Retention
Money withheld under the agreed payment terms as security, with release governed by your contract’s events and conditions.
by Jack Butler-Kettle · About 1 min readShare
Further detail
Read this alongside JCT explanation of retention and bonds in lieu.
Retention holds back part of a payment as contractual security. The percentage, cap and release events need to be checked in the subcontract. Release may depend on certification or other conditions; completion of your own work and completion of the whole project can be different events.
Track the retained amount, cap and release basis for each contract. Our Subcontract payment assessments service reconciles deductions during the job, and our Final account preparation and assessment service supports release applications. Retention recovery addresses an outstanding disputed balance.
Sources
- What’s Wrong with Retention? (JCT explanation of the 2016 forms). The Joint Contracts Tribunal.