Retention (money)
Sheet under review by our engineersRetention is a small percentage (often 5% to 10%) of the total amount that you withhold and only pay to the contractor after a certain period (e.g., 6 to 12 months) following the delivery of your house.
Why it matters for your home
This is your safety net for minor defects that appear after you move in (a crack, a leak). If the contractor doesn't come back to fix them, you can use this money to hire someone else. It's a strong incentive for quality work.
The African context
In Africa, contractors can be hard to reach once the final payment is made. So, the retention amount is essential to ensure follow-up and post-delivery corrections, which are often overlooked.
Red flags
- ⚠ The contractor absolutely refuses any retention amount.
- ⚠ The contract doesn't mention any warranty period or defect correction.
- ⚠ The contractor insists that the full amount be paid as soon as the 'keys are handed over'.
- ⚠ The retention period is very short (less than 6 months).
Questions to ask
- 1. "What is the duration and percentage of the retention amount?"
- 2. "What are the specific conditions for releasing this sum (e.g., final inspection by an expert)?"
- 3. "What happens if defects appear during this period and the contractor doesn't fix them?"
Cost hint (indicative)
It's usually 5% to 10% of the total project cost, which you temporarily hold back.
Related terms
At this stage of your project?
An independent DiasporaBuild inspector can verify on site before you pay.