The Specialist Engineering Contractors’ Group (SEC) has updated its list of clients that no longer include retention clauses in their contracts. New additions to the list include Aldi, housing associations Arena and Circle 33, DeVere Hotels, the Environment Agency, the Highways Agency, Ikea, Luminar Leisure and Yorkshire Water.

SEC Group chief executive, Rudi Klein, said: “Last year the National Audit Office expressed its disapproval of the practice of retentions by stating that they had an adverse impact on the industry's capacity. My estimate is that over 12% of construction, by turnover, is now a retention-free zone.”

However, Klein added that the SEC Group was still awaiting a clear message from the Olympic Delivery Authority that retentions will not be used on any Olympic project. To view the full list go to www.secgroup.co.uk.

Source

Electrical and Mechanical Contractor