- Allows for release of retention monies that would otherwise have been withheld
- Main contractors
Retention bonds are issued in favour of any owner who has agreed to waive a contractual right to deduct retention monies from the sums due to you under the relevant contract terms, in respect of the work you have completed. The bond represents the amount of retention money that would otherwise have been withheld. This is commonly between 3% and 5% of the contract price.