Retention Bond or Maintenance Bonds are issued in favour of the employer or main contractor and can aid cash flow and avoid the need to pursue retentions after the completion of the contract. On some types of contract, the contractor may also be asked to provide a Warranty Bond for the duration of the defects liability period.

Applicant/risk

• Construction companies
• Main contractor and sub-contractor.

Beneficiary

• Commercial companies
• Main contractor.