Retention monies released
| bond type | Retention bond |
| purpose | Release of full progress payments as well as retention money. |
| bond facility limit |
$20,000,000 |
| contract value | $12,500,368 |
| bond value | 2.5% of contract value |
| bond amount | $314,184 |
| bond term | Retention Bond 1: from contract start date to contract completion date. 296 days. and Retention Bond 2: from contract start date to final completion date. 661days. Calculated as per day. |
The client was a construction, refurbishment and fit-out company who did not want monies held in guarantee.
The company had won the contract for the fit-out of a four levels commercial building in a capital city.
Draft bonds were issued within 24 hours of receiving application from the construction company, final bonds were then issued upon client’s approval and payment of the premium including all fees.
Upon lodgment of the Retention Release bond, the principal permitted the construction company to receive full progress payments as well as release of retention monies during the defects liability period of the contract.
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