Wither monetary retentions for subcontract work? A theoretical framework for rationalising its use

Abeysekera, Vasantha (2015) Wither monetary retentions for subcontract work? A theoretical framework for rationalising its use. In: 8th International Conference on Construction in the 21st Century: Changing the Field: Recent Developments for the Future of Engineering and Construction (CITC-8), 27-30 May 2015, Thessaloniki, Greece.

Abstract

Despite advocacy for and against monetary retentions, it continues to be used unabatedly clouded by paradoxes, problems, and pitfalls. In order to lay the foundation to rationalise its use for subcontract work, a model was developed using three concepts, namely, mortgaging future payments, factoring current progress, and generating a level of safety for contractors. Labelled as the LOS model, it supplements and clarifies the notion of retentions and lays the foundation for a framework for rationalising the use of retentions by focussing on three fundamental issues that need to be understood and resolved, namely, 1. Intrinsic issues focusing on ‘do we need retentions for subcontract work’ 2. Quantum issues focusing on the ‘level of safety’ or comfort available for contractors quantified in dollar terms with retentions rates serving as a threshold level, and 3. Operational issues focussing on implementation. It is expected that this framework labelled as IQO will assists in building theory on monetary retentions in the future furthering our understanding on this seemingly simple yet complex construct.


Statistics for USQ ePrint 28676
Statistics for this ePrint Item
Item Type: Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)
Refereed: Yes
Item Status: Live Archive
Additional Information: Copyright © 2015 by CITC-8, Greenville, North Carolina, USA. All rights reserved. No part of this book may be reproduced in any formor by any means without written permission from the editors.
Faculty / Department / School: Current - Faculty of Health, Engineering and Sciences - School of Civil Engineering and Surveying
Date Deposited: 06 May 2016 01:36
Last Modified: 18 Jul 2016 23:24
Uncontrolled Keywords: factoring performance, retentions, monetary retentions, mortgaging payments, subcontracts
Fields of Research : 12 Built Environment and Design > 1202 Building > 120201 Building Construction Management and Project Planning
Socio-Economic Objective: B Economic Development > 87 Construction > 8799 Other Construction > 879999 Construction not elsewhere classified
URI: http://eprints.usq.edu.au/id/eprint/28676

Actions (login required)

View Item Archive Repository Staff Only