Getting your retention back: a subcontractor's guide

Retention is a percentage (often 3% to 5%) held back from each payment as security for defects. It's normally released in two halves: the first at practical completion and the second at the end of the defects or rectification period.

Know your triggers

Your subcontract should say what triggers each release. Since 2011, the Construction Act stops payment being made conditional on performance under another contract, so for most construction contracts a clause tying your retention to the main contract's certificate is likely to be ineffective (section 110(1A)). The exact position depends on your contract wording and the date it was made.

Apply for it

Treat retention release like any other payment: send an application on the right date. The payment notice and pay less notice rules then apply to it, so a payer who wants to keep it against defects needs to give a valid pay less notice in time.

Don't let it slip

The second half often falls due a year or more after you've left site, which is why so much retention is never collected. NotifiedSum records both release dates and emails you before each one.

If retention is overdue, LatePay UK can chase it with statutory interest.