How do construction firms fund retention held back on projects?

Retention locks 3-5% of every construction contract for months or years; a working-capital facility replaces that trapped cash so held-back money doesn't stall the next job. Clients typically hold back 3-5% of each contract as retention, releasing half at practical completion and the rest after a defects period that can run a year or more. That cash is earned but locked away.

How do construction firms fund retention held

2 min read

3-5% heldPer contract

Released lateMonths or years

Bridge itWorking capital

Why retention squeezes builders

Clients typically hold back 3-5% of each contract as retention, releasing half at practical completion and the rest after a defects period that can run a year or more. That cash is earned but locked away.

Fund around it

A working-capital facility replaces the trapped retention so you can fund the next project. Model the aggregate held-back across all live jobs on the working-capital calculator.

Chase releases actively

Track retention release dates and pursue them the moment they fall due — this is real money too easily forgotten. Finance bridges the wait; good administration shortens it.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online when the numbers work.

Frequently asked questions

Can I borrow against retention held back on contracts?

A working-capital facility bridges the cash that retention ties up. Because Credicorp lends to the company against overall trading, you don't need the retention itself as security.

How much retention is normal in UK construction?

Typically 3-5% of contract value, released in two stages — around half at practical completion and the balance after the defects liability period, often 12 months later.