Hi,
We are working on a JCT D&B 2016 subcontract and have completed our contracted works. However, we are currently receiving a steady stream of minor additional works and the main contractor is refusing to release the first 50% of our retention as we are yet to achieve practical completion. Does anyone have any advice on the best way to proceed?
Assuming that you are contracted on the basis of a Standard JCT DB Sub-Contract then you need to look at Clause 2.20 that deals with Practical Completion. You can assert that Practical Completion has been achieved under Clause 2.20.1 and if the Main Contractor does not disagree then PC is deemed to take place 14 days after you assert that it has. If the Main Contractor does not agree then he needs to issue a PC Certificate as soon as he thinks the Sub-Contract Works are Complete. That cannot be later than Practical Completion under the Main Contract so if that has happened then PC of your Sub-Contract Works is deemed to have occurred. Retention should be released as required under Clause 4.12.2 and that requires half the retention to be released at PC. The balance of retention is paid once any ‘apparent defects’ [see Clause 4.12.2.3] have been attended to. You dont have to wait until end of Main Contract Making Good Defects to get your second half of your retention.
Thanks for the prompt reply. I’m sure that if we issue a notice under 2.20.1 they will disagree as we have additional works outstanding. We have verbally asked them to release it and this has been their response.
To rephrase my question, is there anyway that we can get half the retention released whilst we are continuing to receive instructions for additional work?