Retention is money you have already earned. It is easy to forget because it comes back months or years after the work, often to a different person in the client's office. This guide shows a simple way to track it, with the numbers you need from each certificate. It is general information, not legal or contract advice: your contract decides the rate, the cap, the release events and the payment terms.
1. What "common practice" looks like
Chambers and Partners' Construction Law 2026 guide for the UAE says: "Typically, as in many jurisdictions, 10% of each interim payment made to a contractor will be retained by the employer, with 50% of the total retention released after takeover and the remaining 50% released after expiration of the defects liability period." It adds that the defects liability period "typically lasts for 24 months. That said, it is open to the parties to agree to a shorter or longer period." Many contracts also cap retention at a percentage of the contract sum. Read yours.
2. Five numbers per project
| Input | Where to find it |
|---|---|
| Retention % and any limit | Contract (particular conditions / appendix) |
| Certified gross to date | Latest interim payment certificate |
| First release share | Contract (often half at taking-over / completion) |
| Completion / taking-over date | Taking-over or completion certificate |
| Defects period (months) and payment terms (days) | Contract |
Retention held = the lower of (certified to date × retention %) and the cap. First release date = completion date + payment terms. Second release date = end of the defects period + payment terms. The free retention release calculator does this for one project, in English and Arabic, and gives you a calendar file and a WhatsApp-ready message.
3. Put both dates in the calendar on the day of taking-over
The day the taking-over certificate arrives, add two reminders: the first release date and the second. A week before each, send a short request with the certificate reference and the amount. Note the date you sent it.
4. Track applied vs certified at the same time
Retention is calculated on what was certified, not what you applied for. If the certifier cuts your application, ask for the reasons in writing while the work is fresh. A monthly line per application (applied to date, certified to date, retention to date, net, VAT, due date, paid) is enough to see the gap and the overdue amounts. Atradius's 2026 survey of UAE businesses reported "roughly two in five invoices being settled late", with construction among the sectors "the most affected", so the overdue column matters as much as retention.
5. Variations: no instruction, no money
Log every instruction the day you get it, including verbal ones, and chase written confirmation. Unpriced and unapproved variations are the other quiet loss on most jobs.
6. One register for every project
If you run several projects, the optional Contractor Payment & Retention Register (Excel / Google Sheets, English + Arabic with RTL files, $49 Solo / $129 Company, 14-day money-back guarantee) tracks applications, retention release dates, variations, ageing and a 12-month cash flow. For daily records on site, the free daily site report maker makes a bilingual PDF. For letters to slow payers, see the Invoice Chase Kit. None of these are legal advice; not affiliated with FIDIC.
Sources
- Chambers and Partners – Construction Law 2026, UAE (updated 4 June 2026)
- Atradius – Payment Practices Barometer, United Arab Emirates 2026 (PDF)
Related guides
- A late-invoice chase schedule you can run from a spreadsheet
- How to track unpaid invoices in Google Sheets, with Gmail reminders
Published 2026-10-09 by Karuna Labs. Our tools check file structure and checksums; always review outputs (and payment files in your bank's preview) before relying on them. This is general information, not financial, tax or legal advice.