CONSTRUCTION MANAGEMENT | BUILDING & INFRASTRUCTURE WORKS
Retention Release & Recovery for Subcontractors
Chasing Retention for Months? We Get It Released
Retention is meant to be a small safeguard, not a source of ongoing cash flow pain. But in practice, it's one of the most common things subcontractors end up chasing for months, sometimes years, after the work is done.
If you're owed retention that should have been released already, this page covers when it's actually due, why it gets delayed so often, and how to get it paid without waiting indefinitely.
“Richard proved to be extremely knowledgeable and proficient in resolving our financial problem with a prominent, nationwide, but particularly difficult Client. His efficiency in dealing with the situation prevented the exacerbation of further problems, allowing a swift and successful outcome for our Company. We would have no hesitation in recommending his expertise to anyone in a similar situation."
– David Cook. M.D., H. Smith Electrical
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What Retention Is and Why It's Withheld
Retention is a percentage of your contract sum, typically 3 to 5 percent, that the main contractor holds back as security against defects or unfinished work. It's usually released in two stages: half at practical completion, and the rest at the end of the defects liability period once any snagging has been resolved.
In principle it's a reasonable mechanism. In practice, it's very often used as a way to hold onto cash for longer than the contract actually allows.
When Retention Should Be Released
Your contract will set out specific trigger points and timeframes for release, usually tied to practical completion and to the end of the defects period. Once those points are reached and there's no outstanding, notified defect against your work, the retention is due.
If your contract doesn't clearly set out a release date, or if the release date has passed and nothing has been said, that's usually a sign the money should already be with you.
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Why Main Contractors Delay It
There are a few reasons retention drags on, and not all of them are legitimate:
- Genuine outstanding snagging or defects that haven't been resolved yet
- The main contractor's own cash flow problems, using your retention to cover theirs
- Simple administrative neglect, where nobody has actioned the release
- A deliberate tactic, hoping you won't chase it or won't know your rights
It's often difficult to tell which one you're dealing with from the outside, which is exactly why a formal, evidenced chase tends to work better than an informal one.
How to Force Release
A few things make a real difference:
- Get the paper trail in order: contract terms, practical completion date, defects list (if any), and any prior correspondence
- Send a formal written demand referencing the specific contractual trigger and date
- Set a clear deadline for payment
- If that doesn't move things, retention disputes are a valid basis for adjudication, in the same way a non-payment dispute is
Adjudication in particular tends to focus minds. Once a main contractor realises a binding decision is 28 days away, retention that's been sitting unpaid for months has a way of appearing quickly.
Our Retention-Recovery Service
RJH reviews your contract and paperwork, confirms exactly what's due and when it fell due, and handles the correspondence and, where necessary, the adjudication on your behalf.
We've recovered retention for subcontractors who'd been chasing it themselves for well over a year with no success. Fixed-fee and no-win-no-fee arrangements are available, so you know the cost before you commit.
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Start Your Claim
If retention is overdue, the longer it sits, the easier it is for it to be forgotten or deprioritised on the other end. Getting a formal claim moving early is usually the fastest way to see it resolved.
Richard Mole
Arthur Wilby
David Cook
"Our goal is to ensure that you obtain the building work that you want, on time and within budget, without suffering any adverse impact on your business."
- You don’t really understand the construction process and worry about getting it wrong
- You fear that costs for your project might exceed your budget or spiral out of control
- You’re concerned about poor quality work, ‘cowboy builders’, and ultimately not getting the facility which your organisation needs
- You worry there could be an adverse impact on your existing business
- The regulations, red-tape, and risks involved seem like insurmountable barriers
- Design of your construction project (via the selection and appointment of appropriate professionals)
- Planning Permission, Building Regulations, and CDM Regulations
- Quantity Surveying - Costing of the proposed construction works and Cost Management throughout the design and construction processes
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- Advising on and drafting Contracts for the Construction works and for design Consultants.
- Project or Construction Management during the construction phase
- Employer’s Agent role
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The Risks and Pitfalls Associated With Your Construction Project, And How To Overcome Them
- How to navigate the various application, approval and sign‐off processes at the relevant stages of your project.
- Who to turn to for help when it comes to cost planning a project.
- What you need to know to draw up a water-tight contract.
- How to cover yourself when it comes to rectifying defects.