Renovation - how much to retain for snagging?

sarkozy

We're coming to the end of our renovation. What is typical percentage to hold on to until after the job is finished and snagging done?

The builder says 2%, I'm more thinking somewhere between 5-10%.

4Sticks

0% if not agreed at the beginning.

kkelliher

sarkozy wrote: »

We're coming to the end of our renovation. What is typical percentage to hold on to until after the job is finished and snagging done?

The builder says 2%, I'm more thinking somewhere between 5-10%.

what was included in the contract. Generally if you agree a 5% retention for the project you reduce it to 2.5% at practical completion and hold the 2.5% until all snagging is completed and signed off

Victor

There is a table of recommended percentages, but I don't have a copy.

What is the contract value?

sarkozy

With variations since agreement, the 40k mark.

Drift

On most of our projects (using GCCC) the retention amounts are as follows:

Under 200k - 10%
Between 200k and 3m - Sliding scale 10% - 3%
Over 3m - 3%

BUT half of the retention is paid at substantial completion. So the effective retention for the defects period varies between 5% and 1.5%

P.S. I'm not sure if these amounts are only guideline or if they are mandatory on GCCC and I have no idea what the guideline RIAI retention amounts are.

RITwing

sarkozy wrote: »

We're coming to the end of our renovation. What is typical percentage to hold on to until after the job is finished and snagging done?

The builder says 2%, I'm more thinking somewhere between 5-10%.

What is in your contract ? What did you agree to in writing.

kkelliher

RITwing wrote: »

What is in your contract ? What did you agree to in writing.

does not have to be in writing but it always helps your case..........

4Sticks

sarkozy wrote: »

We're coming to the end of our renovation.

The builder says 2%, I'm more thinking somewhere between 5-10%.

Kinda late in the day - no ? the contractor was entitled to know your "thoughts" at tender.

And what period of retention are you considering?

galwaytt

kkelliher wrote: »

does not have to be in writing but it always helps your case..........

if it's not in the contract (writing) then there is no retention.

kkelliher

galwaytt wrote: »

if it's not in the contract (writing) then there is no retention.

not correct. many contracts are verbal and are a collation of documents, emails and understandings. i would go so far as to say that most domestic projects in ireland dont have a written contract and yet are completed without issue. i must point out that i believe you should have a contract on every job as its the only clear manner of record.

fash

Agreed: no written contract stating retention, no retention.
Thus presuming this is the case, I'd take the contractor's 2% and be happy...

4Sticks

What would you be advising the contractor if he was your client kk?

4Sticks

kkelliher wrote: »

not correct. many contracts are verbal and are a collation of documents, emails and understandings.

The OP must not have anything in his/her collation so or s/he would not be posting here. The OP cannot simply impose a condition now that cannot be demonstrated as understood at the start.

4Sticks

Furthermore if even one progress payment has been made so far and it is not accompanied with a statement indicating a retention deduction then that would present as evidence that the employer has accepted there is 0% retention. It is the standard to practice to deduct retentions all along and return half of all retentions at completion. If the OP cannot demonstrate that this is/has been happening s/he is on shaky ground you can't "spring" retention at the end.

galwaytt

kkelliher wrote: »

not correct. many contracts are verbal and are a collation of documents, emails and understandings. i would go so far as to say that most domestic projects in ireland dont have a written contract and yet are completed without issue. i must point out that i believe you should have a contract on every job as its the only clear manner of record.

agreed. What I wrote is on the assumption that it wasn't agreed in any form, which is what OP is telling us.

kkelliher

4Sticks wrote: »

The OP must not have anything in his/her collation so or s/he would not be posting here. The OP cannot simply impose a condition now that cannot be demonstrated as understood at the start.

completely agreed but my point was the general rule that it does not have to be a written contract. retention could be mentioned in an initial tender letter for example and this would therefore be implied but not actually part of an actual contract or it could have being agreed pre start at a meeting.

kkelliher

4Sticks wrote: »

What would you be advising the contractor if he was your client kk?

based on the fact there appears to be no agreement (given OP has not stated it was ever discussed) I would advise him that no retention shoul be held.