Retention becomes payable when the defect liability period (DLP) expires and no valid defect claim has been made, or when the contract's release conditions are met. The free consultation reviews the contract's retention and DLP clauses, the completion or handover certificate, any defect notices and their timing, and recommends an advocate's notice demanding release, followed by arbitration under the contract, a summary suit, or MSME Samadhaan for registered sub-contractors. Nothing upfront; 30% on recovery.
When retention becomes due
Read the clause. Typically a percentage of each bill is retained, half released on completion or handover and half after the DLP (often 12 months). Release may be conditioned on a completion certificate, a no-defect certificate, or submission of as-built drawings and warranties. The consultation identifies which conditions you have met and which the buyer is using as an excuse. Where the buyer has simply never issued a certificate it was obliged to issue, that failure does not postpone your right.
Defect claims used to hold retention
- Defects must be notified within the DLP and in the manner the contract requires
- The buyer must give you the opportunity to rectify before deducting
- Deductions must be substantiated with costs actually incurred
- A vague "snag list" issued after the DLP does not justify holding the full retention
Bring every defect notice and your responses; the timing usually decides the point.
Routes for retention claims
| Situation | Route |
|---|---|
| DLP expired, no valid defect claim, contract has arbitration clause | Advocate's notice; arbitration if not released |
| Retention a fixed, certified sum; no arbitration clause | Notice; summary suit |
| Udyam-registered sub-contractor or supplier | Notice with MSMED interest; MSME Samadhaan |
| Buyer insolvent | Claim to the resolution professional |
60% of FundRaksha matters settle at the notice stage; developers and main contractors usually release retention rather than open a formal dispute.
Documents and next steps
- Contract or work order with retention, DLP and dispute clauses
- Final bill and statement showing retention deducted
- Completion or handover certificate, or evidence of completion
- Defect notices received and your rectification records
- Correspondence requesting release
If you decide to go ahead, a dedicated advocate is assigned within 24 hours of your complete documents and the legal notice goes out as an e-notice, followed by registered post. Nothing is charged upfront. If you proceed, FundRaksha Legal charges 30% only on the amount actually recovered; if nothing is recovered there is no success fee. Court fees, where a matter is filed, are borne by you and told to you in advance. See also the construction dues consultation, the construction industry page, vendor payment, and city pages for Gurugram and Bengaluru.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.