Jurisdiction(s):
United Kingdom

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...

Retention and Rescission in Scots Contract Law: Mutuality, Material Breach, Ultimatum Procedure, Practicalities, and Proposed Statutory Reform

Published by a LexisNexis Dispute Resolution expert

Practice notes

This Practice Note examines Retention and Rescission in Scotland.

For guidance on:

other forms of relief in Scottish civil litigation, see Practice Notes: Interdict and Interim interdict in Scottish civil litigation, and Specific implement and interim specific implement in Scottish civil litigation
key aspects of Scottish civil litigation, see: Scottish DR: prescription and limitation—overview; Scottish DR: case management and evidence—overview; Scottish DR: civil appeals and judicial review—overview; Scottish DR: enforcement—overview; and Scottish DR: settlement and ADR—overview, which in turn link to detailed guidance on specific elements of dispute resolution in Scotland
other key areas of Scottish law and procedure, see our Scotland collection
the closest equivalent in England and Wales, see: Contractual breach damages and remedies—overview which, as well as an overview, links to further detailed guidance on remedies for breach of contract in England and Wales, including Practice Note: Rescission of a contract

Note: the remedies of retention and rescission are classed as ‘self help’ remedies because they can be exercised without first raising court proceedings. Both are rooted in the common law.

Retention—meaning

The term ‘retention’ in Scots law is one which...

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Jim Cormack

Pinsent Masons

Jim is a Solicitor Advocate with rights of audience in all civil and criminal courts in Scotland and in England & Wales, and is lead partner on Pinsent Mason's advocacy programme. He has extensive experience as an advocate before courts and in other types of dispute resolution. His recent advocacy work includes success in a trial before the Commercial Court of the High Court in London and success in a case heard before the General Court of the European Union. Jim also has a particular interest in alternative dispute resolution, being a member of the Chartered Institute of Arbitrators and an accredited mediator. Jim works in a wide range of areas, with a particular focus on commercial contract, banking and finance, and intellectual property disputes, along with media and technology regulation. Jim is recommended in the Legal 500 and is a Band 1 Ranked Lawyer in...

Web page updated on 21/05/2026

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