Retention Release in Ireland — Half at Handover, Half at 6 Months, and the Trap

Retention release: half at handover, half 6 months later. Don't release until the snag is closed or in writing agreed. The retention is your leverage against defects. Most contracts hold 5% retention until snag closure. Some hold 2.5% for 12 months and 2.5% for 24 months (longer retention for latent defects). Document the snag closure in writing. Get the Assigned Certifier to confirm before each release. The first release (half at handover) is conditional on the snag list being agreed and a programme for closure. The second release (half at 6 months) is conditional on the snag being closed. Some contracts have a third retention (2.5% at 24 months) for latent defects. Check your contract.

TL;DR

• Retention release: half at handover, half 6 months later. Don't release until the snag is closed or in writing agreed.

• The retention is your leverage against defects. Most contracts hold 5% retention until snag closure. Some hold 2.5% for 12 months and 2.5% for 24 months.

• Document the snag closure in writing. Get the Assigned Certifier to confirm before each release.

When this matters most

You're at the snag stage and need to plan the retention release.

When this doesn't apply

The retention is released.

Frequently asked questions

When is retention released?

Half at handover (after practical completion), half 6 months later (after snag closure). Some contracts have a third retention (2.5% at 24 months) for latent defects.

What if the contractor refuses to fix snag items?

Don't release the retention. Document the items in writing, with photos and dates. If the contractor still refuses, the Assigned Certifier can withhold the CCC. The retention is your leverage.

How much retention is typical?

5% of each stage payment. Some contracts hold 2.5% for 12 months and 2.5% for 24 months. Get this agreed in the contract, not at the end.

Sources

RIAI, Form of Building Contract 2012. https://www.riai.ie/