If you’re a main contractor working in the UK or Australia, juggling subcontractor claims and retention releases probably feels like trying to juggle water. On one side you’ve got subbies submitting their progress claims; on the other you’ve got your client holding retention until you hold retention from your subs. It all gets messy.
What if you could plug in a system where claims, approvals and retention releases speak to each other — so you see clear answers like: “How much retention do we owe to subcontractors this month?” or “What retention is the client holding that we’re about to release?”
That’s exactly where Planyard steps in. But first: let’s unpack the pain points, then explore good-practice solutions, and finally show how Planyard delivers.
The problems: Why many contractors get stuck
1. Retention = “money on hold” that hurts cash flow
Retention is common in UK and Australian construction contracts: typically a percentage withheld (say 3-5% or up to 10%) from a payment to ensure defects are fixed or completion is achieved.
But that “hold” often causes trouble. In the UK alone, between £3.2-5.9 billion is estimated to be withheld in retentions annually.
2. The double-retention trap
As a main contractor:
- Your client might be withholding retention from your contract sum
- You’re withholding retention from your subcontractors
If you lose track of who owes what and when, you risk releasing retention to subbies before you’ve seen it from your client — or worse, missing the date when you should release retention and ending up in a dispute. The research shows subcontractors frequently experience very late retention release.
3. Admin overload, inconsistent formats, too many spreadsheets
Subbies send claims in varied formats (PDFs, spreadsheets, emails); QSs re-enter them; approvals bounce around; retention ledger lives in some separate spreadsheet; finance has its own system. The result: duplicates, errors, lost retention, tension and wasted time.
4. Retention release is often ambiguous or delayed
In the UK, retention is typically released in two parts: half upon practical completion, half at the end of the defects liability period. But if the contract clause is unclear or you haven’t tracked the trigger dates properly, retention gets stuck. Many subcontractors end up writing off the amount.
5. Regulatory and reputational pressure is increasing
In the UK, from 1 March 2025, large construction-related businesses must publish retention practices under the Reporting on Payment Practices & Performance Regulations. So managing retention purely in a spreadsheet isn’t just risky for cash flow – it’s increasingly visible.
What a modern process should look like (and why spreadsheets fall short)
Here’s what “good” looks like for managing subcontractor claims + retention releases:
- Subcontractors submit structured claims online (not via a dozen different templates).
- The system calculates cumulative claims, previous approved amounts, retention withheld per claim automatically.
- A single workflow routes from subbie → QS → PM → commercial approval with tracking and audit trail.
- Retention ledger integrated: tracking retention owed from client, retention withheld to subs, upcoming release dates.
- Everything links to your budgets, project cost lines and variations (so you’re checking claims against the budget, not guessing).
- Real-time dashboards show retention exposure, upcoming releases, net retention position.
Why spreadsheets don’t cut it: because you’ll always be fighting version control, manual re-keying, human error, multiple disconnected trackers. The claim formats differ, the retention rules differ, the ledger is fragmented. Eventually you lose clarity, you lose margin, you lose confidence.
Enter Planyard: the smart, deliberate solution
This is where Planyard comes in as the reliable, tailored tool for this challenge.
Online subcontractor claims
With Planyard, your subcontractors fill in an online form. The claim system:
- Knows the contract sum and retention rule.
- Shows what’s been claimed/approved already.
- Prevents claims exceeding awarded amount.
- Applies correct retention percentage automatically.
No more chasing weird Excel files from subs, no re-keying errors.
Retention ledger built-in for both sides (subs + clients)
Planyard tracks retention on each subcontract: amount withheld, amount released, amount outstanding. It also tracks what your client is withholding from you, and when you expect it released.
That gives you a live “net retention position” for each project.
It means you can answer questions like:
“On Project X, our client is holding £120k in retention; we are holding £45k from subs; we expect £60k release next month; are we safe to release £30k to our subs yet?”
Approval workflows tailored for QSs/PMs
Claims are routed automatically: subcontractor → QS approval → PM/commercial → final release. Each stage is tracked. QSs have visibility of budget/cost impact; commercial team see net retention; finance sees approved amounts ready for payment.
Linking claims to budgets and cost value reconciliation (CVR)
Rather than claims living in isolation, Planyard ties the claim back to your project’s budget lines, variations and cost reports. That means less guessing, fewer “Why does this claim exceed budget?” moments, and more confidence that retention timing aligns with project profitability.
Designed for UK & Australian contractors
Whether you’re dealing with UK contracts (retention practice, new reporting requirements) or Australian rules around retention funds and GST/tax impact, Planyard supports the region-specific workflows. The systems around retention in Australia demand you treat tax and trust accounts carefully.
Key benefits you’ll feel (and your team will thank you for)
- Fewer spreadsheets. One system. Less risk of “which version is current”.
- Faster claims approvals. Less chasing, fewer back-and-forths.
- Clearer retention visibility. Know what’s owed, what’s due, and what you can release safely.
- Better cash-flow management. Your team isn’t reversing figures, they’re analysing margin.
- Stronger commercial position. You’re not invisible in retention chain; you’re in control.
- Reduced risk of disputes. Clear audit trail on approvals, release triggers, contract linkage.
- Compliance ready. Especially in the UK with required retention reporting from 2025.
Final word: You can spend all day wrestling spreadsheets—or step into clarity
If your monthly rhythm is: collect subcontractor claim spreadsheets, fix missing data, chase approvals, update retention tracker, merge with client schedule, reconcile with budget — then yes, you’ve outgrown spreadsheets.
Switching to Planyard doesn’t just move you from “messy spreadsheets” to “fancy spreadsheets in the cloud”. It changes your workflow: claims become structured, retention becomes visible, approvals become automatic, budgets become linked.
In short: you stop reacting to retention problems and start managing retention as a margin-protecting tool.
Want to see how online valuations, the live retention ledger and approval workflows look in action? Sign up for a demo. Your team will be relieved. Your CFO will be more relaxed. Your subcontractors? Happier (and still getting paid).