Problems with Retention

There has been a lot of coverage in the press recently about the rise in unclaimed retentions. In the current economic climate, the position is sure to worsen as more and more Clients and Main Contractors wrongfully withhold your hard earned cash.

Data compiled by building research group BSRIA shows that the country’s leading M&E companies were owed more than £600M in retentions at the end of 2007. The report quoted a harsh but increasingly common example where an M&E Sub-Contractor hadn’t been paid because landscaping hadn’t been completed under the Main Contract.

It is widely accepted that retentions are necessary because they give Clients and Main Contractors security against the risk of any failure by Main Contractors and Sub-Contractors to complete their obligations, including the making good of any defects. However, the retention system is open to abuse and it is not unusual for Main Contractors and Sub-Contractors to be waiting several years before recovering the final tranche of retention.

In some cases, retentions remain unclaimed simply because Main Contractors and Sub-Contractors consider it too costly to pursue and finance costs increase on overdrafts that could be reduced by the timely recovery of retentions.

Why Haleys?

Because Haleys can manage the recovery of retentions using their skill and knowledge acquired in 20 years of running a Commercial Construction Consultancy.

Do I have to pay?

Not until your retention monies are recovered. Haleys will recover unpaid retentions on a contingency fee basis. Haleys’ fee would be calculated in accordance with a sliding scale dependent upon the value of the retention. Full details of Haleys Terms and Conditions in respect of this service are available on request.

For further information please contact Retentions team on 0845 367 8820 or by email at
retentions@haleys-ltd.com