We are a small company with a turnover of £1m and have worked successfully with small and major contractors. In all cases 100% of funds are released on completion of our works.
The 5% retention is also paid. To cover the retention we provide the client with a performance guarantee for the retention periods. This is a simple document, normally two A4 pages, comes from the bank and costs about £500 to set up.
The money is then in our bank account and can only be claimed by the client should we not fulfil our obligation to carry out any repair work which may be required.
This is a simple procedure that is also readily accepted by all parties.
Michael Green, Green Aluminium
What do you think? If you have views on anything published in Building, write to:
The editor, Building, 8th floor, Ludgate House, 245 Blackfriars Road, London SE1 9UY. Fax: 020-7560 4080. Email: firstname.lastname@example.org.
We may edit letters.