Retention

Retention is a portion of each payment, commonly around 3 to 5 percent, that the paying party holds back on a construction contract as security. Half is typically released at practical completion, and the remainder at the end of the defects liability period, once any defects have been made good.

It protects the client if work is left incomplete or defective. It also ties up cash for contractors, sometimes for months, which is why tracking what is owed and when it is due to be released matters commercially.