usual retention amount & timescale

touchdown77

Whats the usual retention percentage and timescale for a house build by contractor, is it 5% for 12 months?

kkelliher

Retention works on an interim deduction for the period of construction up to the point of practical completion - usually 10% on domestic works but it is subject to agreement and I have seen anything from 5% to 12% used. At practical completion this figure is reduced to half for a period of anything from 2 weeks to 12 months, again by agreement. I have seen retention held for 2 years on a particular project at 6%. The average for extensions would be 6 months, one offs or major refurbishments 12 months and 12 months in the case of most construction projects.

If a defect is found in the defects liability period (from practical completion to the end of the say 12 month period), the builder should be notified in writing, he should be given a reasonable period to rectify, and then you can sue retention money to fix the issue if he does not rectify (by giving clear indication of the cost of the rectification in advance). At the end of the 12 months a list should be drawn up of any and all defects that occurred in that period and this forms the basis of any agreement for final release.