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What Is Retention in Public Contracts?
This is a UK procurement term. A portion of payment the buyer holds back until the work is complete or defined conditions are met, common in works contracts.
How does retention work?
The buyer holds back a small percentage of each payment, typically releasing part on completion and the rest after the defects period.
Why do buyers use retention?
As security that the supplier will complete the work and fix any defects.
What should suppliers check?
The percentage held, when it will be released and whether the same terms flow down to subcontractors, as retention affects cash flow.
