Release of Retention

Question:

When is Retention Monies Released?

Answer:

It is the terms of the contract that will decide what triggers the release. However in general, at Practical Completion of the Project, when the Construction Company is satisfied that all defects have been rectified and the subcontracted scope of works is complete, then 50% of the retention Money withheld to-date on that project will be released to the Subcontractor.

The remaining 50% will be released after the expiration of the Defects Liability period – typically 12 months.

Since there can be a long period of time between these dates, Subcontractors are advised to negotiate at Tender time for the first half to be released when the subcontract works are substantially complete and not on practical completion of the main contract works.

Many small Subcontractors are not in the habit of claiming their Retentions and the Builder applies this as additional contribution to Profits.

How to get your Retention Released:

  1. Apply early
  2. Subcontractors are advised to have a Calendar marked with the dates on which retention should be released (the time of issue of the certificate of completion of making good defects. Mark when to request the release and when to receive payment.
  3. Keep asking
  4. Take action! (A few letters and threats of adjudication or arbitration).
GO BACK TO RETENTION PAGE

Go to Retention

If clients wants to remove retention from now on but you have already created tax invoice, you have to take the current claim's work to date value to last claim, entering the Previous claims figure into work to date column. This will take you to the stage where you were  before making this invoice. Now you can do another claim without retention.

ABOUT MULI | PRIVACY | CONTACT | TERMS OF USE | LINKS | SITE MAP | Creative Commons License