Holdback
In construction, the concept of a retention can sometimes, and in some jurisdictions, be referred to as a ‘holdback’.
Retention is a percentage (often 5%) of the amount certified as due to the contractor on an interim certificate, that is deducted from the amount due and retained by the client. Half of the amount retained is released on certification of practical completion, and the remainder is released upon certification of making good defects. The purpose of retention is to ensure that the contractor properly completes the activities required of them under the contract.
For more information see: Retention
Holdback is the same contractual mechanism as a retention; a proportion of the final payment is ‘held back’ from the contractor until the client is satisfied that the works have been completed to the specification.
In some countries, more than one holdback can be applied. For example, in Canada, a basic holdback may be retained form the total project cost, released after practical completion. A finishing may then be retained from the value of the work left to be done, released after project completion.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
AI and the challenges to intellectual property
The legal landscape of adopting AI now and in the future.
Worrying landscape for Welsh construction SMEs revealed.
In recent risk factor analysis report completed by CIOB.
Can your business afford to ignore mental well-being?
£70 - 100 billion annually in UK construction sector.
Mental health in the construction industry
World Mental Health Day 10 October.
Construction awards provide relief in wake of ISG collapse
Spike in major infrastructure awards, housing up but short of targets, are ISG collapse impacts yet to come.
Biodiversity net gain with related updates and terms
Only 0.5% of applications subject to BNG in the context significant proposed changes to planning.
As political power has shifted from blue to red
Has planning now moved from brown to green?
The role of construction in tackling the biodiversity crisis
New CIOB Nature of Building digital series available now.
The Nature Towns and Cities initiative
Grants of up to 1 million for local councils and partners.
The continued ISG fall out October updates
Where to look for answers to frequently asked questions.
Building safety remediation programme for Wales
With 2024 October progress updates.
In major support package for small businesses.
Conservation and transformation
Reading Ruskin’s cultural heritage. Book review.
Renovating Union Chain Bridge.
AI tools for planning, design, construction and management
A long, continually expanding list, any more to add?