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22 February 2011 | Angeline Albert
to Crossrail are to get a
fairer deal following its decision to sign up to a “no retentions” policy.
retention is commonly used to protect against sub-standard work on construction
projects. Around 5 to 10 per cent is often held back to put towards the cost of
a contractor not finishing a job or correcting defects. When the project is
finished, half of the fund is returned to the contractor while the other half
is retained by the client for a maintenance period of usually one year.
signing up to the National SpecialistContractors' Council's (NSCC) policy, Crossrail’s head of procurement, Martin Rowark, has agreed not
to withhold money owed to suppliers working on the UK’s biggest infrastructure
A company statement said: “There is little evidence to
show that retention results in better quality work and the practice has a
significant impact on the contractor’s cashflow.”
policy also states that it does not expect cash retention to occur in
its supply chain.
16 February, the NSCC celebrated the launch of its ‘no retention policy’, which
has the backing of 32 member organisations. A spokesman for the NSCC
said: “The best guarantee of quality lies in the choice of a competent and
qualified supply chain. By taking steps to create a more efficient and trusting
environment in which to work, Crossrail is demonstrating that there is no
longer a need for retentions in the construction industry and NSCC expects
other major clients to follow suit.”