No builders on the 2012 Olympic sites will be allowed to hold payments back from subcontractors pending completion of projects, the Olympic Delivery Authority has confirmed
The ODA said retentions would be outlawed throughout the supply chain, expanding a previous commitment that it would not deduct retentions from main contractors.
Under the deal, the ODA will withhold payment from any of its “Tier 1” firms that use retentions.
Trevor Hursthouse, chairman of the Specialist Engineering Contractors’ Group, said the policy would “immediately benefit the cash flow of SMEs”.
The ODA said it would reserve the right to hold a retention “bond” in an independent account.