5th February 2026
Taking Back Control of Retentions
22nd October 2025
Contractors accept retentions as part of the job but chasing them years after completion is a reality few anticipate. Unfortunately, that reality has become more common. The UK Government’s 2025 consultation on payment practices highlights retentions as a major point of dispute, with frequent delays and a real risk of loss if a client becomes insolvent. At a time when cash flow across the whole construction sector is already under strain, waiting this long proves costly.
We are increasingly seeing cases where retentions are never released at all. A contractor may complete their work to standard but if the client enters administration or drags out the sign-off process, those sums can disappear entirely. In one recent referral to us, a roofing firm had more than £200,000 tied up in retentions across several projects. When one of their clients collapsed, the firm lost the immediate income as well as the working capital they were relying on to start new contracts.
The length of time involved makes matters worse. While retentions are often agreed for months, we regularly hear from contractors still waiting years later. During that period, the likelihood of successful recovery sharply drops. Documentation is harder to retrieve and disputes become more difficult to resolve. By the time many contractors escalate to us, the trail has already gone cold.
Despite being originally designed to give clients reassurance, in practice, retentions are placing disproportionate pressure on contractors. The question for roofing firms now is how to protect themselves against retentions that drag on or worse, disappear altogether?
In our experience, three practices make the biggest difference. The first is following up early. Retentions that are chased as soon as they fall due are far more likely to be released than those left for months on end. The second is clarity of records. Keeping contracts and sign-off certificates in order means less room for disputes to drag on if a client delays payment. Finally, knowing when to escalate. If a retention is long overdue and communication has broken down, passing the matter to a specialist recovery partner improves the chance of success while maintaining client relationships professional.
The contractors who manage retentions most effectively are those who refuse to let them drift into the background. Following up while the project is still fresh gives them a far better chance of recovery than waiting until the trail has gone cold. That’s where we’ve helped roofing firms turn stalled payments back into working capital, allowing them to focus on new projects rather than old disputes.
To discuss how Redwood Collections can support your business, call 020 8080 2888 or email enquiry@redwoodcollections.com.
