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