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.
Source
Electrical and Mechanical Contractor
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