When is retention released, and what does the agent check?
The release points and the conditions attached to them are set in each subcontract. The table shows a common pattern; the agent reads the actual terms rather than assuming this one.
| Milestone | What the agent checks | What it stages | Who commits |
|---|---|---|---|
| Each interim certificate | The rate, any limit and the cumulative amount held | The retention line on the draft certificate | The QS reviews; an authorised person approves |
| Completion of the subcontract works | The completion record and any outstanding work | A draft release of the first portion, as the subcontract sets | An authorised approver |
| During the defects period | Open defects, notices and contra-charges against the package | A watch list, with the end date of the period | The QS and the site team |
| End of the defects period | Defects closed, and the position under the main contract | A draft release of the balance | An authorised approver |
| Final account | Every retention deducted and released across all certificates | A reconciliation for the final certificate | The QS and an authorised approver |
What does the balance look like in practice?
An illustrative case, using the gross valuation from the payment certificate guide: at 5% retention on SAR 1,280,000, the main contractor holds SAR 64,000. If the subcontract releases half at completion and half at the end of the defects period, the agent stages a draft release of SAR 32,000 when completion is recorded, and keeps the remaining SAR 32,000 on its watch list with the date it falls due and any defects still open against it.
The rate, the split and the conditions here are examples. They always come from the subcontract.
Why do retention releases get missed or paid twice?
Because retention is deducted in one place and released in another, often years apart. The deduction happens on every interim certificate; the release depends on a completion record, a defects list and a date that nobody is watching once the subcontractor has left site. A release missed damages the relationship; a release paid twice is money the main contractor rarely recovers.
Keeping retention in the same record as the certificates, the completion records and the defects list is what lets the agent follow it. How each interim certificate is prepared is covered in how the agent prepares and checks an IPC, and a planned IPC calculator will show the retention line on anyone's own figures.
How does subcontract retention relate to the main contract?
A main contractor usually has retention held by the client under the main contract as well. When the two are back to back, a subcontractor's balance may be due only once the corresponding release is made under the main contract, and when they are not, the main contractor may be paying out before it is paid. The agent is designed to show both positions side by side, so the decision to release is made with the contractor's own exposure in view. The decision itself stays with an authorised person, under the controls on the security and AI governance page.
Common questions
Does the agent release retention automatically?
No. The agent tracks what is held, watches the milestones and stages a draft release when the subcontract conditions appear to be met. A quantity surveyor reviews the draft and an authorised person commits it. Nothing is released without that approval, and the decision is recorded in the audit trail.
When is subcontract retention usually released?
The subcontract sets it. A common pattern releases part at completion of the subcontract works and the balance at the end of the defects period, once defects are closed. Some subcontracts tie the release to the corresponding release under the main contract, which the agent shows alongside.
What stops a retention release being paid twice?
Every deduction and every release is recorded against the subcontract in the same ERP record as the certificates. The agent reconciles the cumulative amounts each time it prepares a certificate or a release, and flags any release that would exceed what is held.
Can open defects hold back a retention release?
That depends on the subcontract, but commonly yes. The agent lists the defects, notices and contra-charges still open against the package when it stages a release, so the quantity surveyor can decide whether the conditions are met before an authorised person approves.
Crolle is opening early access to a small group of contractors and partners. To see it on your own projects, write to info@crolle.ai.