Most standard forms of construction / building contract have a provision for the
retention of a certain percentage of the amount due to the Contractor. The main purpose
of retention monies is to serve as a protection mechanism for the Employer from the
Contractor’s failure or default in his performance under the contract e.g. rectification of
defective work. However, the retention monies are normally to be held by the Employer
fiduciary as trustee for the Contractor. The said monies belong to the Contractor and the
Employer only holds the retention monies in trust. Usually, the retention amounts often
not exceeding ten (10) percent and is limited to five (5) percent of the contract sum
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