The use of retentions in the UK construction industry second report of session 2002-03 report, together with proceedings of the Committee, minutes of evidence and appendices
House of Commons papers 2002-03 127
- Format:
- Corporate Author:
- Great Britain Parliament House of Commons Trade and Industry Committee
- Author:
- ONeill Martin chairman
- Publisher:
- TSO (The Stationery Office)
Under the retention system, once a construction project has been costed out, the client will apply a reduction (of at least 5 per cent) to the gross valuation of the project. Until the completion stage of the contract, the client holds the agreed retention sum. Half of this is paid over to the primary contractor once the project is certified complete. The other half is held until the end of "defects liability period" or "maintenance period".Retentions do not have any practical effect on the quality of work or the rate of defect rectification, but may be helpful when the contractor becomes insolvent. Contracts could be amended to produce the same effect by another means. However, retention bonds and warranties could be more expensive to clients and contractors. Small or infrequent clients may not wish to abandon retentions. Construction procurement practice across government departments, should be more consistent. The Committee does not recommend the abolition of retentions through legislation.
Extent | 22, Ev 112p. | ISBN | 9780215006578 |
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Size | N/A | Price | £16.50 |
Format | Paperback | Published | 04 Dec 2002 |
Availability | Out of Print: but may be available to order | Delivery | Delivery options and charges |