Retention is money held under a contract as security, often for defects. For Queensland contracts covered by Part 4 A of the QBCC Act, a statutory 12-month release period applies if the contract does not provide for release at the end of an identifiable period. Check the contract, the Act and the notice obligations before assuming the money is due.[2]
Check the contract and statutory scope
Part 4 A of the Queensland Building and Construction Commission Act 1991 concerns building contracts other than domestic building contracts. This guide focuses on commercial contracts and subcontracts within that Part. Do not apply it automatically to a direct domestic building contract.
Record what the retention secures, how it is calculated, the practical-completion date, the defects period and each release trigger. Retention and other security can have statutory limits; the Act has qualifications, so this guide does not suggest one percentage for every contract.
Release and notice rules
Sections 67 NA to 67 NC distinguish the release obligation from the end-of-defects notice. A notice is not itself proof that every contractual release condition has been met.
| Situation | Rule to check |
|---|---|
| No release at the end of an identifiable period | Section 67 NA supplies a release period ending 12 months from practical completion where its conditions apply. |
| Ordinary end-of-defects notice | Give the approved notice within the 10 business days before the defects liability period ends. |
| Linked subcontract period and late upstream notice | If section 67 NC(3) applies because the upstream notice arrives too late for the ordinary rule, give the subcontractor notice within 5 business days after receiving it. |
| Contracting as principal | The notice duty in section 67 NC does not apply to a party contracting as principal. |
Sources[2]
Keep a retention register
This is a practical management record. Keep the contract clause and a running balance with every payment. Save the practical-completion evidence, defect notices, rectification photos and release requests. Diary notice and release dates separately.
RETENTION REGISTER Job and contract: [ ] Retention clause and basis: [ ] Practical completion: [date and evidence] Defects period and release triggers: [ ] Payment claim | Retention withheld | Retention released | Balance [ ] | $[ ] | $[ ] | $[ ] Approved end-of-defects notice due: [ ] Upstream notice received (if linked): [ ] Notice given to subcontractor: [date, method, copy] Release requested: [date, recipient, reply] Outstanding defects or disputes: [ ]
Common questions
- What is retention money in construction?
- It is money withheld under a contract as security, commonly for defects. Read the retention and release clauses alongside the statutory rules that apply to your Queensland contract.[1][2]
- How long is retention held in construction?
- Use the release terms in your contract. For a contract within section 67 NA, if it does not provide for release at the end of an identifiable period, the statutory period ends 12 months from practical completion.[2]
Official sources
Checked 16 October 2026. Rules can change; use these sources to check the requirements for your job.
Related guides
- How do I make a Queensland security of payment claim?
- What must a Queensland payment schedule include?
- What should a building variation form include?
Job workflows for builders, plumbers, electricians, HVAC businesses.
Put it to work on the next job
Keep dated photos and notes on the Leadhand job record to support rectification and release discussions. Check release dates against the contract and applicable law.
See Leadhand job records