Retention has had its day… Unjustified late and non-payment of a retention is unacceptable BEIS Report October 2017 Or perhaps that is wishful thinking? Build UK is implementing the Construction Supply Chain Payment Charter to move to zero retentions by 2025 (although some more enlightened employers like Network Rail have
The retention is a separate ‘pot’ of money, which increases in line with the price paid to the contractor. Retention is the contractor’s money which the employer kidnaps and holds to ransom until the end of the defects period. According to the 2017 BEIS research paper retention is “is a
5 years ago I wrote a post about whether you could trust an employer with your retention. In the light of Carillion’s pending/actual/recent insolvency* (delete according to when you read this), I wanted to clarify the legal position on retention. For simplicity the employer refers to the paying party –
In 2013, you couldn’t fail to be aware of the debate going on in the media as a result of the announcement from Carillion that it was going to extend its payment terms for subcontractors to 120 days. Buy why does it matter so much? Cashflow is king As far
This morning I ended up in a lively discussion over breakfast about who ‘owned’ Pooka, the cat in the photo. Our discussion was frivolous. But what about plant, materials, equipment or goods on a construction site? Then the debate really does matter. Who owns construction materials? There are two types
A bond is a contract which allows the recipient (the employer) to bring a claim against the bondsman (a bank or insurance company) if a ‘trigger event’ occurs during the construction project. The precise rules for bringing a claim depend on the words of the bond itself. Getting paid under
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