020 8774 5900

Retention Bonds

A Retention Bond is a type of bond which ensures the contractor receives the full amount of their agreed payment certificate, without deductions.  It alleviates the need for the deduction of retention and guarantees the contractors’ obligation to undertake completion works (or “snagging”) during the defects liability period of the Contract.

A Retention Bond ensures the contractor receives the full amount of their agreed payment certificates, without deductions.

It alleviates the need for the deduction of retention. It guarantees the contractors’ obligation to undertake completion works (also known as “snagging”) during the defects liability period of the contract.

It is typically required by contractors operating in the following industry sectors:

  • Construction
  • Property Development
  • Support Services
  • Facilities Management

Information required for a quote

Whilst no means exhaustive, here are the main items you will need

  • Bond application form, specific to the Bond required
  • Bank information form and facility details
  • Bond wording
  • Budget & forecast accounts
  • Current order book and pipeline
  • Last filed full report & accounts
  • Management accounts and supporting balance sheet

Wording check information requirements

  • Duration of works
  • Bond release event
  • Contract type
  • Contract amount
  • Beneficiary
  • Location of works
  • Bond amount
  • Proposed bond wording

Get in touch

As a Specialist Surety Services Provider, DRS specialise in the arrangement of Retention Bonds. We have an approved list of investment grade sureties (typically “A-” Standard & Poor’s or higher) to meet the requirements of Bond beneficiaries

Please contact us >

020 8774 5900