The Balance After Completion: Recovering Retention with Paper, Not Pressure

Retention is one of the few sums in a trade contract that a firm can earn twice: once on site, and once again by remembering to ask for it. It is agreed in the calm of tender stage and then forgotten in the rush of the final account. For many smaller UK trade firms, five per cent of a contract is not a rounding error. It is a van payment, a quarter's insurance, or the difference between a comfortable January and a tight one. Yet the money is often left to sit because chasing it feels like picking a fight with a client who may have more work to offer.

It need not. Recovering retention is mostly administration: record the terms, diary the dates, keep the completion file in one place, and send a short, well-papered reminder when the date falls due. The approach below is deliberately unglamorous. It treats retention as a process rather than a grievance.

Before the first invoice: capture the clause

Most retention disputes start with a vague memory of what was agreed. A director recalls that it was 'the usual five per cent', but cannot say whether half was released at practical completion, how long the defects period runs, or who is responsible for certifying release.

Open a one-page retention ledger for every project. It should record the contract sum, the retention percentage, the basis of deduction, whether part is released at practical completion, the length of the defects period, the person or body responsible for certifying release, any notice period, and what the final account must contain. If you are a subcontractor, check the subcontract and any letter of intent rather than assuming the main contract terms apply. If something is unclear, ask before signature. It is far easier to clarify a clause at tender stage than to argue about it eighteen months later.

At practical completion: start the clock properly

Practical completion is a trigger, not a mood. Record the date of the practical completion certificate or written confirmation from the client. If the client is slow to certify, send a short notice confirming that the works are complete and asking for the certificate. That notice may feel unnecessary at the time; it becomes valuable evidence when the release date is disputed.

Diarise two dates: the half-release date, where applicable, and the end of the defects period. Put reminders in the calendar thirty days before each. A reminder that appears while there is still time to prepare a pack is worth more than a note that appears on the day payment was expected.

The completion pack that does the arguing for you

When the release date arrives, attach a single PDF with an index page. Include the contract extract showing the retention clause, the practical completion certificate or written confirmation, the snag list and sign-off, the final invoice, a retention statement, and any instruction or variation that affects the final sum. Keep the covering email to five lines: project name, amount claimed, due date, documents attached, and the payment date requested.

The aim is to make the client's finance team say yes without needing to email anyone. A clear pack also protects the relationship. It says that the firm is organised, not aggressive.

A three-step reminder sequence

Day zero: send a polite email to the named project contact and to accounts payable. Put the project name and 'retention release' in the subject line. Ask for confirmation of receipt and an expected payment date.

Day fourteen: follow up by telephone, then send a short email summarising the call. Ask whether anything is missing from the pack. This is not escalation; it is customer service.

Day thirty: send a formal but neutral letter to the client's finance lead, copied to the project contact. Restate the amount, the due date and the documents provided. Ask for a payment date or a written reason for the hold. Avoid adjectives. The facts are enough.

If the client raises a genuine defect, deal with it commercially and document the resolution. A real snag is not a reason to write off the retention; it is a reason to close the snag and re-send the release request.

When the client is slow rather than hostile

Many delays are administrative. The invoice may be sitting in the wrong purchase ledger, or the person who certified completion may have left. Ask for the purchase order or ledger reference, confirm bank details, and offer to reconcile statements. Keep a note of who said what and when. A calm paper trail is more persuasive than a series of increasingly frustrated phone calls.

Escalation in proportion to the sum

If reminders fail, consider a pre-action letter or adjudication only where the sum justifies the cost and disruption. For a smaller retention, a well-drafted letter before claim may be sufficient. Take advice before issuing proceedings. The point is not to threaten. The point is to show that the file is complete and the firm is organised.

The monthly retention review

Once a month, list every project where retention is still held. Record the amount, the due date, the last contact and the next action. Ten minutes with that list prevents the quiet write-off that so often happens when a job is finished and the team has moved on.

Retention is not a tip. It is part of the price. Recover it with paper, not pressure, and the client relationship can survive the request.