G.R.A. wrote:bluebirdbaz wrote:steve davies wrote:
vale did the internal fit out works within the stadium as laing's only built the stadium to a basic standard
also steve, retention on tthe original contract will be due 12 months after origunal ''practical completion'' of approx 5 % of full construction cost approx 2 million i would say, vince alm can confirm but normally 5 %
work it out for yourselves we are up shitcreek without a paddle
Practical completion would have been certified by now but the retention would be due com June time! 5% of 60m not good! Could be just 2.5% left thou! Still at least 2.5m!!!
The way it normally works is the client retains an amount of money throughout the contract as an insurance against the builder cocking it up etc.
Normally it's 3% or 5%, taken off all payments up to PC. At PC 50% of the retention is released, and then the remaining 50% is released upon issue off the "Certificate of Making Good Defects". Usually this occurs 12 months after PC.
So the club would still have outstanding between £900K and £1.5m.
Another possibility is that the Main Contractor would not accept retention (possible as they would have taken out a financial report on CCFC) and instead would settle for providing a retention bond, which means that the bank of the MC would pay out upon the event of the MC defaulting. This obviously would reduce the risk to Laings of CCFC taking money off them and not paying it back to them on time.