Retention and DLP (defect liability period)

By the Pakka team · Updated October 2026

Retention is a part of a contractor's or vendor's payment, often 5 to 10 percent, held back until the defect liability period (DLP) after handover ends. During the DLP they must fix defects at no cost.

In practice

Retention protects you if a vendor does not come back for defects. The percentage and the DLP length are set in the contract. The common mistake is releasing retention while snags are still open.

In Pakka

Vendor contracts in Pakka carry advance and retention. Retention is released only when the vendor's snags are closed, and a named person approves the release.

Measurement book: how it works in Pakka

Related terms.

Measurement bookA measurement book is the record of actual quantities done on site, line by line, agreed between you and the vendor. The final bill is built from it.Read more

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