The issue of retentions is one that the construction industry and the DTI are now fully aware of. Its increased prominence is in no small way thanks to the work of the Specialist Engineering Contractors' Group.
The ECA, as a leading member of the SEC Group, has campaigned hard for the phasing out of retentions. Defence Estates, NHS Estates and the Highways Agency have all indicated their willingness to discontinue retentions. This would fulfil the public sector's commitment to being a 'best practice client'.

This point was made by the SEC Group to the recent Trade and Industry Select Committee oral hearing. The hearing heard evidence recommending that retentions should be phased out by 2007, or earlier, on public sector work contracts at all levels.

In the interim the SEC Group has proposed that retentions should be released on the satisfactory completion of work. It will only require an amendment to the standard contract form to implement this change. Therefore, the Select Committee is being invited to recommend to the government a change in public sector contracts (including subcontracts) to require retentions to be paid on completion of the contractor's discharge of contractual obligations.

This recommended change would be welcomed but only as an immediate interim step towards a planned discontinuation of retentions in their entirety.