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Retention money

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retention money is a percentage retained by the employer from each certified interim payment to make sure that the work executed by contractor complying with project specification and requirement. Amount of retention money will be specified in tender documents.
Half of the retention money shall be paid to the contractor after taking over certificate. Engineer shall certify the amount for payment to contractor. the second half will be paid after completion of defect notification period.






In the event of issuing a taking over certificate for a section of work. in this case a proportion of two-fifth (40%) of (estimated contract value of handed over section or part divided by final contact price) retention of money shall be paid to contractor. after the end of defect notification period for the section of work. a proportion of second half of retention money shall be paid. the proportion should be two-fifth of (estimated contract value of handed over section or part divided by final contact price). in the events of work remaining under defect liability the engineer has the right to withhold the certification of the estimated amount.





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