Insights

‘Retention’ in Construction Contracts - A snagging problem?

Robert McDiarmid, partner and head of Dispute Resolution, features in the latest edition of the Bulletin published by Aberdeen & Grampian Chamber of Commerce and looks at an issue within the construction industry - Retentions. 

One aspect of construction projects that has continued to become an ever-present feature of dispute between parties is the use of contractual ‘retention’ as a means to create leverage and to protect cash flow. The concept of ‘retention’ in construction contracts is pretty straight forward. The employer is entitled to retain some percentage of the value of the work being carried out pending the conclusion of a rectification or snagging period.

Click on the image to read the article in full.