An Overview of Payment (Part 4) Fluctuations and Retention
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The aim of this course is to explain the key payment rights and obligations under construction contracts and explain how these principles are applied in practice. This course provides some examples on how fluctuation and retention mechanisms work under JCT, FIDIC and NEC forms of contract.
After studying this course, you should be able to;
1. Discuss how the purpose of a fluctuations clause is to provide a mechanism for reimbursing contractors for changes in input prices over which they have no control.
2. Explain what retention money is, nature and purpose of retention, retention bonds and guarantees, and the status and treatment of the retention.