Construction - chasing and releasing retention

Step by step

1. Log retention terms at contract stageJobs

   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.

2. Track deductions at each interim invoiceInvoices

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

3. Raise first retention invoice at practical completionInvoices

   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.

4. Chase first retention paymentMentions

   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.

5. Monitor the defects liability periodProject Tracking

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

6. Raise final retention invoice at DLP endInvoices

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

7. Reconcile in accountingXero

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