Source: https://www.quantsurv.com/library/glossary/retention-bond
Content format: Markdown version of the public page.
Content reviewed: 2026-10-10

# Retention bond

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

by [Jack Butler-Kettle](<https://www.quantsurv.com/about#jack-butler-kettle>) · About 2 min readShare

## Further detail

Read this alongside [JCT explanation of retention and bonds in lieu](<https://corporate.jctltd.co.uk/whats-wrong-with-retention/>).

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](<https://www.quantsurv.com/claims?service=%2Fretention%2Fservices%2Fretention-loss-prevention#client-types>) can help identify the release and record-keeping arrangements.

## Sources

1.  [What’s Wrong with Retention? (JCT explanation of the 2016 forms)](<https://corporate.jctltd.co.uk/whats-wrong-with-retention/>). 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](<https://www.quantsurv.com/downloads/library/contract-and-security-document-register.xlsx>)

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.

-   [JCT contract families](<https://www.jctltd.co.uk/category/contracts>)
-   [NEC contracts](<https://www.neccontract.com/products/contracts>)
-   [FIDIC contracts](<https://fidic.org/bookshop>)

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