What is a first and second moiety retention in a construction contract?

Moiety means division or share. The first moiety in a construction contract is the first half of the retention payable when the contractor has completed their work on the project.

The second moiety is the final part of the retention, paid when the liability period for defects has ended. The defects liability period as it pertains to payment of the second retention payment can be as short as six months or, in some cases, more than a year.

The payment points for first and second moiety retentions are defined in the construction contract.