Subcontractors unhappy over retention monies

News Article - 19 July 2006
Category: Business

Contractors are increasingly preventing their mechanical and electrical subcontractors from receiving retention monies, according to a study reported in Contract Journal.

The study by UK building services consultancy BSRIA found that subcontractors regard the rate of release of retentions is unsatisfactory.

Over a third of the subcontractors surveyed by the firm said that they were very dissatisfied with the payment of their retentions after the completion of their projects.

Principal research consultant for BSRIA Gerry Samuelson-Brown described the results of the survey as "dire".

"They are the worst of all the key performance indicator information I collect," she commented.

Attempts have been made to create a notion of partnership between contractors and sub-contractors, rather than retentions, but those efforts seem to be stalling.

Subcontractors are actually reporting that the practice of retentions is on the increase.

Failure by the construction industry to outlaw retentions was cited by eight out of ten clients.

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