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Does the employer has the right to retain all the retentions after the Contractor's termination or it should be released directly to the contractor?

 

In one of our projects the Employer has terminated the Contractor before finishing the work, and currently I am preparing a report about valuation of work at date of termination. The Employer has a total amount of,, AED as a Retention Money and an amount of9,, AED of  Retention Bond (released in lieu of bank guarantee). I just need to know if is it now the employer's right to retain these retention till the issuance of the completion certificate of the whole work ,or if these retentions should be released to the contractor as he finished the performance of his duties due to the termination?

 

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تم إضافة السؤال من قبل Rula Maaiah , Quantity Surveyor , Mott MacDonald Group
تاريخ النشر: 2018/01/16
Hamidreza seyedalhosseini
من قبل Hamidreza seyedalhosseini , Site Construction Supervisor , sepideh iman civil and renovtion co

it depends on the type of termination if the termination is due to contractor default the retention including the total amount reasonably 

Joel Taer
من قبل Joel Taer , Project Manager Consultant , Riyan Private Limited

It depends on the type of Termination. If the termination is due to Contractor default, the retention including the total amount reasonably earned by the Contractor had a time of termination shall be release only upon expiration of the Period of Maintenance and thereafter all damages incurred by Client in completing the remaining Works will be ascertained and the amount thereof certified by the Engineer. The Contractor shall then be entitle to receive only the sums, if any, as the Engineer may certify would have been payable to the Contractor after deducting the damages or expenses incurred by Client.

If the Termination is due to Client convenient or not due to Contractor's default, then the Client shall indemnify the Contractor and pay the sums reasonably earned by the Contractor at time of termination, the damages incurred by Contractor and the release of retention upon the valuation of Certificate from Engineer. 

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