Retention Money Not Released? How to Get It Back
The short answer
Find the release trigger in your subcontract, check the date has passed and ask in writing with the sums and dates. Still unpaid? Escalate on a timetable; the planned retention ban is not law yet.
- Today: find the trigger. Retention %, release events, the practical completion date and the end of the defects period.
- Ask in writing, with numbers. Contract, sum held, release event, date it happened and the sum now due.
- Escalate on a timetable. Request, reminder at 7 days, application or invoice, then advice on adjudication.
- The ban is coming, not here. Until the Commercial Payments Bill is law and in force, your retention clause still applies.
Practical completion was 14 months ago. The defects period has ended. Your retention money is still not released. The 5% you've been owed since the job finished sits in the main contractor's account, and your emails get "I'll look into it."
For a subcontractor, retention is often the profit on the whole job. This guide covers how UK subcontractors get it released. It covers the triggers, the letter to send and how to escalate. It also covers what to do if the main contractor has gone bust and what the planned ban means.
Owed retention on several jobs? Book a free strategy call.
This is general information from a contractor's experience, not legal or financial advice. For your situation, speak to a solicitor or accountant.
The next 24 hours: find the trigger
Get the subcontract out, and the main contractor's payment notices. You need five facts before you send anything.
- Retention %: what's held from each payment.
- Release events: usually practical completion (or your section's completion) for the first half and the end of the defects period for the second.
- Dates: when practical completion happened, when the defects period ended.
- Sums: total held to date, what's due now.
- Conditions: anything about defects being made good, or a certificate.
Then put it in a retention log, one line per job. Most subcontractors who lose retention don't lose an argument; they just forget the date.
| Job | Main contractor | Sum held | Release 1 (event, date, sum) | Release 2 (event, date, sum) | Requested | Paid |
|---|---|---|---|---|---|---|
| Example: office fit-out, E1 | [Name] Ltd | £6,200 | PC 3 Mar, £3,100 | Defects end 3 Mar next year, £3,100 |
Why retention money is not released: how it normally works
Retention is money held back from each payment as security against defects. On UK work, around 5% is typical, and often 3% on larger projects. It usually comes back in two halves.
| Stage | Usual trigger | What to check |
|---|---|---|
| First half | Practical completion of the works (or your section) | The date the main contractor or client accepted completion |
| Second half | End of the defects period, commonly 12 months, once defects are made good | That any snags you were told about are signed off |
| If the job never completes | Depends on your subcontract | Whether there's a long-stop date for release |
Accepting "we'll release it when the client releases ours." Does your subcontract tie your money to the main contractor's own certificate? Take advice: since 2011 the Construction Act has restricted clauses that make payment depend on another contract.
Problems like this usually trace back to cash and contracts. The free 4-minute Construction Business Scorecard shows your weakest area first.
Day 1: the request letter
Send it by email to the person who signs off payments, and copy the commercial manager. Keep it factual.
Subject: Release of retention, [project], [your company]
Dear [name],
Under our subcontract dated [date] for [works] at [project], you hold retention of £[total], at [x]%.
[Practical completion / The end of the defects period] took place on [date]. Under clause [x], £[sum] of the retention became due for release on [date]. [All notified defects were made good on [date].]
Please confirm by [date, 7 days from now] when this payment will be made. I attach our account showing the retention held.
Kind regards, [Name, company, phone]
Does the subcontract say you apply for payment? Then send an application or invoice for the retention sum, on the dates your payment terms set. That puts it into the normal payment and notice cycle.
Retention stuck on more than one job?
Book a free call and we'll go through your log and the next steps with you.
Days 7 to 28: escalate on a timetable
| When | What you do |
|---|---|
| Day 0 | Request letter sent (above) |
| Day 7 | Reminder: "Please confirm the payment date for the retention requested on [date]." Phone call the same day |
| Day 14 | Apply or invoice for the sum if you haven't. Ask for the reason in writing if they say defects are outstanding |
| Day 21 | Final letter: you'll take advice on referring the dispute to adjudication if not paid by [date] |
| Day 28 | Speak to a construction solicitor or claims consultant about adjudication |
- Adjudication: a party to a construction contract can give notice of adjudication at any time. The adjudicator's decision is due within 28 days of referral (it can be extended) and is binding until the dispute is finally settled.
- Interest: if your subcontract has no interest clause of its own, statutory interest (8% over base rate) can apply to late business payments. Check with your adviser.
- Time limit: on most contracts you have 6 years from when the money was due to bring a claim. Don't wait that long, but don't give up on old retentions either.
Weighing adjudication against cost? Our article on a main contractor not paying compares the routes and when each is worth it.
If the main contractor has gone bust
Move fast. Retention owed by an insolvent company is usually an unsecured debt, which means you queue with other creditors. The full first-week plan: main contractor gone into administration.
- Find the insolvency practitioner on the company's Companies House page.
- Register as a creditor. For more than £1,000 you need a Proof of Debt form; for less, send your details and the sum.
- Send your evidence: subcontract, retention log, completion dates, payment notices.
- Trust money: if your contract said the retention was held in trust or a separate account, say so in your claim and take advice quickly.
- Expect little. Payment isn't guaranteed. This is why the next section matters.
Next time: negotiate it down before you sign
The cheapest retention to recover is the one you never agreed to. Before signing a subcontract, ask for:
| Ask | Why it helps |
|---|---|
| A lower percentage, or a cap on the total | Less of your profit sits in someone else's bank |
| Half released at your own completion, not the whole project's | First-floor trades don't wait for the roofers |
| A fixed long-stop date for the second half | Release can't drift if the main project is late |
| A retention bond instead of cash | Your cash stays in your account |
| Written confirmation that release isn't tied to the main contract | Your money doesn't depend on someone else's dispute |
Retention usually follows the final account, so close that first: see how to agree a final account. Craftex runs subcontract packages as a main contractor. Our commercial management service handles subcontract set-up, final accounts and retention for clients, with claims prepared where they're owed money. Want us to look at yours? Book a free strategy call.
The 2026 retention ban: what's actually happening
The government plans a full ban on cash retentions in construction contracts, through the Commercial Payments Bill. On 17 October 2026 the Bill is still in the House of Lords (third reading is scheduled for 20 October) and hasn't become law. Our retention ban guide has the latest status and the full timeline.
As reported in the trade press, the Bill gives a two-year transition in which retention clauses can still be agreed. Then a one-year run-off follows before existing clauses stop having effect. The clock only starts when ministers bring those provisions into force.
- Today: your current retention clause still applies. Chase it the normal way.
- When the Bill passes: watch for the commencement date. That starts the transition.
- After the transition: retained sums still unpaid become due under the Construction Act payment rules.
More on keeping cash in the business while you wait: our cash flow guide.
The Cash Flow & Margin Blueprint
The 4-week cash forecast, stage payments and the 5 numbers to check every Friday, retentions included.
Get the free guideWant every retention, variation and final account collected on time?
Book a free strategy call.
Your retention checklist
This is general information from a contractor's experience, not legal or financial advice. For your situation, speak to a solicitor or accountant.
Before you go
- Retention log set up: every job, sum, release events and dates
- Request letter sent for every retention now due
- Reminder, application and final letter dates in your diary
- Insolvent main contractor? Claim registered with the IP
- Next subcontract: lower %, own-completion release, long-stop date
