Retention money
A portion of the remuneration withheld by the client during the warranty period as security for defects; typically a few percent of the final invoice.
Retention money is a contractually agreed security: the client holds back part of the remuneration so as to have recourse for defects during the warranty period. Under ÖNORM B 2110, for example, it is a few percent of the final invoice for the duration of the warranty period.
The retention is usually replaceable by a bank guarantee, so that the contractor keeps its liquidity. It must be distinguished from the cover retention withheld already during the construction phase as security for proper progress.
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Legal basis
Statutory texts for orientation; the version in force at the relevant time prevails.
This explanation gives a general overview of Austrian law and does not replace advice in an individual case. The specific circumstances of your construction project are always decisive.
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Warranty
The statutory, fault-independent liability of the contractor for defects that the works already had at handover (sections 922 et seq. of the Austrian Civil Code, ABGB).
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Warranty period
The period within which warranty claims must be enforced: three years from handover for buildings and other immovable property (section 933 ABGB).
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Cover retention
An amount withheld from interim payments already during construction, securing the client against overpayment and defects in the building phase.
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