Contract & Tender Security
Retention Bonds
Release retention cash early while defects liability continues.
What It Is
On most construction and infrastructure contracts, a project owner withholds a percentage of each certified payment — commonly 5 to 10 percent — as retention, released only after the defects liability period expires and any snagging is resolved. A retention bond allows the contractor to receive that withheld cash immediately, with Amorin guaranteeing the owner's position instead.
This is particularly valuable for contractors running multiple concurrent projects, where retention held across several contracts can tie up significant working capital for many months after practical completion.
The bond remains in place until the defects liability period lapses and the final certificate is issued, at which point it is released in the same way the cash retention would have been.
Who It's For
- Construction and infrastructure contractors nearing project completion
- Firms with retention held across multiple concurrent contracts
- Contractors seeking to improve cash flow without new borrowing
Key Benefits
- Frees up cash otherwise locked in as retention
- Improves working capital during the defects liability period
- Straightforward to arrange once the contract is substantially complete
- Reduces reliance on additional bank credit lines
How to Apply
Confirm the retention clause
Share the contract's retention terms and the current certified retention balance.
Assessment
We review the project status and the contractor's standing.
Issuance
The retention bond is issued to the project owner, who releases the equivalent cash retention.
Typical Requirements
- Signed contract with the retention clause
- Latest interim payment certificate showing retention held
- Company registration documents
- Note: requirements vary by facility
Frequently Asked Questions
Ready to apply for a retention bonds?
Share your contract or tender details and receive a structured response within one business day.