Retention Management & Recovery Services

Secure Your Cash Flow, Protect Your Bottom Line

Tired of waiting for retention funds to be released? KJM Ltd's specialist retention management and recovery service helps construction businesses reclaim what's rightfully theirs, improving cash flow and protecting your financial interests throughout the project lifecycle.

Understanding Retention in Construction

In the UK construction industry, retention typically amounts to 3-5% of the contract value, held back to ensure project completion and defect rectification. While standard practice, retention can significantly impact cash flow, with funds often remaining unreleased long after entitlement.

The Scale of the Problem:

  • £4.8 billion held in retention annually in the UK construction industry

  • 71% of contractors face delays in retention release

  • Average retention period extends 12+ months beyond contractual release dates

  • Small and medium contractors disproportionately affected by retention withholding.

Our Retention Management & Recovery Approach

KJM's retention specialists implement a systematic approach to retention management, from initial contract negotiation through to final recovery of funds:

1. Strategic Retention Planning

  • Contract Review – Analysis of retention clauses and identification of potential risks

  • Retention Schedule Development – Creation of detailed retention release timelines

  • Security Mechanisms – Implementation of protection measures such as retention bonds or trust arrangements

  • Release Trigger Documentation – Clear definition of conditions for retention release

2. Proactive Retention Management

  • Retention Register – Comprehensive tracking of all retention amounts, release dates, and status

  • Milestone Monitoring – Vigilant oversight of project completion and defect liability periods

  • Documentation Control – Meticulous record-keeping of all retention-related correspondence

  • Release Notification System – Automated alerts for approaching retention release dates

3. Expert Retention Recovery

  • Release Application Preparation – Development of comprehensive retention release submissions

  • Defect Resolution Coordination – Management of defect identification and rectification process

  • Client Negotiation – Professional representation in retention release discussions

  • Escalation Procedures – Structured approach to resolving retention release disputes

  • Legal Support – Expert assistance with formal recovery action when necessary

Benefits of KJM's Retention Management Service

Financial Advantages

  • Improved Cash Flow – Faster release of retention funds back into your business

  • Reduced Admin Burden – Our team handles the time-consuming pursuit of retention

  • Lower Finance Costs – Less need for external financing to cover cash flow gaps

  • Protected Profit Margins – Ensure full retention recovery maintains project profitability

Operational Benefits

  • Risk Reduction – Minimised exposure to insolvency risks in the supply chain

  • Process Efficiency – Streamlined approach to managing multiple retention accounts

  • Relationship Preservation – Professional third-party representation maintains client relationships

  • Peace of Mind – Confidence that your retention funds are being actively managed

Frequently Asked Questions

  • With proper management and documentation, 100% of contractually due retention should be recoverable.

  • Yes, our Historic Retention Recovery service specialises in pursuing funds from completed projects. While more challenging, we have successfully recovered retention dating back up to 5 years.

  • While our approach focuses on negotiated resolution, we provide comprehensive support for formal legal action when necessary, working with specialist construction solicitors to minimise your costs and management burden.