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Retention Fee!
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J. Deans
Guest
Retention Fee!
«
on:
September 03, 2007, 02:52:41 pm »
As some of you may know, most of the larger developers take a monthly retention fee from subcontractors.
This is generally to ensure that they complete the contract, as well a kind of holding fund to cover bad workmanship/materials, making-good etc.
The fee is usually 5%. Half is re-paid at contract completion and the other half 12 months later.
Often this is an automated re-payment system. But with one developer we have, their T&C's state they require a signed 'Works Completion Record.' So I phoned the QS (Quantity Surveyor) and he said he had never heard of this - and to simply write to the Accounts Department requesting release of the first half of the retention fee.
Now this sounds simple enough. But I like to do things properly and follow procedure and contract terms to the letter. (I also want to be professional and not look stupid - not such a problem on a forum!)
So I am asking for anyone with experience with this sort of thing. Who is the best person/department to ask for a blank Works Completion Record? Who do I get to sign it? Who do I return it to? Do I return it with a letter requesting release of the retention fee?
Finally, how do I request that the whole of the retention fee be released? After all, bad workmanship etc, should not apply to cleaners 'after-the-fact'. I mean, once it is clean - it is clean!
Thanks in advance for any advice.
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Jake
Cleanitup God
Posts:
348
Re: Retention Fee!
«
Reply #1 on:
September 03, 2007, 07:54:24 pm »
After 5 years doing builders cleans, hand on heart, we have never been stopped retention. Bad cleaning will show up before handover to a client, and not 12 months later, so retention shouldn't be an issue.
If retention was taken out of our money, I would take it up with the QS, and let him sort it.
We have just quoted a site for Redrow Homes, and their T&Cs mention retention, and to apply in writing to be exempted. If we get the site, that is what we will do.
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Exeter, Devon
J. Deans
Guest
Re: Retention Fee!
«
Reply #2 on:
September 03, 2007, 09:12:58 pm »
Thanks Jake.
To be honest, this was our first venture into New-build cleaning about 2 and a half years ago. I just assumed at the time that the retention clause was compulsory for all trades. You live and learn.
We are approaching the end of this contract now and the value of the retention fee is in excess of £5k.
I have been advised elsewhere to simply draft up my own Works Completion Record, including every clean for every plot and get it signed. Send it to accounts with a request for the release of the retention fee.
Do you think it is the QS or accounts that I should ask for release of the other half, without having to wait a further 12 months?
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Jake
Cleanitup God
Posts:
348
Re: Retention Fee!
«
Reply #3 on:
September 03, 2007, 09:27:35 pm »
I would go back to the QS, he should be able to authorise payment, good luck, hope you don't have to wait 12 months
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Exeter, Devon
PHILC
Guest
Re: Retention Fee!
«
Reply #4 on:
September 04, 2007, 08:35:06 am »
I would definately set up your own completion of works as this could save you thousands we allways get every apartment/house we clean signed off as soon as its done this then saves any confusion on whether its been cleaned or not.
you will be surprised how quickly rooms will get dirty again with trades carrying out thier snagging who dont give a poop about what youve cleaned.
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J. Deans
Guest
Re: Retention Fee!
«
Reply #5 on:
September 04, 2007, 09:03:03 am »
Hi Supreme.
Yes, we get every clean signed-off as well. But this currently stands at 700+ A4 sheets of paper!
In future, I will ensure that every plot on a development and every cleaning stage, with a space for a signature are included onto one document. This should keep the paperwork down to anything from say 5 - 40 pages. Much more managable.
Then I can simply enclose a copy of these with a Works Completion Record.
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Ryan Phillips
Cleanitup Full Member
Posts:
30
Re: Retention Fee!
«
Reply #6 on:
October 02, 2007, 04:59:15 pm »
Jake, i have also done builders cleans for redrow and they always stop retention however i generally get the full amount back on completion of the site or phase of the site did write to them to ask not to be stopped retention but no joy regardless of what t & c's say however i consider it a savings plan
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