Legally prohibit retention clauses in construction contracts.

Background

We want legislative change to prohibit retention clauses in construction contracts. I believe making such retention practices unlawful can create a fairer marketplace where contractors are paid in full and on time, removing the financial burden and uncertainty that I feel plagues the industry.

Additional details

In my work as a construction dispute resolution professional, I have seen first-hand how retention clauses in construction contracts can be exploited. I see these clauses being misused to withhold payment from contractors for unsubstantiated reasons. Retention clauses are intended to ensure the quality of work by holding back a portion of payment, but in my experience have become tools for larger companies to exert undue pressure on smaller contractors.

Where it’s popular

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