Q&As

Are you aware of any examples of a contractor bringing adjudication proceedings to recover retention monies due to it?

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Published on LexisPSL on 21/06/2017

The following Construction Q&A provides comprehensive and up to date legal information covering:

  • Are you aware of any examples of a contractor bringing adjudication proceedings to recover retention monies due to it?
  • Examples from caselaw

Retention is the name given to the amount of money the employer retains from interim payments as security for the future performance of the contractor's obligations and to incentivise the contractor to fulfil all of its obligations. For more information, see Practice Note: Retention of payment in construction contracts.

The release of retention to the contractor varies depending on the specific terms of the contract. Commonly, one half of the retention is released at practical completion, and the remainder after rectification of any defects notified during the defects liability period has been completed. Therefore, a contractor may be entitled to claim the release of part or all of the retention where these milestones occur prior to the issue of a final certificate. Depending on the contract, the contractor may also be required to make an application for payment (for the sum of the retention) in order for its entitlement to accrue.

Depending on the particular circumstances, there are various options which may be open to the contractor if reten

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