{
  "url": "https://openlegislation.uk/reporting-on-payment-practices-and-performance-regulations-2017/schedule-2/paragraph-13",
  "json_url": "https://openlegislation.uk/reporting-on-payment-practices-and-performance-regulations-2017/schedule-2/paragraph-13.json",
  "legislation": "uksi/2017/395",
  "legislation_title": "The Reporting on Payment Practices and Performance Regulations 2017",
  "legislation_url": "https://openlegislation.uk/reporting-on-payment-practices-and-performance-regulations-2017",
  "path": "schedule/2/paragraph/13",
  "kind": "paragraph",
  "number": "13",
  "heading": "Interpretation",
  "text": "In this Schedule—\n“client” means the person to whom the qualifying company supplies goods, services or works pursuant to a qualifying construction contract;\n“condition” (in the definition of “retention clause”) includes condition that some or all of the monies are not to be released until one or more of the following occur—\n(a)B has met all of its obligations under the contract;\n(b)B has met specified conditions under the contract;\n(c)a period set aside for making good any defects has expired;\n“contract sum” means the sum of—\n(a)the amount payable to the supplier (“B”) for any goods, services or works supplied by B, in accordance with the terms of the qualifying construction contract; and\n(b)any additional monies payable to B, in accordance with the terms of the qualifying construction contract;\n“retention clause” means provision in a qualifying construction contract that permits one party to that contract (“A”) to deduct or retain monies equating to a percentage of—\n(a)the amount payable to another party to the contract (“B”) for any goods, services or works supplied by B in accordance with the terms of the qualifying construction contract between A and B;\n(b)an interim payment due to B in accordance with the terms of the qualifying construction contract between A and B; or\n(c)the contract sum of the qualifying construction contract,\nuntil any condition set out in the qualifying construction contract for release or partial release of the monies to is met;\n“standard payment terms” means, in relation to a qualifying construction contract—\n(a)the standard terms relating to payment that the qualifying company uses for qualifying construction contracts; or\n(b)where the qualifying company does not use standard terms, the qualifying company’s most frequently used payment terms for qualifying construction contracts; and\n“standard percentage rate” means, in relation to a retention clause—\n(a)the percentage rate that is always used to calculate the amount deducted or retained in any retention clause in a qualifying construction contract between the qualifying company and its supplier; or\n(b)where the qualifying company uses different percentage rates for calculating the amount deducted or retained pursuant to any retention clause, the most frequently used percentage rate used in retention clauses in qualifying construction contracts between the qualifying company and its suppliers.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Sch. 2 inserted (in relation to each financial year of a company beginning on or after 1.4.2025) by The Reporting on Payment Practices and Performance (Amendment) Regulations 2025 (S.I. 2025/75), regs. 1(2)(4), 7"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2017/395/schedule/2/paragraph/13",
    "retrieved_at": "2026-10-28T23:12:48.714001+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}