What You Need to Know About Retention Bonds?

There are different types of bonds that as a contractor you will need to obtain in order to get approved for a public or private construction project. One of these bonds is retention bond. IT is basically a type of bond that ensures the contractor receives the full amount of agreed payment, without any fees or deductions. This bond alleviates the need for any possible deductions of retention. It also guarantees the obligations of a contractor to perform project works during the defects liability period of the construction contract.

If you are interested in obtaining a retention bond, visit drsbonds.co.uk to get more information about how this bond works and what you need to provide in order to obtain this bond. These types of bonds are not required by all industries. There are some specific industries where contractors are required to have a retention bond. These industries include construction industry, support services property development and facilities management.

In order to get a quote to know if you are eligible to get a retention bond or not, you will need to provide specific information. This information may include bond wording, bond application form, your financial information (bank information form and facility details), current order book and pipeline, budget and forecast accounts, last field full report and accounts, along with information about your managements and supporting balance sheet. Once you have provided this information, you will be able to get a quote from surety bond Management Company or from a surety bond brokers.

There is some important information that your broker will require in order to help you obtain a retention bond. This information include duration of works, contract type, bond release event, contract amount, beneficiary information, proposed bond wording, bond amount and site of construction project where he work will be carried out.

It is highly recommended to contact a reliable surety bond management company like DSR bond management in order to know more about what you will need to provide in order to get this bond. This bond offers great benefit to both contractor and employer. It is important to note that some employers may refuse to work with the contractor without a retention bond. So, make sure you do your homework about obtaining this bond before bidding on a construction project that you are interested to undertake.

In addition to these things, bear in mind that a retention bond comes with a cost. That cost depends upon a variety of reasons, such as your financial history, your eligibility to obtain a retention bond etc. If your financial history is very important because a good financial history can help you obtain retention bond at lower fee, while a bad financial history will keep you from obtaining a retention bond with good terms.

It is highly recommended to learn more about this type of bond to decide whether you should obtain it or not. For more information, visit drsbonds.co.uk. There you will find everything you need to know about retention bond.