As the construction industry continues to evolve, the need for efficient and effective employee retention strategies has never been greater. This is especially true for civil engineers, who require world-class technical skills and ongoing training to stay competitive in the ever-changing construction industry.
In this blog article, we explore the key factors that contribute to employee retention in the construction industry, with a particular focus on civil engineers. We'll also look at best practices for measuring and improving job satisfaction for construction professionals.
What is construction retention?
Retention is a partial amount that is deducted from the amount owed by the client and confirmed as owed to the contractor in a provisional certificate. In general, the amount withheld at source is approximately 5% of each interim payment. The purpose of retention is to ensure that the contractor properly performs the tasks specified in the contract.
If the contractor does not complete the work in accordance with the agreed contract, the client may request the retention of the unfinished or defective work after the project is completed. The contractor may be required to correct the defects. If the contractor does not correct the defects, the client may request retention of construction costs.
When will the retainage be released to the contractor?
The amount deducted from each invoice becomes significant when compared to the total contract value. It is a significant amount of money if the contract value is very high.
Generally, 50% of the retention amount may be paid to the contractor upon practical completion of the work. This is done according to the conditions agreed in the contract. In some contracts, payment of retention may be made at the end of the defects liability period.
This means that 50% can be released upon practical completion of the project and the remainder at the end of the defects liability period. In some cases, 100% of the retainage will be released to the contractor if the contractor provides a guarantee acceptable to the client.
All these methods are based on the Contract terms are stated in the contract documents.
Some other aspects
It's no secret that the construction industry is an extremely competitive environment. Employers are constantly looking for ways to save costs and increase efficiency. This means that employees must constantly educate themselves and adapt to new technologies and methods.
Retention is particularly important for civil engineers because they play a crucial role in the construction process. From design and planning to project implementation and management, civil engineers are responsible for ensuring that construction projects are completed on time, within budget and with the required quality. Therefore, they require in-depth knowledge of construction methods and techniques as well as strong problem-solving skills.
