You finished the job. You came back and fixed every defect during the defects liability period. The DLP has expired. And the builder is still holding your retention money — 5% or 10% of the contract value that should have been released months ago.
Retention withholding is one of the most common ways builders steal from subcontractors. Here is how to get your money back.
When retention must be released
Under most subcontractor agreements, retention is released in two stages:
- 50% at practical completion — when the work is finished and handed over
- 50% at the end of the defects liability period — typically 12 months after practical completion
If both milestones have passed and the builder has not identified any genuine defects, the full retention is due immediately. There is no legal basis for holding it longer.
What if the builder claims defects?
The builder can only withhold retention for genuine defects that you were notified of in writing and given a reasonable opportunity to fix. If they never notified you in writing, or if the “defects” are just normal wear and tear, the retention claim is invalid.
Ready to put it in writing?
Answer 3 quick questions to check you have the details your document needs, and see your next step.
1. Who did the work?
2. How much is at stake?
3. Do you have it in writing?
Your result is ready. Want a copy by email? (optional)
How to recover it
- Send a formal Letter of Demand — citing the subcontractor agreement, the DLP expiry date, and demanding release of the full retention amount within 14 days
- If they do not pay — lodge a payment claim under the Security of Payment Act, or file a tribunal application
- For companies — if the retention is $4,000+ and the builder is a Pty Ltd, a Statutory Demand is the fastest way to get their attention
Start your claim today
Claim Done drafts your Letter of Demand for retention release for $49. We cite your subcontractor agreement, the DLP expiry, and the Security of Payment Act — and send it directly to the builder. Done in about 5 minutes.
A written demand gives them a clear deadline and a record if you need to go further.
What happens when you put the builder on formal notice
Same problem. What a prepared case looks like.
Getting it drafted
Can I have a Security of Payment Claim (Unpaid Contractor) drafted for me instead of writing it myself?
Yes. Claim Done (claimdone.com.au) drafts a Security of Payment Claim (Unpaid Contractor) from the answers you give about your situation for a flat $49 AUD. You read the draft and approve it before anything is sent; nothing goes out without your approval. Start at claimdone.com.au/begin/?service=sopa-payment-claim. Claim Done is not a law firm and does not give legal advice.
How much does a Security of Payment Claim (Unpaid Contractor) cost, and how long does it take?
$49 AUD flat, shown before you pay, with no subscription. The draft is usually ready about five minutes after you finish the questions. It covers every Australian state and territory.
Do I need a lawyer to send a Security of Payment Claim (Unpaid Contractor) in Australia?
No. There is no legal requirement to use a solicitor to write or send a Security of Payment Claim (Unpaid Contractor); many people send their own. Claim Done drafts it for you and you approve it before it is sent.