How much retention money is usually held in Singapore?
It depends on the contract, and the figure should be written into it. In reported cases on SIA-form contracts, the employer kept 10% of each interim certificate until retention reached a limit of 5% of the contract sum. Half was released at completion and the balance at the end of the maintenance period. The public-sector PSSCOC 2020 form takes a different approach: no standing retention, but a security deposit or guarantee of an amount set in the Appendix.
From the RRD Field Guide, checked against the sources cited in Defects Liability Period and Retention Money in Singapore: DLP, Maintenance Period, Final Account and Late Defects. General information, not advice for your project.
The fuller picture
The defects liability period (DLP), called the maintenance period in SIA contracts, is the window after completion in which the contractor must return and fix defects. Retention is typically released half at completion and half when the DLP ends. Later defects can still be claimed: generally within 6 years, or for negligence 3 years from knowledge, subject to a 15-year long-stop.
More questions on this topic
- What is the difference between the defects liability period and the maintenance period?
- When should retention money be released?
- Can I still claim for defects found after the defects liability period ends?
- How long do I have to sue for a latent defect in Singapore?
- What is a final account in a construction contract?
- Can the owner fix defects using another contractor and deduct the cost?
- Does SOPA apply to claims for retention money?