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Hide Value Choice in the Retention Agreement

Hide Value Choice in the Retention Agreement and eSign it in minutes

Aug 6th, 2022

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Got questions?

Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

Do you get retention money back?

If you have completed your work in a satisfactory way and corrected any defects that might have occurred, then you should be paid the money that is rightfully yours. If contractors are holding onto part of your retention, then that can represent a docHub proportion of your profits.

How do you write a retention release letter?

Sub: Regarding release of retention money With reference to ourcontract no. 1234 related to Museum Building Construction. Since the project has now been completed, we request you to release the retention money that was paid against the order no. 1155.

How do you release retention money?

Usually, retention monies are released in 2 stages of the project. Release of the first half of the Retention Monies. at the time of issuing the Completion Certificate, The first half of the Retention Monies will be certified and released. Release of the second half of the Retention Monies.

When can retention money be released?

Release of the second half of the Retention Monies In most construction contracts, the Defects Liability period is 12 months which the contractor is liable to complete any defects arise due to the poor workmanship. Upon issuance of Maintenance Certificate, the 2nd half of Retention Money will be released.

How do I claim retention?

To claim your retention money, ensure that you have completed your work to building standards and include the retained amount in your payment claim. It is your right to be paid for the work you have done, as agreed upon in the subcontractor agreement.

What is the JCT clause for retention?

Under the JCT standard form contracts, the first half of the retention is paid when the project is completed, and the second half is paid following the expiration of the defects liability period.

What are the alternatives to retention in construction?

A possible alternative to retention is a retention bond, where the client agrees to pay the amounts which would otherwise have been held as retention, but instead a bond is provided to secure the amount that would have been retained.

What is the treatment of retention money?

Retention payable is recorded by owners and general contractors and is the amount owing to contractors or subcontractors for retention. Since these funds arent due until the project is completed, they are recorded in a separate account on the general ledger.

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