Construction
Retention Release Controls
Tests whether construction retention monies were released only after defects liability obligations were met.
Why retention protects the state
Retention monies withheld on construction contracts are the employer's security that latent defects will be remedied during the defects liability period, and releasing them early forfeits that protection and frequently results in fruitless and wasteful expenditure under the MFMA. The AGSA scrutinises retention release because premature payment means the state pays in full for work it cannot later compel a contractor to fix. AuditPro Core tests retention releases against defects-liability completion so funds are released only when the obligation that justified withholding them has been met.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Contracts With Retention
142
active
Premature Releases
18
12.7%
Released No Sign-off
R 9.6m
▲ R 2.3m
Retention Held
R 41.2m
outstanding
Retention Status by Department (R'm)
Retention Released Without Sign-off
| Contract | Released (R'000) | Sign-off |
|---|---|---|
| WRK-721 | 2480 | Missing |
| WRK-744 | 1920 | Missing |
| WRK-768 | 1340 | Incomplete |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Purpose of retention
A percentage of each payment is withheld to ensure the contractor returns to fix defects. The money is leverage; release it and the leverage is gone.
The defects liability period
Retention should be released only after the defects liability period expires and a certificate confirms outstanding defects are remedied. Release before that date is premature regardless of contractor pressure.
Half now, half later
Contracts commonly release half of retention at practical completion and the balance at final completion. Tracking both tranches against their triggering certificates prevents early payout of the second half.
Certificates as evidence
Each release must be backed by the relevant completion certificate from the appointed professional. A release without the supporting certificate is the audit exception.
How AuditPro Core Bridges the Gap
- Milestone reconciliation: matches each retention release to the completion certificate that authorises it.
- Exception workflow: releases lacking a valid certificate are flagged before payment.
- Traceability to source: links released amounts to the contract retention schedule and signed certificates.
- Audit-ready export: produces a retention ledger showing withheld, released and outstanding balances.
Key Takeaways
- Retention is the state's leverage to compel defect remediation.
- Release only after the defects liability period and a certificate.
- Track both the practical and final completion tranches separately.
- Every release needs its supporting completion certificate on file.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.