Retention in Construction | Brief Overview
As the construction industry continues to evolve, the need for efficient and effective employee retention strategies has never been greater. This is especially true for civil engineers, who require top-notch technical skills and ongoing training to remain competitive in the ever-changing construction industry.
In this blog article, we will explore the key factors contributing to employee retention in construction industry, with a particular focus on civil engineers. We will also look at best practices to measure and improve job satisfaction among construction professionals.
What is Retention in Construction
Retention is a portion of the sum taken from the amount owed and held by the customer and confirmed as owing to the contractor on an interim certificate. In general, the retention is about 5% of each interim payment. The goal of retention is to make sure the contractor correctly completes the tasks specified in the contract.
If the contractor does not complete the work as per the agreed contract, after the project, the employer can claim the retention for the incomplete work or the defective work. The contractor can be asked to rectify the defects, in the case of the contractor failing to attend to rectify the defects, the employer can claim the retention in construction.
When Retention is Release to Contractor
The amount deducted from each bill becomes significant when consider with the total contract sum. It is a significant amount of money when the contract sump very high.
In general, 50% of the retention could be released to the contractor at the practical completion of the work. This shall be as per the agreed terms in the contract. In some contracts, the release of the retention may be at the end of the defect liability period.
Thus, 50% may be released at the practical completion of the project and the rest will be released at the end of the defect liability period. In some cases, 100% of the retention is released to the contractor when he produces some kind of guarantee acceptable to the employer.
All these methods are based on the conditions of contracts given in the contract documents.
Some Other Aspects
It is no secret that the construction industry is a highly competitive landscape. Employers are always looking for ways to save costs and increase efficiency, which means that employees must continuously upskill and adapt to new technologies and methods.
When it comes to civil engineers, retention is especially important given the critical role they play in the construction process. From designing and planning to implementation and project management, civil engineers are responsible for ensuring that construction projects are completed on time, within budget, and to the required standard. As such, they require a deep understanding of construction methods and techniques, as well as strong problem-solving skills.
