NEC ECC: Retention on contracts

NEC3 and NEC4 Contracts Secondary X, W and Y options
1

Please can you advise on the items that are NOT subject to retention on NEC Contracts?

Is there a different answer when it comes to JCT contracts?

2

Very simply:

  • to be subject to retention, option X16 has to be specified. If it is not, then there can be no retention.
  • if X16 is specified, then the ‘retention percentage’ stated in Contract Data part 1 by the Client is retained from the Price for Work Done to Date as defined in the various main options.
  • however, no retention is retained until the PWDD has reached the ‘retention free amount’ as specified in the CD Part 1 (normally as zero!). Thereafter, it is retained at the retention percentage on amounts in excess of this until …
  • Completion is achieved whereupon half of the retention is payed back with the remainder after the ‘defects date’.