Retention & getting paid
The slice of every claim held back as security — stored in basis points, released half at TOP and half at DLP end.
Retention is the portion of each payment the client holds back as security against defects. You earn it, but you don't get it until the job proves itself. Understanding how it accrues and releases is core to managing a project's cash.
How it's stored
Retention is held as a rate in basis points on the project. 500 basis
points means 5.00%. It's never stored as a plain percentage — always bps.
The rate is applied to the contract value, up to a cap, and deducted automatically on each progress claim. You don't calculate it by hand; the system does, using the project's rate.
How it releases
Retention comes back in two halves:
- 50% at TOP — when the Temporary Occupation Permit is obtained and the project reaches Handover / TOP.
- 50% at DLP end — when the Defects Liability Period closes and outstanding defects are cleared.
Why a PM cares
- It's real money held back. On a sizeable contract, 5% retained is a meaningful sum. Closing out handover and the DLP cleanly is how you release it.
- Defects delay release. Unresolved defects at DLP end hold up the final retention. Keep the defect record tight so you can show the works are sound.
All money in the system is held internally in cents as whole numbers — never fractions of a cent. What you see on screen is always in dollars; the system handles the conversion. You never need to think in cents, but it's why figures always reconcile exactly.