For many contractors and fit-out companies, retention and the final account represent the project's profit. They are also the payments most likely to stall — because they fall due when the project team has moved on and attention has shifted.
Know your release triggers
Most contracts release retention in stages, commonly part on completion or handover and the balance after the defects liability period, subject to conditions such as certificates or the rectification of defects. Read the exact triggers and the documents they require; they differ from contract to contract.
Build the record as you go
- Completion and handover certificates or minutes
- Snag lists and evidence that defects were rectified
- The end date of the defects liability period
- Interim certificates showing retention deducted
- Approved variations and the agreed final account
Agree the final account early
Final accounts stall when variations are left unresolved until the end. Agreeing variations as you go — in writing — shortens the final account and removes the employer's main reason to delay.
Watch the notice clauses
Many contracts require notices within set periods for claims and payment disputes. Missing them can weaken or even bar a claim. Diary every contractual deadline from the day the contract is signed.
When release is refused
Ask in writing for the reason and the contractual basis. If the refusal is not justified, a formal demand supported by your completion and defects records is the next step. Where technical issues are raised, an independent technical review — such as PDC Consult's quantity surveyors provide — can resolve the argument on facts rather than positions.
Protect yourself in the next contract
- Clear, objective release triggers
- A fixed time for releasing retention after each trigger
- The option to replace cash retention with a bank guarantee
- Payment and dispute clauses that work in practice