| Commentary

72 Retention money

| Commentary

72 Retention money

Construction contracts commonly empower the employer to retain a specified percentage1 of each payment which becomes due to the contractor, to be held as a form of security for the due performance of the works. The contract will govern the time at which the contractor will become entitled to the release of this money, and the rights which the parties meanwhile may exercise in respect of it2.

Where the contract provides that the employer’s interest in the retention is fiduciary as trustee, the contractor may by injunction compel the employer to pay the money into a separate account,

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