A common misuse of retention occurs where some works are outstanding at completion or handover of the project - the employer using this as justification to avoid releasing half of the retention money
The agency may revise the outlook to "positive", if the company's liquidity improves significantly on account of improvement in bargaining power with customers and quicker receipt of retention money
A big problem is that retention money
isn't ring-fenced, so if a main contractor becomes insolvent, it's lost.
In a complex situation there are issues surrounding pay, holiday pay, holidays and retention money
paid to some staff in school holidays.
Financial director Sebastian Bull' package was pounds 762,000, partly thanks to pounds 150,000 retention money
and a pounds 300,000 pay-off when he moved on.