Delays in retention payments continue to place pressure on cash flow and quality assurance across heritage construction projects.
Recent research highlights that over half of construction professionals have faced delays in retention releases or final account settlements within the past year. This issue is particularly pertinent in the management of listed buildings and heritage projects across London, Greater London, and the Home Counties, where meticulous quality control and cash flow management are critical.
The delays stem partly from fragmented communication between site teams, commercial departments and finance, leading to unreliable live data on project margins and costs. For heritage projects, where compliance with stringent safety and quality standards is essential, these administrative inefficiencies can hinder timely decision-making and risk compromising defect rectification processes.
Government reforms banning retention payments aim to improve cash flow for smaller contractors but present challenges in heritage work, where retention has traditionally ensured that defects are addressed post-completion. Without retention, the risk increases that contractors may be less incentivised to return for necessary remedial works, potentially impacting the long-term preservation of listed structures.
Effective construction management in this environment requires robust systems that maintain clear, real-time records linking site activity with financial reporting. This transparency supports prompt payment processing and helps safeguard quality standards. Atico Solutions recognises that integrating comprehensive project data and fostering close collaboration between all stakeholders is vital to navigating these evolving payment practices while preserving the integrity of heritage construction projects.
Source: Planning, Building & Construction Today
Led by Trevor Read and Dillan Gandhi, Atico Solutions is a high-end construction management and procurement company. Learn more here.