Release of Retention money

Retention money is a portion of the payment (usually 5-10%) withheld by the client or employer from the contractor or supplier’s billings until the completion of the project or fulfillment of contractual obligations. Release of Retention Money: 

• Typically released after successful completion of the project or contract.
• Client or employer verifies satisfactory performance, quality, and compliance with terms.
• Contractor or supplier submits a request for release of retention money.
• Client or employer releases retention money, usually in installments (e.g., 50% after completion, 50% after defect liability period).

Conditions for Release: 

• Completion of project or contract.
• Satisfactory performance and quality.
• Compliance with contractual obligations.
• No pending disputes or claims.
• Defect liability period (if applicable) has expired.

Note:

• Retention money release terms vary depending on the contract or agreement.
• Ensure clear understanding of retention money terms to avoid disputes.