Retentions joy on Olympics

Trade contractors have hailed a decision by the Olympic Delivery Authority not to deduct cash retentions on London 2012 contracts.

Specialist Engineering Contractors’ Group chairman Trevor Hursthouse said: "The ODA’s retentions policy on Olympic projects will immediately benefit the cash flow of SMEs and make a significant contribution to the successful delivery of Olympic projects".

National Specialist Contractors’ Council spokesman Graham Wren added: "The outdated practice of deducting retentions has already been condemned as poor practice by a House of Commons Select Committee.  I am delighted that the ODA has acknowledged this and will be monitoring compliance with its retentions policy along the supply chain".

The ODA has confirmed that contractual arrangements with Tier 1 contractors will allow monitoring of accounts and records to ensure that retentions are not being deducted along the supply chain.