Paid a sub-contractor retention and now can't get it back
Discussion
Morning all
As the title states, my boss is a sub contractor to a larger contractor the utility industry. He has paid a £10k retention which is supposed to cover defected works on both re-instating work and pipe laying defects for two years I. Which he has contributed to.
He ceased working for the large contractor in 2013. The contractor has returned £5k of his retention pretty quickly, but kept the remaining £5k for the rest of the two year period, as is the norm.
The two year period has ended (march 2015) and he is struggling to make the contractor give him the remainder of his retention.
As far as we know, there haven't been any defects on his work in this period, and I'm sure the contractor would have told him, with proof to back it up that there has been alterations on anything he has his name against.
There are many small sub contractors who have money owing to them from this large contractor. Some are owed ten times what my boss has put down.
Is my boss chasing his own tail? It's a fair chunk of money to lose for anyone.
Any advice appreciated
Cheers
As the title states, my boss is a sub contractor to a larger contractor the utility industry. He has paid a £10k retention which is supposed to cover defected works on both re-instating work and pipe laying defects for two years I. Which he has contributed to.
He ceased working for the large contractor in 2013. The contractor has returned £5k of his retention pretty quickly, but kept the remaining £5k for the rest of the two year period, as is the norm.
The two year period has ended (march 2015) and he is struggling to make the contractor give him the remainder of his retention.
As far as we know, there haven't been any defects on his work in this period, and I'm sure the contractor would have told him, with proof to back it up that there has been alterations on anything he has his name against.
There are many small sub contractors who have money owing to them from this large contractor. Some are owed ten times what my boss has put down.
Is my boss chasing his own tail? It's a fair chunk of money to lose for anyone.
Any advice appreciated
Cheers
DeanR32 said:
Is my boss chasing his own tail? It's a fair chunk of money to lose for anyone.
Who knows... maybe he's going to go under and just dragging it out as long as he can.As is often the case here... whoever shouts the most gets paid first. Moreso if you're owed far less than other people. So constantly phone, turn up at the office etc. Query whether they're going bust. If you're only owed £5k and its not much in the grand scheme of things, you may be able to get paid just to shut you up. And everyone else likely won't get paid at all.
What does the contract say about retention monies?
It should be pretty clear cut in there about any unreturned retention, if they don't have a contract then there`s going to be tears, what is the subbie saying his reason for hanging on to it?
Has he had to perform re-works or any other legitimate reason for holding back?
These need to be checked before you start demanding back, if they have a contract and one is holding back then go legal on it, the subbie wont have a leg to stand on if he is in the wrong, as long as a contract is in place and he has no legit reason for hanging on to it.
It should be pretty clear cut in there about any unreturned retention, if they don't have a contract then there`s going to be tears, what is the subbie saying his reason for hanging on to it?
Has he had to perform re-works or any other legitimate reason for holding back?
These need to be checked before you start demanding back, if they have a contract and one is holding back then go legal on it, the subbie wont have a leg to stand on if he is in the wrong, as long as a contract is in place and he has no legit reason for hanging on to it.
having been a QS for a large construction firm retentions are an absolute pain in the ar$e. basically you just need to keep hassling them to get any traction.
I would send them a letter showing the last valuation (showing any deductions/retentions) and a copy of a signed final account (assuming they got a signed final account) and just state that seeing the 2 years have passed and no claims/ rectification of work has been then you would likethe retention paid. or even raise a new invoice or a final application for payment.
the trouble could be the QS/team involved on a project will have dealt with many different projects since, have a ton of final accounts, loads of retentions sitting due and unless you can show them the evidence that its due to you, they'll prob not look into it.
I would send them a letter showing the last valuation (showing any deductions/retentions) and a copy of a signed final account (assuming they got a signed final account) and just state that seeing the 2 years have passed and no claims/ rectification of work has been then you would likethe retention paid. or even raise a new invoice or a final application for payment.
the trouble could be the QS/team involved on a project will have dealt with many different projects since, have a ton of final accounts, loads of retentions sitting due and unless you can show them the evidence that its due to you, they'll prob not look into it.
Ross1988 said:
Is it Balfour Beatty?
They have a track record of this sort of practice and will try to withhold payment until the company goes bust.
I don't think this is a wise thing to be spreading about. Attempting to keep hold of retention money is something that many large contractors do. It wouldn't be in the interest of contractors to try and make companies go bust. Why would it? The more they go bust the less companies there are to compete for work and the more likely they are to incur more costs on sites that they are currently active on. They have a track record of this sort of practice and will try to withhold payment until the company goes bust.
OP - very simply send in a final payment application. If, and when, they don't send you a Payment Notice or Pay Less Notice you have them over a barrel.
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