Resolving retention polarity: the perceptions of structural steel fabricators

Paper


Abeysekera, Vasantha. 2012. "Resolving retention polarity: the perceptions of structural steel fabricators." World Construction Conference 2012: Global Challenges in Construction Industry. Colombo, Sri Lanka 28 - 30 Jun 2012 Colombo, Sri Lanka.
Paper/Presentation Title

Resolving retention polarity: the perceptions of structural steel fabricators

Presentation TypePaper
Authors
AuthorAbeysekera, Vasantha
Journal or Proceedings TitleProceedings, World Construction Conference 2012: Global Challenges in Constrcution Industry
Number of Pages10
Year2012
Place of PublicationColombo, Sri Lanka
ISBN9789554516021
Web Address (URL) of Paperhttps://worldconstructionsymposium.com/
Conference/EventWorld Construction Conference 2012: Global Challenges in Construction Industry
Event Details
World Construction Conference 2012: Global Challenges in Construction Industry
Event Date
28 to end of 30 Jun 2012
Event Location
Colombo, Sri Lanka
Abstract

This study aims to understand the perceived polarity between main contractors and subcontractors with a view to resolving problems connected with retentions in an environment where a sliding-retention regime is utilised with a retention rate of 10% for work below NZ $ 200,000. Eight structural steel subcontractors operating in Auckland were interviewed. Contrary to popular belief, subcontractors are not averse to retentions with most taking a middle ground. Nevertheless, the apparently fair practice of using back-to-back contract terms is not seen as fair and reasonable. Most solutions acceptable to subcontractors impact negatively on contractors’ cash flow highlighting the need for some form of reciprocity from subcontractors (price discounts, improved performance, etc.) to induce contractors to offer favourable retention regimes. This highlights the need for a theory on ‘retention reciprocity’ to supplement the five theories on retentions. However, given that not all contractors can be expected to display reciprocity fairness, an interventionist approach may be necessary in order to neutralise any imbalances in power between the contracting parties possibly through amendments to the Construction Contracts Act, and when doing so, there is a need to exercise much caution as the outcome of chaotic systems could be quite unpredictable.

Keywordsreciprocity, retentions, construction contracts act
ANZSRC Field of Research 2020330299. Building not elsewhere classified
330202. Building construction management and project planning
Public Notes

Published version © Ceylon Institute of Builders - Sri Lanka.

Byline AffiliationsFaculty of Engineering and Surveying
Institution of OriginUniversity of Southern Queensland
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