Retentions – holding back a proportion of monies owed until a job has been completed to the satisfaction of the buyer – is a long established contractual practice in the construction sector. However there is very limited evidence on the impact of retentions, and on alternatives to this approach.
Pye Tait has recently been commissioned to undertake an evaluation of the current practice of retentions, its costs, benefits and impacts for the sector, and the costs and benefits of alternative practices.
Using a combination of expert input, desk-based research and qualitative and quantitative feedback from the sector, we will be looking at all parties to construction contracts – from the client, whose interests the retention is ultimately there to protect, through to specialist contractors in the supply chain.
Central Government Client