Meaning if you don’t have it covered, it can come back to haunt you.
Retention is the percentage of the payment value (as stipulated in the contract), that is held by Tier 1, as a form of security for the quality of the finished job.
Retention allows Tier 1 to have security regarding workmanship and materials.
I discuss SECURITY in the short video here:
Or you can carry on with this quick read.
In every contract, you’ll be asked to sign something around security.
Always opt for retention if your cash flow can handle it.
But this means you need to have a very strong gauge on your cash flow or you could run into trouble.
Retention is a lot cheaper in the long run.
Retention means you don’t pay for anything, the Tier 1 just holds your money to guarantee the quality of the job that you’ve signed up for.
When deciding on how to sign a contract you must always do an assessment where you analyze the risk of the project. You want to get rid of security if possible, otherwise have all money paid back on practical completion.
If Tier 1 insists on a defects liability period make sure you don’t have a re-warranty or rectification period that tags on another 12 months.
And as with everything contractual… ALWAYS follow the exact procedure.
This means knowing and understanding the clauses in your contract so you get your money back as soon as possible after practical completion.
We are on hand to make sure you sign the least risky contract you can, that’s our guarantee.
TO SIGN SUBSTANTIALLY LESS RISKY CONTRACTS, CLICK THIS LINK: https://quantumcs.co/guaranteearticle