A form of security selected by the (sub)contractor as a payment reduction to make good defective work by the (sub)contractor (usually 10% of the (sub)contract sum until 5% of the (sub)contract sum is reached) from the value certified in a Payment Certificate ;

  1. Retention money that is held by the employer (contractor) reduces the contractor’s cash flow; no interest is paid;
  2. The amount of retention money withheld is seldom sufficient to remedy a significant defect;
  3. Generally half the retention amount is released on practical completion, and the remainder on payment of the (sub)contract) final account;
  4. Retention ‘belongs’ to the employer (in English law) until ‘released’ in a payment certificate