Retentions have long been the subject of criticism from contractors and industry voices alike. A retention is a percentage of the total value of work carried out certified to the contractor, but retained by the client to ensure all activities under the contract have been carried out.
40% of construction clients already operate quite happily without requiring retentions and the list is growing.
Peter Kitson reviews current practices and examines some alternatives – but why not scrap them, he asks?
Time to scrap retentions? is available to read on the Construction Law website via subscription.
Peter is a partner in the real estate team, and has specialised in non-contentious construction and procurement law since 2004. He drafts and negotiates development agreements, building and engineering contracts and professional appointments as well as advising on procurement and contract strategy. Peter also provides on-going advice and support in relation to the effective management of existing construction contracts.