Retention Collection Services
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or   
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rcs2012@virginmedia.com




     
 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

Welcome to
Retention Collection Services
You are visitor No
AmazingCounters.com
MORE than just another Debt collection service
                 
If like us, you accept the laws of averages,
all our clients using our services can't be wrong?

     No RISK Retention Recovery ??? 

Don’t let them get away with it.  It is your money and you are entitled to collect it when it is due!
Oh how Main Contractors make excuses for non-payment of retention!

DO YOU want Guaranteed retention recovery after all your hard earned efforts?

If you need to know how to recover retention from a Main Contractor,

just give us a call on 01257 274595

What is Retention and How Does It Work?

Retention is money held by the Employer / Client / Main Contractor as a safeguard against defects which may subsequently develop and which the Contractor / Sub Contractor
may fail to remedy. 

Retention is usually set at either 5% of the value of the works or 3% in the case of some
(usually larger) contracts.  This percentage is then deducted from all the interim payments
made to the Main Contractor who then deducts it from all his sub-contractors. 
Once the works are complete (Practical Completion) by the Main Contractor,
 the percentage to be deducted should be halved and what is described as the first
Practical Completion release of the retention monies
should be paid back to the sub-contractor. 

This stage of the sub-contract works has different names in different contracts but
“practical completion” is a common term. 

Ordinarily there then follows a period commonly known as the “defects liability period”. 
This is usually either 6 months, 12 months or 18 months or longer (12 months is common place.) depending on your contract with your client or Main Contractor.

During this period the Main Contractor and therefore his sub-contractors have to
make good any defects in the works.

 Usually, unless remedial work is urgent, the works are inspected at the end of the defects liability period and a schedule of the defects is produced. 
The Main Contractor and his sub-contractors remedy the defects
and when they have done so, the works are inspected again
and what is commonly referred to as a
 “Certificate of Making Good Defects” is issued and the second
Final release of retention money is paid out. 

The collection of retention money is not usually on most
Specialist Sub-Contractors’ list of priorities.
 

Stop and think about that for a moment. 

What is your actual net profit as a percentage of sales? 

If you are like most Specialist Sub-Contractors, your actual profit after
overheads might be as low as 3% to 5% of sales. 
If Main contractors are hanging on to 3% to 5% of sales,
they are effectively hanging on to your
profit. 

In most Specialist Sub-Contracting businesses, attention is focused on the now,
the current jobs and the cash flow from those jobs. 
This is, of course, extremely important and attention has to be given to those issues. 
There will be many situations and problems competing for your time. 

Those that make the most noise should not necessarily get the most attention. 
It is easy to get side tracked by things that take up a lot of time and energy
but don’t have much payback. 

However, if you set clear priorities, you can focus on the collection of
retention money without affecting the rest of your business. 
You simply do not have enough time and energy to do everything yourself.

Not to mention the inconvenience or manpower

required to achieve the results you require. 

In order to improve the collection of your retention money,
you are probably going to have to delegate some of the work to others. 
You will need to decide who is to be responsible for improving retention collection
                       and who is actually going to do what.                        
Do not fall into the trap of delegating the task to someone who does not have the
skill and expertise to do the job.

For your team to be effective, they will have to overcome the likely problems
they will experience. 
Contractors’ accounts departments are good at putting off
Specialist Sub-Contractors’ accounts departments when it comes to retention. 
You may need to train and develop your people to improve their skills
as the collection of retention requires:

Ø  contractual knowledge

Ø  persistence

Ø  good people skills

Ø  a degree of assertiveness. 

There are many different contractual provisions but release of the first money of retention is normally linked to completing the works on site (usually by the Main Contractor),
the stage commonly referred to as practical completion. 

The date of practical completion is important for all sorts of contractual reasons
and one way or another, this date needs to be confirmed to the contractor
as soon as possible after the works have been completed. 
The Client will rarely issue a Certificate of Practical Completion,
 even if he is required to do so under the contract. 

Herein lies the Problem of most Specialist Sub Contractors: 
Handling the Practical and Making Good Defects certification dates.

Thereby ensuring payment of monies due release to you under terms of the contract. 

It is essential to keep good records and copies of any correspondence your team sends. 
This can be very time consuming and costly in reminding the
contractor just how often you have
asked him for your money! 

 At this stage, you need to seek professional use of our retention collection service.

Tried, Tested and Guaranteed to work.  

You need to also bear in mind that the Final release of the retention money to the Main Contractor by the Employer / client will depend upon the mechanism in the Main Contractor’s contract with the Employer /client.  This may provide for the Employer or his Architect or agent to inspect the works and to issue a Certificate of Making Good Defects which triggers the release of the Final retention. 

Clearly before such a certificate can be issued, any defects in the works have to be identified (usually by way of an inspection by the Architect or Employer’s Agent) and then corrected.  

As every single element of the works is being inspected for defects, this will, by necessity, include the work undertaken by a number of different Specialist Sub-Contractors. 
Any delay in remedying defects by any of the Specialist Sub-Contractors
could delay the issue of the Certificate of Making Good Defects
and thereby the release of your retention money. 

There are some Main Contractors who, by their very nature and organisational ability,
will be good at, and pride themselves on, their ability to deal with defects. 

Similarly, there will be those contractors who will be motivated to
deal swiftly and efficiently with defects in order to maintain
their relationship with the Employer / client. 

Unfortunately there will be a number of Main Contractors who are
dilatory and inefficient when it comes to remedying defects
or releasing Final retention monies. 
They may have no on going relationship to maintain
and be totally lacking in motivation to finalise the contract. 

There is usually very little financial benefit to the Main Contractor in obtaining
 release of the retention money. 
After all, dealing with the process is actually costing him money in staff time etc.
and once he has secured the release of the money, he should, in theory,
be paying it straight out again to all of his Specialist Sub-Contractors. 

In theory the Main Contractor should immediately
pay out the retention money he has received. 
Regrettably, one of the great weaknesses of the retention system
so far as Specialist Sub-Contractors is concerned,
 is that it provides the contractor with a golden opportunity
to receive money which he should be paying out but doesn’t. 

This failure to pay out may be accidental but more often than not, it is quite deliberate. 

The length of time the contractor can hang on to and utilise these windfall monies to run his business, will depend upon your ability to chase him for your money. 

     Still not convinced you require our services?

Some Specialist Sub-Contractors will not be very good at chasing their retention money
and some may even write it off altogether. 

The Main Contractor simply takes advantage of your generosity

Some Main Contractors will only pay out if the
Specialist Sub-Contractor chases him for the money. 
Other Main Contractors will deliberately set out to make it difficult
for Specialist Sub-Contractors to collect their retention. 
There are those even less scrupulous who are known to have a system in place for writing
 your money into their profits after a given period has elapsed.
 

Retention Collection Services 

Offer a complete, personal and professional approach to the
collection of your Retention Payments

based on a small percentage commission on monies recovered. 

No recovery  -  NO PAYMENT 

Our initial percent commission is based on your current retention total, length of time the payment is outstanding and other factors that can be discussed during our initial meeting. 

Annual reviews to adjust the percentage commission will be reviewed based on your current annual sales turnover inclusive of retention deduction.

We understand that most companies have sales contracts without retention monies being deducted; therefore to base on an annual gross turnover would be inappropriate. 

No payments from your client / s are made to Retention Collection Services
these are paid direct to yourself

Our commission payment from yourself is required to be paid at the beginning of each month and will be based on a percentage of the total monies received in the previous month. 

The following reports (if required) will be available for submission to yourself on a monthly basis: 

Ø  Full all client current retention history, inc, Total certified,% & Total due for release,
Practical Completion & Making Good Defects dates etc.

Ø  Current retention details of each client’s individual contract / s.

Ø  Current retention Total by individual client.

Ø  Current retentions / contract/s  being handled by your own Quantity Surveyor /s

Ø  Current all client retentions due release by date range.

Ø  Current clients with potential problems for none payment.

Ø  Current Total and details of clients-monies received to date by 1st and Final payment receipt.

 In addition as an alternative to our excellent service a Bespoke computer package is available for sale with full back up / support and in house training.

 For further details and an informal discussion


Contact us now !
rcs2012@virginmedia.com

or phone

David or Karen 07765 302901
01257 274595

 

Click for Winter Hill, United Kingdom Forecast

Last updated
01.09.14

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