Contractor Retention

[Water]

Hi all

 

We are using a main contractor for our build, we are proposing a 5% retention which the contractor has accepted and they want this paid on completion. Is this normal? I thought there might be a longer retention period although I accept 5% is a lot to hold on to.

 

Cheers

[nod]

28 minutes ago, Water said:

Hi all

 

We are using a main contractor for our build, we are proposing a 5% retention which the contractor has accepted and they want this paid on completion. Is this normal? I thought there might be a longer retention period although I accept 5% is a lot to hold on to.

 

Cheers

No

Im a contractor and leave between 3 and 5 % Payable three months after completion 

[the_r_sole]

3% and six months is usually my preference, it's tough to negotiate 5% and anything more than 3 ime

[Ralph]

Mine is 5% retention throughout the project dropping to 2.5% for 1 year for defects.

[Conor]

We're doing 5% of total contract value.

 

2.5% will be paid upon handover of documents, certificates etc and when architect signs it off. Remaining 2.5% will be paid after a three month defects period. We're not doing anymore than that as it's just a contract for a watertight shell.

Edited August 19, 2020 by Conor