The UK-based Construction Liaison Group (CLG) is leading a campaign on behalf of specialist contractors to abolish retention payments, which allow main contractors to retain up to five percent of payments to sub-contractors in case the sub-contractor’s work turns out to be substandard. Subcontractors oppose the practice because it disrupts cash flow and creates problems when they try to claim the money back.
Several members of CLG—including the Lift and Escalator Industry Association, the Federation of Piling Specialists, and the British Constructional Steelwork Association—have developed alternatives to retention schemes, such as guarantee and bond schemes. According to CLG, retentions are contrary to the changing emphasis within construction to a no defects performance culture. CLG members are recommended to engage of supportive action to abolition the practice. For more information, contact the Construction Liaison Group.
