Mastering Retention and Progress Payments for Tradies

Understanding Retention and Progress Claims

For many trades businesses, particularly those in the construction sector, working on large jobs means navigating complex payment schedules. Progress payments allow you to bill for work as you complete stages, while retention payments are held back by the builder or client as security.

• Clearly define progress milestones in your initial contract
• Issue invoices immediately upon reaching a milestone
• Keep a dedicated register to track when retention is due to be released
• Reconcile retention balances regularly to avoid forgotten income

1. Review the contract to understand the percentage held for retention
2. Invoice for the full work amount and note the retention deduction
3. Submit a claim for the retention release once the defects liability period ends