Retention Release & Underpayment — Recovering Money Withheld Without Good Reason

Retention is one of the most disputed areas in construction, and the industry's track record of paying it out fairly is poor. If you are a contractor or sub-contractor who has completed your works — or reached the relevant defects liability milestone — and the client or main contractor is holding back retention without proper justification, I can help you get it released. Retention disputes are among the most common reasons construction businesses suffer cash flow problems, and I take them seriously because the cumulative impact across a project can be significant. I handle retention disputes under all standard forms of contract as well as bespoke agreements. The first step is to identify whether proper pay-less notices were served in accordance with the contract's notification requirements. Many withholdings are technically invalid because the paying party failed to follow the correct procedure — and an invalid pay-less notice means the full sum applied for is due. I analyse the payment and notification history in detail to identify those grounds before advising on the right enforcement route. Adjudication is almost always the fastest and most cost-effective route for retention disputes because the factual matrix is usually straightforward — the question is whether the withholding was properly notified, not whether the works were defective. I draft referral notices for retention adjudications regularly and have a strong track record in getting awards made quickly. Where the amount is smaller, I also advise on county court money claims and statutory demand procedures as alternatives. How It Works 1. Payment and notification history reviewed 2. Invalid pay-less notice grounds identified and assessed 3. Formal written demand with adjudication notice enclosed 4. Referral to adjudication if demand not met 5. Enforcement of adjudicator's award if payment not made What You Get - Payment notice analysis and entitlement assessment - Written demand letter - Adjudication referral and conduct - Enforcement proceedings if award ignored FAQ Q: What counts as a valid pay-less notice? A: The contract specifies the required notice period and content. Typically the paying party must specify the sum they intend to pay and the basis of calculation. A generic withholding letter is rarely sufficient. Q: Can I claim interest on late retention payments? A: Yes. Under the Late Payment of Commercial Debts Act, you are entitled to statutory interest at 8% over base rate plus debt recovery costs on late commercial payments. Q: What if the retention is being withheld for alleged defects? A: That is a common tactic. I assess whether any alleged defects are genuine, properly notified, and of a value that justifies the withholding — often they are not.