Retentions

The House of Commons Business and Enterprise Committee has stated the practice of holding a retention against contractors as an insurance against defects undermines efforts to promote team-working and integrated supply chain in the construction. It also damages the cash – flow of smaller sub-contractors and reduces investment. Given that the practice is at odds with the Government’s promotion of integrated working through the Common Minimum Standards and the Construction Commitments the House of Commons Business and Enterprise Committee recommended that that all parts of the public sector end retentions as soon as possible.