Retention
Plain English. Practical detail. UK context.
Retention is money held back under an agreed construction payment arrangement, usually linked to completion or rectification milestones. The amount and release conditions depend on the contract.
Last reviewed: (editorial review against the public sources listed below).
What it means in practice
Check the actual terms before pricing or accepting the work. Identify the basis of the retained amount, the release events, the evidence required and who administers payment. A verbal promise that it will be released “at the end” leaves important questions unanswered.
Track retained sums separately in job records and cash flow planning. Completion of site activity and entitlement to release may involve different contractual steps, so keep the supporting records.
For homeowners
Do not assume that a standard percentage applies to every domestic job. Discuss the proposed arrangement before signing and get appropriate advice where the terms are unclear. Retention is not a substitute for choosing a competent contractor, defining the work or agreeing how defects will be addressed.
Practical checks
Keep the signed terms and the record of completed corrections. If payment is disputed, obtain advice on the actual contract rather than withholding an arbitrary amount based on an online rule of thumb.
Cash flow and evidence need a timetable
A contractor should understand how much is withheld, from which payments, what event triggers release and whether any notice or certificate is required. A homeowner should know what the arrangement is intended to achieve and how it interacts with the agreed defects process. Different contract forms do not necessarily provide the same mechanism. A sensible record links the retained amount to the specific job, expected release milestone and outstanding evidence. Do not silently treat it as a discount or reduce the agreed quality because payment is deferred. Equally, issuing a final invoice does not automatically settle a release condition which the parties have separately agreed.
No universal domestic percentage
JCT publishes different domestic and minor-works contract options; their procedures should not be mixed or paraphrased as one universal rule. Citizens Advice recommends clear payment arrangements and documented responses to unsatisfactory work. The rights and remedies in a payment dispute depend on the actual contract, applicable law and circumstances. Holding money without a contractual or legal basis can create a dispute rather than resolve one. Obtain suitable advice before asserting an automatic right to retain an arbitrary proportion. This entry intentionally gives no standard percentage or release period, and does not substitute for project-specific legal or contract administration advice.
Frequently asked questions
Is retention always required on building work?
No. It depends on the agreement and context. Do not assume that every contract uses retention or that a customary percentage applies to your project.
Can retention replace a defects process?
No. Define how faults are reported, access is arranged and completion is confirmed. Money held back does not itself identify or correct defective work.
Sources and further reading
Public sources and further reading. Sources checked: 8 November 2026. Consult the original for details and later changes.