General legal information about contract terms in the UK, not legal advice.
Be Wise owl logoContract Glossary

Be Wise › Contract glossary › Retention

Retention

In building contracts, a retention is a percentage of each payment held back until defects are put right after completion.

Prepared by a retired English qualified solicitor (LLB, LLM) · reviewed · applies across the UK unless stated · how we draft

In more detail

The contract should state the percentage, when it is released and in what circumstances it can be used.

In Scotland

In Scots law, retention also refers to a party's right to withhold its own performance until the other party performs.

Put it into a contract

Be Contract Wise provides very powerful, carefully prepared tools to draft and review simple or complex contracts under the law of England and Wales or Scots law, explaining every clause in plain English.

England & Wales appScotland app

Reviewed 2026-09-24. General legal information, not legal advice.