How much of your money is sitting in retentions?

Retentions only help if you can see them

Retention is easy to ignore when each job only withholds a small amount. Across several sites, though, those small holdbacks can become real money tied up in finished work. Business.gov.au says good records help you track your business health and manage cash flow, which is exactly what retention tracking should do. ([business.gov.au](https://business.gov.au/finance/payments-and-invoicing/record-keeping?utm_source=openai))

The practical problem is not the percentage alone. It is the gap between when you earned the money and when the contract says it can be released. Construction work is often paid in stages, so a subcontractor can finish a job and still wait months for money that should already be on the way. ([business.gov.au](https://business.gov.au/planning/industry-information/construction-industry?utm_source=openai))

Build one live register for every job

Start with a simple retention register. List the project name, customer, invoice number, amount held back, percentage retained, and the clause or milestone that controls release. Business.gov.au recommends clear invoice details and proper record keeping so payments can be tracked and queries resolved quickly. ([business.gov.au](https://business.gov.au/finance/payments-and-invoicing/how-to-invoice?utm_source=openai))

Keep the register live rather than treating it as a once-a-quarter clean-up. Add the date the retention was first withheld, the expected release date, and any defect-period condition that must be met first. If the contract terms are scattered across emails and job notes, pull them into one file so the release trigger is obvious. ([business.gov.au](https://business.gov.au/people/contractors/prepare-a-contract?utm_source=openai))

Source: Official guidance

Put the release date where it can be missed

A retention that is not dated properly is easy to lose. Put every release date in your diary, accounts system, and job file so the same date appears more than once. Business.gov.au says keeping due dates in view helps cash flow, and that same discipline stops retention money disappearing into the background. ([business.gov.au](https://business.gov.au/guide/guide-to-managing-cash-flow?utm_source=openai))

Treat the release date like a payment deadline, not a rough guide. If the contract requires a notice before release, set the reminder early enough to prepare the paperwork. Business.gov.au notes that payment terms should be clear on invoices and contracts, because unclear timing creates delay and late-payment risk. ([business.gov.au](https://business.gov.au/finance/payments-and-invoicing/payment-terms?utm_source=openai))

Claim it the day it becomes due

Do not wait until the next progress claim cycle if the retention is already due. Send the claim on the day it becomes payable, keep it short, and attach the job reference, amount, and basis for release. Business.gov.au says sending invoices on time and at a regular schedule helps customers know what to expect. ([business.gov.au](https://business.gov.au/finance/payments-and-invoicing/how-to-invoice?utm_source=openai))

If the release depends on sign-off, include the notice or request it in the same email and keep proof of delivery. That way, your file shows when the claim was made and what was requested. Good records also matter if the payer later says the paperwork was incomplete or the date was wrong. ([business.gov.au](https://business.gov.au/finance/payments-and-invoicing/how-to-invoice?utm_source=openai))

Chase overdue retentions before they drift further

Once the due date passes, move the file from admin to recovery. Check whether the delay is a missing notice, a defect complaint, or simple stalling, then follow up in writing. Business.gov.au says late payments need a clear chase process, starting with reminders and moving to firmer action if payment still does not come through. ([business.gov.au](https://business.gov.au/finance/payments-and-invoicing/payment-terms?utm_source=openai))

This week, list every retention held across your jobs, note the exact release date for each one, and send the first overdue chase today. If the amounts are adding up and the file is getting messy, call CRP today about debt recovery. CRP coordinates independent qualified professionals. This article is general information only, not legal, tax, or financial advice. ([business.gov.au](https://business.gov.au/finance/payments-and-invoicing/record-keeping?utm_source=openai))