Home › Legal & Housing › Retention Money Release Request

Retention Money Release Request

Retention money — the percentage a client holds back until work proves sound — is your money sitting in someone else's account. This letter formally requests its release now that the defects period has ended, referencing the contract clause and the completion certificates.

Fill in your details

Your Full Name

Your Company Name

Client's Full Name

Client Company Name

Project Reference

Retention Amount

Retention Clause Reference

Practical Completion Date

Your letter

When and how to use this letter

Send this request as soon as the defects liability period expires and all notified defects are cleared — do not wait for the client to remember. Retention sums are frequently "forgotten" in busy accounts departments, and a formal request with the contract clause cited restarts the payment process. Attach the completion certificate and defects-clearance evidence so the release can be approved without internal queries.

Cite the exact contract clause governing release, including the timing trigger. Many contracts release half at practical completion and half after the defects period — check which portion you are claiming and whether any earlier release was already made, so your figure is beyond dispute. Precision here prevents the request from bouncing between the client's commercial and finance teams.

Pre-empt the standard delaying tactic — vague claims of "outstanding defects" — by requiring any objection to be specific and written within seven days. Unspecified withholding after the defects period has expired is difficult for a client to defend, and putting that in the letter discourages it.

A non-obvious tip: check whether your contract provides for interest on late-released retention. Many standard construction contracts do, and mentioning it converts your request from a favor into a liability the client's finance team will want to clear quickly — nobody wants to explain accrued interest on a routine release to their manager.

Frequently asked questions

When is retention money normally released?

According to the contract — commonly half at practical completion and the balance after the defects liability period (often 6 to 12 months) once defects are rectified. Check your specific clause for the trigger event and any conditions, then request release promptly when the conditions are met.

Can the client keep withholding retention for minor defects?

Only for genuine, notified defects, and typically only an amount proportionate to fixing them — not the entire sum. Vague or post-expiry defect claims used to justify holding the full retention are disputable. Demand that any objection be specific, written, and tied to the defects process in the contract.

What if the client ignores my release request?

Follow up once in writing, then escalate through the contract's dispute mechanism — often adjudication or mediation, which is faster than court for construction payment disputes. Interest on late release, where the contract provides for it, strengthens your position considerably.

💬 Comments

Used this template, or have a question about it? Share your experience below — it helps everyone who writes a similar letter.

Retention Money Release Request

Fill in your details

Your letter

When and how to use this letter

Frequently asked questions

Related templates

Advance Payment Recovery Letter

Affidavit for Address Proof Format

Affidavit for Gap in Education

💬 Comments