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JCT aproves retention bond
00:00 09 Dec 1998
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by Kathy Watson
The Joint Contracts Tribunal has approved the issue of optional provisions for a bond in lieu of retention. The move will please specialist contractors who, for years, have been pressing for a bond scheme to replace the existing retention system whereby money is deducted from payments due to contractors.
Specialists claim that the existing system is open to widespread abuse. The model bond terms have been agreed by the JCT with the British Bankers Association and the Association of British Insurers.
"This is something we have been trying to get for some time," commented JCT secretary Philip Povey. "The problem has been to get the bond wording right."
The Joint Contracts Tribunal has approved the issue of optional provisions for a bond in lieu of retention. The move will please specialist contractors who, for years, have been pressing for a bond scheme to replace the existing retention system whereby money is deducted from payments due to contractors.
Specialists claim that the existing system is open to widespread abuse. The model bond terms have been agreed by the JCT with the British Bankers Association and the Association of British Insurers.
"This is something we have been trying to get for some time," commented JCT secretary Philip Povey. "The problem has been to get the bond wording right."
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