It is widely accepted in construction that retentions are necessary - but the system is open to abuse. The purpose of a retention is not to improve the employer's cash flow. Consequently a failure to pay is a breach of contract that is properly actionable. Despite this, it is not unusual for contractors/subcontractors to wait for several years before attempting to recover the final portions of outstanding retention monies. In some cases retentions remain unclaimed as contractors consider it to be too costly to pursue.
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