Your retention receipt and your subcontractor release may follow different clocks

Two balances share a label but not a timetable

Your builder holds retention from you, while your business holds retention under a separate subcontract. It is tempting to assume one receipt will fund the other release. Check that assumption. The two contracts may involve different work, conditions and dates, so the amounts should be visible separately before the business makes a cash promise.

Build one record for each contract

Identify the contracting parties, amount held, relevant clause and supporting completion documents for both arrangements. Mark uncertain figures and missing evidence. Do not copy the upstream date into the subcontractor record simply because the work took place on the same project. Ask the adviser to review how each obligation actually operates in the applicable circumstances.

Read the payment arrangements independently

Business.gov.au's contract guidance recommends clearly setting out payment arrangements. Use the written terms as the starting point for the two reviews. This does not establish that your subcontractor must wait for your builder to pay, or that any particular clause is enforceable. Obtain specific advice rather than using an expected receipt as a substitute for understanding the downstream obligation.

Source: business.gov.au: Prepare a contract

Model the possible gap

Imagine your own release payment may be required in one month while the builder's receipt remains uncertain until later. Show both events in the forecast using separate assumptions. If the expected receipt moves, the other item should not disappear automatically. Ask the accountant and adviser how the timing affects available funds and the decisions needed now.

Follow up with the right evidence

For the upstream account, request the missing release information through the agreed channel. For the downstream account, review the actual claim and conditions promptly. Keep the communications separate and accurate. Avoid telling either party that a single project calendar settles the question when the contracts and supporting documents still require examination.

Review both positions together without merging them

Maintain linked records so management can see the funding relationship, while preserving each legal and accounting position. Escalate any gap before making unsupported promises. A useful retention forecast shows what the business expects to receive and what it may need to pay, rather than treating a shared project name as proof that both cash events will occur together.