FAQ's Retention Back - Recovering Your Retention Money

What is Construction Retention?

Construction Retention is the temporary withholding of certified payments for completed Works on construction projects to guarantee performance. A percentage of Retention is withheld from each interim payment by Clients from the Main Contractors and by Main Contractors from Sub-contractors. The retention fund can be used by the beneficiary to remedy defective Works under certain contract conditions.

RetentionBack provides specialist services to identify, track, manage and recover outstanding Retention monies owing that has unduly been withheld by their clients. Our unique Full Retention Management System maintains a live record of your retention payments as they fall due whilst also offering consultancy support services from our dedicated Retention Management Team. Retention Back ensure that our clients’ cashflow is maximised, profits are maintained, disputes are avoided, accounts are reconciled, and vital resources are not wasted. Contact us today by completing our 30 Second Web Form to find out how much your owed and how to get your money back. You really have nothing to lose..

Do you have a Retention Building contract?

How do you know if you have a Retention Building Contract? If retention is being withheld by your client, your payments will be subject to a deduction by the agreed retention percentage. This means that your payments will be less than your submitted claim for Works completed to date. For retention to be with held on a claim, it must be stated in your building contract. The building contract must contain a Retention clause stating the amount of retention to be withheld and the special conditions to secure release. If a retention clause does not exist, your client has no entitlement to deduct retention.

What happens if Retention monies is owed?

If Retention monies is owed and overdue for release on your project, firstly you must establish the reason for late or non-payment. You must establish if there any defects associated with your works? If so, these must be rectified before retention can be paid. Alternatively, if retention is not being released without good cause, then this may be to aid the clients or the main contractors cashflow or indeed to increase their profit margin. In this case the dates for release must be established as you may be entitled to claim interest and late penalty charges. You should contact the team at Retentionback for further advise.

How Does RETENTION Impact On your Business?

The use of retention on construction projects is supported by the retention beneficiary (client) as it aids their cashflow. However, there are several disadvantages for the debtor (contractor) when the agreed contract procedures are not adhered to.

1.)Retention has an adverse effect on the Cashflow of the debtor (contractor).

2.)Retention is often incorrectly applied to early trades on projects which often results in the retention period exceeding 12 months.

3.)Retention is often incorrectly withheld on Labour only contracts.

4.)Retention is often not released at the 1st Moiety Stage (Practical or substantial Completion Certificate)

5.)Retention is often not released at the 2nd Moiety Stage(After Defects Liability Period)

How do I get a company to release the retention in construction?

If you want to get a company to release the retention in construction, you must establish the reason for late or non-payment. You must establish if there any defects associated with your works? If so, these must be rectified before retention can be paid. Alternatively, if retention is not being released without good cause, then this may be to aid the clients or the main contractors cashflow or indeed to increase their profit margin. In this case the dates for release must be established as you may be entitled to claim interest and late penalty charges.

What is Construction retention release letter?

A construction release letter is a project specific legal document prepared by our dedicated Retention Management Team at RetentionBack.T he contract specific release letter and supporting documentation is prepared by our inhouse team of experts and issued to your client on your behalf requesting the swift release of retention. In fulfilling our obligations to our clients, RetentionBack adopt a range of approaches to manage and recover outstanding Retention, depending on the particulars of each individual case. Our priority is to ensure unpaid funds are recovered in full, whilst ensuring positive relations are maintained to promote future business between all parties. Our experienced team take the hassle out of identifying any historic retention accounts your owed and ensure any outstanding money is paid promptly. Contact us today by completing our 30 Second Web Form to find out how much your owed and how to get your money back. You really have nothing to lose..

What is Retention meaning in construction?

Retention meaning in construction is the temporary withholding of certified payments for completed Works on construction projects to guarantee performance. A percentage of Retention is withheld from each interim payment by Clients from the Main Contractors and by Main Contractors from Sub-contractors. This is known as a retention fund which can be used to remedy defective Works under certain conditions. RetentionBack provides specialist services to identify, track, manage and recover outstanding Retention monies owing that has unduly been withheld by their clients. Our unique Full Retention Management System maintains a live record of your retention payments as they fall due whilst also offering consultancy support services from our dedicated Retention Management Team. Retention Back ensure that our clients’ cashflow is maximised, profits are maintained, disputes are avoided, accounts are reconciled, and vital resources are not wasted. Contact us today by completing our 30 Second Web Form to find out how much your owed and how to get your money back. You really have nothing to lose..

What is the Limit of retention in construction?

The limit of retention in construction is the maximum percentage of retention that can be applied on a building project. The maximum percentage is stated in the contract and is usually set at 10% of the original contract sum. The purpose of the limit of retention is to prevent excessive amounts of retention being withheld by a client on a main contractor or sub-contractor on projects where significant variations or cost increases occur. This limit effectively places a cap on retention. RetentionBack provides specialist services to identify, track, manage and recover outstanding Retention monies owing that has unduly been withheld by their clients. Our unique Full Retention Management System maintains a live record of your retention payments as they fall due whilst also offering consultancy support services from our dedicated Retention Management Team. Retention Back ensure that our clients’ cashflow is maximised, profits are maintained, disputes are avoided, accounts are reconciled, and vital resources are not wasted. Contact us today by completing our 30 Second Web Form to find out how much your owed and how to get your money back. You really have nothing to lose..

Retention payment in construction how do I go about getting payment?

If you experience any issues with a retention payment in construction and find yourself asking how do I go about getting payment, you should contact our dedicated Full Retention Management Team at RetentionBack for advice. Our experienced team takes the hassle out of identifying any historic retention accounts your owed and ensure any outstanding money is paid promptly. In fulfilling our obligations to our clients, we adopt a range of approaches to manage and recover outstanding Retention, depending on the particulars of each individual case. Our priority is to ensure unpaid funds are recovered in full, whilst ensuring positive relations are maintained to promote future business between all parties. Contact us today by completing our 30 Second Web Form to find out how much your owed and how to get your money back. You really have nothing to lose..

What Is a Retention fund in construction?

A retention fund in construction is the contractual term used to describe the cumulative amount of retention withheld on a project by a client or main contractor. The retention fund can be used by the beneficiary to remedy defective Work under certain contract conditions. RetentionBack provides specialist services to identify, track, manage and recover outstanding Retention monies owing that has unduly been withheld by their clients. Our unique Full Retention Management System maintains a live record of your retention payments as they fall due whilst also offering consultancy support services from our dedicated Retention Management Team. Retention Back ensure that our clients’ cashflow is maximised, profits are maintained, disputes are avoided, accounts are reconciled, and vital resources are not wasted. Contact us today by completing our 30 Second Web Form to find out how much your owed and how to get your money back. You really have nothing to lose..

What is Building retention?

Building retention is the temporary withholding of certified payments for completed Works on construction projects in order to guarantee performance. A percentage of Retention is withheld from each interim payment by Clients from the Main Contractors and by Main Contractors from Sub-contractors. The retention fund can be used by the beneficiary to remedy defective Work under certain contract conditions. RetentionBack provides specialist services to identify, track, manage and recover outstanding Retention monies owing that has unduly been withheld by their clients. Our unique Full Retention Management System maintains a live record of your retention payments as they fall due whilst also offering consultancy support services from our dedicated Retention Management Team. Retention Back ensure that our clients’ cashflow is maximised, profits are maintained, disputes are avoided, accounts are reconciled, and vital resources are not wasted. Contact us today by completing our 30 Second Web Form to find out how much your owed and how to get your money back. You really have nothing to lose..

What is Contractor retention?

Contractor retention is the temporary withholding of certified payments for completed Works on construction projects to guarantee performance. A percentage of Retention is withheld from each interim payment by Clients from the Main Contractors and by Main Contractors from Sub-contractors. The retention fund can be used by the beneficiary to remedy defective Work under certain contract conditions.

What is the ideal Retention percentage in construction?

The ideal retention percentage in construction will depend on the scale, complexity and value of your project. Depending on the Form of Contract entered into by the parties, the Retention percentage held on building projects can vary. Retention can typically range from 2% on larger projects above 1 million to a maximum of 10% on smaller projects below one million in value. Most contracts will set a limit of construction retention which is the maximum percentage of retention that can be applied on a building project. The maximum percentage is stated in the contract and is usually set at 10% of the original contract sum.

RetentionBack provides specialist services to identify, track, manage and recover outstanding Retention monies owing that has unduly been withheld by their clients. We also provide a Retention Broker Service to act as an intermediary to adjudicate on unpaid retention claims, review and advise on pre &post contract documentation, actively resolve retention related disputes and negotiate on our client’s behalf to bring outstanding retention accounts to successful conclusion. Our unique Full Retention Management System maintains a live record of your retention payments as they fall due whilst also offering consultancy support services from our dedicated Retention Management Team. Retention Back ensure that our clients’ cashflow is maximised, profits are maintained, disputes are avoided, accounts are reconciled, and vital resources are not wasted. Contact us today by completing our 30 Second Web Form to find out how much your owed and how to get your money back. You really have nothing to lose..

Who can help with Retention on construction contracts?

1.)Our services free up your time so you can concentrate on your core business.

2.)Improve your company’s cashflow by ensuring retention is paid on time.

3.)Help to reconcile and close out Historic accounts once and for all.

4.)We act as your independent third-party Retention Broker to negotiate and settle accounts with your supply chain on your behalf.

5.)We offer Inhouse or Independent Retention Service Solutions to suit your business needs.

6.)We operate a No Win, No Fee service therefore we only get paid when you get paid!

Our unique Full Retention Management System maintains a live record of your retention payments as they fall due whilst also offering consultancy support services from our dedicated Retention Management Team. Retention Back ensure that our clients’ cashflow is maximised, profits are maintained, disputes are avoided, accounts are reconciled, and vital resources are not wasted. Contact us today by completing our 30 Second Web Form to find out how much your owed and how to get your money back. You really have nothing to lose..

Retention building contract how long does it take?

A common question we receive from our clients at RetentionBack is how long does it take to receive Retention on a building contract? The answer to this age-old question will usually depend on three key elements as follows; 1)Has your client fulfilled their obligations under the contract?2)Have you performed your obligations under the contract?3)What does the Contract state in relation to Retention? Ifyou have performed your duties satisfactorily in accordance with the contract, then half of the retention withheld should be released upon issue of a completion certificate by the Architect or Engineer when the project reached practical or substantial completion. This is known as the 1stMoiety Release. The balance of retention should typically be released after the Defects Liability Period which is usually between 6 and 24 months after completion and upon issue of the Final or Defect Certificate by the Architect or Engineer. This is known as the 2ndMoiety Release.

Frequently Asked Questions

Quick links

–

Get in touch