Can I hold back part of a payment until defects are fixed?

Retention means holding money as security for performance under the applicable arrangement. Distinguish it from disputing an amount or claiming a deduction or set-off. Defects do not automatically give you a right to withhold payment. Check the contract and law before holding money, including any rules about retention amounts, release or trust handling. Follow any required payment-response procedure and obtain prompt advice if entitlement is disputed.

Official sources:

• Queensland QBCC Act sections 46 and 47
• WA Security of Payment Act current version
• ACT Hiring a builder

General information only. Requirements vary by state or territory and change over time, so check the current rules for your location.