Under the practice, clients can withhold 5% of the value of the contract until the architect has signed off the scheme as defect-free. The CLG is urging councils to abandon retention because it runs against the spirit of the best-value regime in local government, which replaced compulsory competitive tendering last April.
Rudi Klein, chief executive of the Specialist Engineering Contractors Group, part of the CLG, said retention was inimical to creating the trust that was a vital ingredient of partnering arrangements essential for best value.
He said: "It promotes distrust rather than trust. We want to promote something positive based on partnering and team working." The CLG is also recommending that local authorities provide training for procurement professionals.
