Retention bond

A separate security instrument that may replace cash retention on agreed terms.

by Jack Butler-Kettle · About 2 min readShare

Further detail

Read this alongside JCT explanation of retention and bonds in lieu.

A retention bond may replace cash retention where the parties agree. It creates a separate security arrangement with conditions governing any demand. Amount, expiry, reduction, cost and wording all matter; the existence of a bond does not automatically release cash unless the contract provides for that.

Compare the proposed security with the subcontract and obtain advice on the instrument. Retention tracking and release process setup can help identify the release and record-keeping arrangements.

Sources

What’s Wrong with Retention? (JCT explanation of the 2016 forms). The Joint Contracts Tribunal.

Contract and security document register

Obtain authorised documents from the publisher or relevant party. Use the register to track them; it does not reproduce or supply a standard contract.

Download blank Excel workbook

Free blank template for your own project. The completed example is shown below. No email address required.

View the completed example

Completed fictional example

Westhaven refurbishment · 14 October 2026 · Version 1.0

Contract and security document register

Scroll across if needed to read the whole record. A dash means no value has been entered.

Contract and security document register: completed fictional example
Document	Form / edition	Parties / beneficiary	Execution / expiry	Review question	Source / status
Main contract	Selected JCT form and edition to be confirmed	Employer / contractor	Signed copy required	Check particulars, amendments and incorporated documents	Obtain licensed copy from JCT
Collateral warranty	Project-specific agreed draft	Subcontractor / named beneficiary	Execution pending	Check duty, liability limit, assignment and step-in provisions	Obtain agreed draft from project team
Performance bond	Bond provider draft	Contractor / employer	Expiry and claim conditions to be verified	Check trigger, amount and required demand documents	Obtain provider-issued instrument

The download is an original document-control register. Copyright standard contracts, warranties and bonds must be obtained through authorised sources and reviewed for the project.

Browse the Library