Retention Money
As Gaeilge: Airgead Coinneála
Also known as: Retention, Holdback
Last reviewed April 2026
A percentage of each interim payment held back by the authority to secure rectification of defects, released after substantial completion and again at the end of the defects period.
On Irish public works contracts (PW-CF series), the contracting authority withholds a defined percentage (typically 5%, capped) from each interim payment certificate as retention. Half is released on substantial completion (the certificate of practical completion) and the balance at the end of the defects-liability period once defects have been remedied. Retention is in addition to the performance bond and provides a cash backstop the authority can apply against rectification costs.
Related terms
Defects Liability Period
The period after substantial completion during which the contractor must return to remedy defects at its own cost, typically 12 months on Irish public works.
Performance Bond
A guarantee from a surety (bank or insurer) that the contractor will complete the works — typically 12.5% of the contract sum on Irish public works.
PW-CF (Public Works Contract Form)
The standard Irish government construction contracts (PW-CF1–CF5) under the Capital Works Management Framework — fixed-price, non-negotiable.