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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 4068
Experience:  Solicitors 2 years plus PQE
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Can the 5% retention I was asked to pay (£10,000 capped) be

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Can the 5% retention I was asked to pay (£10,000 capped) be legally held by the supplier if I wasn’t issued a contract or asked to sign any document relating to it?
JA: Where are you? It matters because laws vary by location.
Customer: Atherton, Manchester M46
JA: What steps have you taken so far?
Customer: None, just a query as we have already paid £10,000 that was supposed to be capped, however now the supplier is soon to issue a contract which will state 5% retention will have to be paid continuously again moving forward
JA: Anything else you want the Lawyer to know before I connect you?
Customer: No, that’s all I think thanks
Customer: replied 12 days ago.
Bit about us: We are a small subcontracting company proving Civils work to a larger company. We have never been issued a formal contract during 18 months doing this. We have worked under very ‘loose’ terms throughout although expected to be compliant and fully responsible for all aspects of works undertaken and performed. I would like to think we could ask for the £10,000 to be reimbursed back to us if the supplier wants us to work under a contract and begin paying 5% retention again as we were told (have a sentence stating this in email) that it would be capped at £10,000.
Customer: replied 12 days ago.
providing Civils work
Thank you for your question and welcome. My name is ***** ***** I will assist you. If the retention is not listed as non refundable then you should be able to re claim it. Do you have anything in writing that details the payment terms of it? Can you send me the terms and conditions?
Kind regards
AJ
Customer: replied 12 days ago.
Hi AJThis is the only thing we have had that sets of terms as such (An email after initial meeting). My partner was direct labour until the meeting and after that, him and myself have been directors of our limited company, subcontracting. Thanks in advance for any advice on this
Thanks. As a starting point you need to send a written demand for a return of the money. Do you have any outstanding invoices you owe them? Kind regards AJ
Customer: replied 11 days ago.
Thanks AJ. We received an email late on yesterday detailing amounts they plan to recover from retention held. This amounts are for fines for defects/incorrect site set up, however most of these are from when my partner was working as direct labour under different term & conditions in 2017/18, so I will be contesting those and plan to arrange payment for any that are fair and that our company is liable for. Would you advise me sorting this before requesting retention back from them? Thanks
Customer: replied 11 days ago.
Other than that, we do not have any outstanding invoices owed to them

Thank you. I think if you do not resolve the issues in advance - they may try and set off the retention. Ultimately they should not offset or counterclaim anything against what you are owed - unless this is in their terms and conditions.Have they refused to repay the money? Kind regards AJ

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