It was with interest that I read that the Olympic Development Authority (ODA) says it will not be using retentions in its contracts, but has stopped short of banning them along the supply chain.
Although main contractor will be pleased with this development, many of them will see no disparity in subjecting subcontractor’s payments to the deduction of retention. This is hardly conducive to collaborative working. Perhaps the ODA failed to appreciate that if they allow main contractors to hold retention from subcontract payments when none is withheld from them, this will equate to a substantial interest free loan. Nice work if you can get it.
Roger Knowles, president, QSi