Money from jobs finished two years ago
Every application on a subcontract painting package has had retention deducted. Across dozens of packages over several years, that is money you earned and have not been paid. Half is usually due at practical completion and the rest after the defects period, depending on the subcontract. Nobody in the office is tracking when those dates fell.
When the owner finally goes through the old jobs, some main contractors have changed their accounts staff, one has gone into administration, and others say the defects period has not ended because another trade's defects are outstanding.
Why retention slips away
Retention is released by events, not dates, and the events happen long after your painters have left site. Practical completion is declared by the main contractor, often without telling subcontractors. The defects period runs from a date nobody wrote down. And applying for release is an admin task with no deadline pressure.
- Retention deducted is not totalled per package.
- Practical completion dates are not recorded.
- Defects periods and release terms are in the subcontract, not a system.
- Nobody owns asking for release.
- Defect call-backs are not recorded, so disputes about outstanding defects cannot be answered.
What your subcontract says about retention, and what options you have if it is not paid, are for your adviser. The ledger makes sure you know what is held and when to ask.
What forgotten retention costs
It is money you earned and are not receiving, sitting in other businesses' accounts. Over years it can become a large sum. The longer it is left, the harder it is to recover, as staff change and records get lost. And if a main contractor fails, retention is at risk.
Retention also distorts how profitable old jobs look. On paper the package made a margin. In practice, part of that margin is still sitting with the main contractor, and until it is paid the job has not finished making money. Knowing the total held across all packages changes how you think about taking on more work from the same contractors.
The retention ledger we build
- Every application and payment records the retention deducted, so the total held is known per package.
- Each package records the release terms you enter from the subcontract, such as the share released at practical completion and at the end of the defects period.
- Practical completion and other release events are recorded when they happen, prompted by a check-in with the main contractor when a job is due to finish.
- Release dates are calculated, and the office is reminded to apply for release in good time, with the application drafted from the ledger.
- Defect call-backs on each package are recorded with dates and photos, so you can show your defects were dealt with.
- A summary shows total retention held, due for release, and overdue, by main contractor.
| Package | Tracked |
|---|---|
| Retention held | Total from applications |
| Release events | Practical completion, end of defects |
| Release dates | Calculated from your terms |
| Defects | Call-backs with dates and photos |
| Status | Held, due, applied for, received |
The ledger in use
The office knows how much retention is held and on which jobs. Release applications go out on time, with evidence that your defects were dealt with. Overdue retention is visible and chased. And when you are deciding whether to price for a main contractor again, you can see how they have paid retention before.
Signs retention is slipping away
- You do not know the total retention held.
- Practical completion dates are not recorded.
- You have not applied for release on older jobs.
- Main contractors say defects are outstanding and you cannot show otherwise.
- You found retention on a job that is now very hard to recover.