When can retention money be released?
6.2. The total “retention money” shall be due for release upon final acceptance of the works.
How do you release retention money?
If upon request for the release of retention money, the Procuring Entity has determined that the contractor had satisfactorily undertaken the project in accordance with the Program of Work and construction schedule submitted and approved, it may then release the retention money substituted by a Surety Bond, provided …
What is retention amount how it can be deducted and released?
Retention is a percentage (often 5\%) of the amount certified as due to the contractor on an interim certificate, that is deducted from the amount due and retained by the client. The purpose of retention is to ensure that the contractor properly completes the activities required of them under the contract.
Is Project retention linked to project progress?
Purpose of Retention Money A form of security, provided for in construction contracts, as limited security for the due performance of the contractor’s obligations under the contract. The Fund accumulates by the owner retaining part of each progress payment due to the contractor until it reaches a maximum.
What is retention release?
Generally, a portion of the retention is released upon completion of the works. The remainder is released when the rectification period or defects liability period has expired and the relevant certification under the contract has been issued to confirm this.
How is retention paid?
Retention is a percentage (usually up to 5\% of the contract sum) of each payment made under a construction contract which is withheld in order to try and ensure that works under the construction contract are completed to the required standard.
What is limit of retention?
Definition: The maximum amount of risk retained by an insurer per life is called retention. Beyond that, the insurer cedes the excess risk to a reinsurer. The point beyond which the insurer cedes the risk to the reinsurer is called retention limit.
What is the purpose of retention money?
The purpose of retention money is, in significant part, to provide security, in the form of a source of funds, against the contractor’s failure to complete any work outstanding when the works are taken over and to remedy any defects or damage and in respect of any other liability of the contractor to the employer.
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