Source: https://www.quantsurv.com/resources/glossary/retention
Content format: Markdown version of the public page.
Content reviewed: 2026-09-30

# Retention: definition and example

Money withheld under the agreed payment terms as security, with release governed by your subcontract’s events and conditions.

By [Jack Butler-Kettle](<https://www.quantsurv.com/about#who-we-are>) · Updated 30 September 2026

Guidance for England and Wales. Check the contract, amendments and facts that apply to your job.

## What it means in practice

Read this alongside [JCT explanation of retention and bonds in lieu](<https://corporate.jctltd.co.uk/whats-wrong-with-retention/>).

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 each retained amount and its release basis. [Retention recovery](<https://www.quantsurv.com/retention/services/retention-recovery>) can help establish the balance and evidence supporting a release request.

## Worked example

### The facts

An illustrative subcontract retains 5% of £40,000, leaving £2,000 held back.

### What happens

1.  Its assumed terms release half at a specified completion event.
    
2.  The subcontractor checks that event and requests the relevant £1,000 with supporting evidence.
    

### What this shows

The figures explain the mechanism; actual percentages and release conditions must come from the relevant agreement.

## Sources

1.  [What’s Wrong with Retention? (JCT explanation of the 2016 forms)](<https://corporate.jctltd.co.uk/whats-wrong-with-retention/>). The Joint Contracts Tribunal.