Retention bond
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Trade finance - major project contracting.
Retention bonds are a type of performance bond, used as an alternative to retention monies.
When using a retention bond, the client agrees to pay the amounts which would otherwise have been held as retention, and instead a bond is provided to secure the amount that would have been retained.
The value of the bond will usually reduce after completion has been certified.
Also known as a retention money guarantee, or a retention guarantee.
