Canadian Holdback Policies

by J. Darrell Duffie, Asst. Prof. of Civ. Engrg.; Univ. of New Brunswick, Fredericton, New Brunswick, Canada; also on study leave, Dept. of Engrg. Economic Systems, Stanford Univ., Stanford, Calif. 94305,
David E. MacEacheron, Proj. Engr.; Union Gas Ltd., Chatam, Ontario, Canada,

Serial Information: Journal of the Construction Division, 1981, Vol. 107, Issue 1, Pg. 1-7

Document Type: Journal Paper

Abstract: Holdback (or retainage) policies on contract payments place a financial burden upon contractors. A technique for measuring the relative severity of different policies is presented. Holdback policies enforced on Canadian provincial highway construction contracts were surveyed by mail. They were evaluated by simulating their effects on a bank contract earnings data obtained from one province, using an APL program. The key measure used for the severity of holdback policies is the average percentage reduction in the present value of contract payments which they cause.

Subject Headings: Payment | Infrastructure construction | Financial management | Contractors and subcontractors | Surveys (non-geomatic) |

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