Interest, Retention
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Interest on Retention
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Disclaimer: This information does not constitute legal, professional or commercial advice. Any views, opinions and guidance stated here are provided for information purposes only, and do not purport to be legal and/or professional advice or a definitive interpretation of any law. Anyone contemplating action in respect of matters stated here should obtain advice from a suitably qualified professional adviser based on their unique requirements. 

Is a sub-contractor entitled to interest on retention held by the main contractor (JBCC form of contract)?

Interest on retention money is not addressed in the JBCC suite of contracts and must be specifically agreed to.

 

Retention money belongs to the main contractor until certified for payment (English law) and therefore no interest on retention money can be claimed by the subcontractor (unless agreed to otherwise).

 

In previous generations of building contracts, provision was made for a joint account to be opened and interest earned on money in these accounts belonged to the subcontractor. However, this provision is not part of the current generation of JBCC contracts.