with business owners and their stakeholders such as banks, ABLs and PE Houses, across a range of sectors – from small SMEs to large corporates – in both an advisory role and in formal...

Web page updated on 21/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...