Updating the Construction Act - Retention Rights Changes?
Continuing the topic of Construction Act Improvement, what if any changes should be adopted to improve the way in which Retention is dealt with? Retention has been a cause of complaint and quarrel for all time in construction contracts. It is designed to allow the Paying Party (e.g. the Employer or Contractor) a means to hold on to money due, just in case there is a dispute later. It is normally 3% - 5% taken from the gross value of the account as work proceeds and is in theory paid at the end of the project when everything is agreed and signed off.
