Specialist debt recovery services for the construction industry
Payment terms in the construction industry have special features which differ from other industries. One feature is that a small amount of money, usually between 1.5 and 5%, is deducted from payments and held by the main contractor/employer.
This is known as a retention and is held so that if there are defects in the work, a fund of money is available to put them right. Typically, half of this fund is released on completion of the works and the second half at the end of the maintenance period, which can be over a year after the work was carried out.
This sum of money is invaluable, contributing significantly to the profit margin on most contracts. It is essential that retentions are collected promptly, as chasing payments is time consuming, ties up staff and requires tenacity and perseverance.
Construction retention laws
Nelsons’ debt collection team, in conjunction with our specialist construction law team, have experience and knowledge of the law surrounding retentions and this allows them to collect them quickly and effectively.
We will work out when payment is due to you and contact you to agree when collection should be made.
Price
The charges for our construction retention collection service are transparent and easy to follow. We offer fixed fee services which are based on the amount due to you.