Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 2 terms
A share of every certified bill withheld by the client until the project is complete and the defect liability period has expired.
Money the client agrees it owes and is entitled to hold, sometimes for years. Often classified as non-current, which is the clue that it is not a collection problem.
The period after completion during which a contractor remains responsible for rectifying defects, commonly one to two years.
Retention money is released when it expires and the handover is certified. Where the client is a department and the officer has moved on, the money is due and the certificate does not exist.