Subcontractor Retention Release Workflow for Dubai

Retention releases without a structured workflow are how construction companies in Dubai leak cash and lose audit trails on completed work.

Start here

• Construction ERP — project-level financial controls including retention tracking
• Approval matrix — configure who can approve retention releases by amount
• Audit logs — every retention release decision is recorded with timestamp and approver

How retention works in UAE construction

Most subcontractor contracts in the UAE hold back 5-10% of each progress payment as retention. Half is released at practical completion, the rest after the defects liability period (typically 12 months).

The problem is not the policy — it is tracking which contracts have pending retention, what conditions must be met before release, and who actually approved the payment.

What a retention release workflow needs

1. Retention register — every active contract with retention balance, release conditions, and target dates
2. Trigger event — practical completion certificate, defects liability expiry, or client release instruction
3. Evidence attachment — completion certificate, snag list sign-off, or client letter must be attached before approval
4. Approval gate — retention releases above a threshold require senior approval via approval policies
5. Payment execution — approved retention flows into vendor payments with the retention flag

Controls that prevent early or unauthorized releases

• Block retention release if the contract status is not completed or defects-liability
• Require document evidence before the approval button is enabled
• Separate the person who certifies completion from the person who approves payment
• Log every status change in audit logs — no silent overrides

Monthly retention review

Run a monthly report of all contracts with pending retention balances. Sort by release date proximity. Flag any retention that has been held beyond the contractual period — these are liabilities that need resolution, not indefinite parking.

Track total retention exposure per project and per subcontractor. This is a cash flow number your finance team needs for month-end close.