- Contractors Receive Retention By Using a Bond as an Alternative
Contractors Receive Retention By Using a Bond as an Alternative
Retentions are common in the construction industry, often used by an employer to retain some of the contract value so that the contractor can ‘make good’ any issues that arise in the months after the project’s completion. Whilst the retention gives the employer additional protection, it adds pressure to the contractor's already squeezed cashflow as the contractor needs to wait to receive full remuneration for the works.
Take Back Control with a Retention Bond
A Retention Bond offers the same level of protection for the employer, without having to sacrifice the total value of the retention. This can make a big difference to the contractor’s bottom line, as the total contract value is retained by the contractor. The employer can claim on the bond if needed, instead of keeping the retention until the retention period has elapsed. Retention bonds are generally underutilised and often not known about as a suitable alternative to employers retaining payment, usually up to 12 months.
Our Surety & Specialist Risks team use a number of highly specialised providers to give you the most competitive premiums. The team can work with a wide range of bond wordings to satisfy employer requirements. Speak to the team today on 02476 017646 for more information about Retention Bonds.