Construction - Chasing and Releasing Retention

Record the retention percentage, estimated total withheld amount, anticipated practical completion date, DLP duration, and DLP end date in the job record before work begins.

At each interim invoice, confirm the retention deduction is correctly calculated and reflected against the cumulative job cost record.

When practical completion is certified in writing, immediately raise a retention release invoice for 50% of the total withheld amount, referencing the PC certificate date and contract clause.

If the first retention invoice is not paid within agreed terms, issue a written chase with the practical completion certificate attached. Log all communications against the job record.

Track the DLP expiry date. Confirm throughout the DLP that any notified defects are being addressed to avoid deductions from the final retention amount.

When the DLP ends and no outstanding defect notices remain, immediately raise the final retention invoice for the remaining 50% of the withheld amount.

Sync both retention invoices to accounting software and confirm they reconcile against the final account settlement for the project.

Retention amounts sit buried in project records and the practical completion date passes without anyone raising an invoice - money is simply left unclaimed.

The defects liability period end date is never formally recorded at contract stage, so when it expires months later no one knows to issue the final retention invoice.

Sub-contractor retention being held and retention owed by the client are tracked together, making it impossible to know which amounts to chase and from whom.