CCG supports the use of retentions

The retentions debate has reopened again after the Construction Clients' Group (CCG) voiced its support for its members' use of retentions.
CCG executive director Christopher Morley told CJ: "For a significant proportion of our members, particularly but not exclusively the small or occasional clients that cannot offer some promise of repeat work, retentions remain both a legitimate and necessary business choice."
Morley did state, however, that the CCG is against "any abuse of retentions practice" which should "come to an end".
He also linked the need for retentions to latest research that shows defects at project handover are the same this year as in 2003.
"It is paradoxical to argue that because high instance of defects continue despite the practice of retentions that the option of retentions ought to be removed," he added.
These views received a strong response from the Specialist Engineering Contractors' (SEC) Group, which sits on the Strategic Forum alongside the CCG.
"There is absolutely no link between defects and retentions," said SEC Group chief executive Rudi Klein. "It is more likely that a contractor will do a bad job if money is being withheld."
The CCG was launched in April and is making good progress, Morley said. The group's membership now accounts for 41 of the top 50 public and private sector clients by spend.
Achievements so far include a complete overhaul of the Clients' Charter, which has been broken into three tiers (the basics, project performance and continuous improvement).
The CCG also wants all its members to introduce contract clauses demanding Construction Skills Certification Scheme accreditation.