Retention on jobs for new client

[J.C.E]

Evening all
I have been asked if I would be happy to accept a 5% retention clause for 6months on a quote I have sent for some work I have quoted for.

The company (builders) have 13 years records on company house

the 5% would be around 400quid+vat so not a massive amount

I have said I would prefer not to have a retention as I am only a small company and I offer a 6year NICEIC platinum promise guarantee anyway. and state on my quote- certs to follow after full payment- so this would mean I would have to issue the certs and wait 6months for the final payment or they would have to wait for the certs for 6months

any advise tips?

cheers

 

[Welchyboy1]

How much do you want the work or the potential future work from this client, have you already put in a price for the tender? If not just add £400+vat on top of what you want for the job, thats what i do

 

[Toneyz]

I thought it was usually a year for retention. How well is your knowledge of the building company?

 

[Welchyboy1]

Sorry just read you have already sent quote off, really they should state any conditions of payment before you provide quote.

If it sounds like a good number then just do it and in future add your 5% on top of quotes and treat it like a bonus 6 months later

 

[John Preston]

If they've asked you rather than demand it then offer them 2.5% instead.

 

[Pete999]

Evening all
I have been asked if I would be happy to accept a 5% retention clause for 6months on a quote I have sent for some work I have quoted for.

The company (builders) have 13 years records on company house

the 5% would be around 400quid+vat so not a massive amount

I have said I would prefer not to have a retention as I am only a small company and I offer a 6year NICEIC platinum promise guarantee anyway. and state on my quote- certs to follow after full payment- so this would mean I would have to issue the certs and wait 6months for the final payment or they would have to wait for the certs for 6months

any advise tips?

cheers

IMO Job not complete until it's been certified and certificates issued. So it you haven't issued the certificates, why should they pay?

 

[Toneyz]

IMO Job not complete until it's been certified and certificates issued. So it you haven't issued the certificates, why should they pay?

???????????????????????

 

[Pete999]

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??????????????????????????????????????????????????????????????????????????????????????????????? If you were having your car MOTd would you pay without the MOT Certificate???????????????????????????????????, Doubtful.

 

[Toneyz]

What has the certification got to do with a building company holding back retention? I think that you have misinterpreted the post, Pete.

 

[Pete999]

What has the certification got to do with a building company holding back retention? I think that you have misinterpreted the post, Pete.

Well you questioned my post 6 Ant, so rightly or wrongly I took it that you were questioning my statement "why should they pay", sorry if wires got crossed.

 

[Deleted account]

If it's a request. Respectfully decline. They will probably still,use you. There is no shortage of work out there even if they don't.

 

[Nigel]

Add the financial risk to your quote.

5% is a pretty standard percentage.