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Piling firms stick to 'no retentions'

PILING contractors are defiantly maintaining their 'no retentions' policy, despite a ruling from the Office of Fair Trading.

The Federation of Piling Specialists has been forced by the OFT to drop a resolution banning any of its members from signing contracts containing retentions clauses.

But member companies are vowing to continue individually to snub any contracts involving the reviled practice.

Federation chairman Terry Bolsher said: 'Our members have become used to the right to be paid in full for the work that they have completed and will not return to a situation where payment of 3-5 per cent of their turnover is withheld and at risk.

'The OFT has made it clear that it has not ruled on whether or not members should allow retention; consequently members are free to continue to apply individual 'no retention' policies.'

The OFT ruling has also forced the British Constructional Steel Association and the Precast Flooring Federation to drop their retentions bans.

But both bodies continue to urge their members to avoid retentions.

BCSA director Derek Tordoff said:

'This organisation will always be against retentions.'