Retention Recovery Calculator
Retention is the most overlooked cash drain in construction. It is money you have already earned, already delivered work for, already invoiced. It is just sitting in someone else's bank account, earning them interest while you fund the gap from your overdraft.
See exactly how much retention you are carrying, what it costs you in capital every year, and how much of that cost is directly caused by late release.
How much retention are you carrying?
Construction net margins typically sit around 2 to 6%.
Typically 3 to 5% on UK construction contracts.
Projects currently in delivery or defects period.
How many months past the contractual release date does retention typically sit before you receive it?
Current Bank of England base rate is 4.25%. Use your actual cost of borrowing or overdraft rate if higher.
What Retention Actually Is
Three things most contractors do not think about
Retention is the most widely accepted form of deferred payment in construction, and the least frequently questioned. These three facts change how most directors think about it.
- It is not a risk premium: Retention is held as security against defects. Once you have completed the work and the defects period is over, it belongs to you.
- It is not optional: You cannot waive retention by not chasing it. It stays on the books until you formally request release, which gives every client a financial incentive to delay.
- It is not cost-free: Every pound of retention is a pound you are funding from your own working capital, your overdraft, or your credit lines. It has a real cost, it just rarely gets calculated.
Why It Gets Lost
Why construction businesses routinely fail to recover retention on time
Retention is not usually lost to disputes. It is lost to inaction, disorganisation, and the assumption that the client will release it without being chased.
No one knows what is due and when
Retention release dates are buried in contracts that were filed at award and not looked at again. When the date passes with no action, the money simply stays where it is.
Late release is treated as normal
The construction industry has normalised retention sitting six to twelve months past its release date. That normalisation has a cost, and this calculator puts a number on it.
The amounts feel too small to chase
On any individual project, the retention pot might be a few thousand pounds. Across a full portfolio, it is typically 1 to 5% of annual turnover sitting idle.
StoneRise Commercial
Know what retention you are owed and when it falls due
StoneRise tracks every retention deduction against its contractual release date, sends proactive release notices before each due date, and maintains a complete audit trail from deduction to receipt.
The retention register is live, not a spreadsheet that someone updates once a quarter. When a release date passes without payment, the system flags it, not a monthly review meeting.
Live retention register
Every retention pot tracked against its contract, with the deduction amount, release date and responsible party.
Proactive release notices
Automated notices sent 30 days before each retention release date, with contract references and the exact amount due.
Overdue flagging
Any retention that passes its release date without payment is flagged immediately, not discovered at quarter-end.