Are you ready for the Retentions Regime?
To initially determine if you are ready for the Retentions Regime, you should complete the below calculation at home:
|Lowest bank balance at any point during the month
|Add - other true liquid assets (likely to be zero)
|Deduct - cash security pledged for performance bonds
|Deduct - retentions payable (old plus new)
If your balance is negative, you may not be as prepared as you could be for the Rententions Regime.
Complete the survey below and one of our BDO Construction team will contact you for a confidential, no obligations discussion on your results. Please visit our Real Estate and Construction pages.
1. Is the balance to the above calculation negative?:
2.1 Have you taken out retentions insurance?:
2.2 Is that policy sufficient to cover all of your retentions once all retentions are subject to the new regime?:
3.1 Certain suppliers are entitled to inspect your records at any reasonable time. Are your records ready for inspection?:
3.2 Does your receptionist know exactly what to do when someone asks to inspect those records?:
3.3 Will those records disclose confidential and sensitive information?:
4.1 Does your accounting system record retentions payable within 17 days of receipt of a progress claim?:
4.2 Does your system disclose the date of the underlying contract?:
4.3 Does your system, at any date, provide a print out of retentions payable at the current or any past date?:
4.4 Does that print out separate between retentions payable on contracts prior to and post the new regime?:
5.1 Are all the assets that you are holding in trust for retentions in bank accounts (as compared to elsewhere) and labelled as trust accounts?:
5.2 Are all assets held in trust clearly and permanently labelled as being held in trust (for example a bank account name shows that it is a trust account)?:
6.1 Have you clearly identified those retentions which will need to be released before issuance of a certificate of practical completion or the anniversary thereof?:
6.2 Will all retentions be paid on their legal release date and without deduction or set off?: