Retention Guarantee – Secure Project Completion & Payments | NNRV Trade Partners

🔹 What is a Retention Guarantee?

A Retention Guarantee is a financial instrument issued by a bank or financial institution that ensures the release of retained funds to a contractor or supplier before the defect liability period ends. It serves as a substitute for the retention money that project owners typically hold back to cover potential defects or incomplete work.

By securing a Retention Guarantee, contractors can improve cash flow while assuring project owners that any defects or performance issues will still be addressed.

📢 A Retention Guarantee is essential for businesses engaged in construction, infrastructure, and large-scale projects, ensuring faster access to withheld funds while maintaining contractual security.

📌 How Does a Retention Guarantee Work?

1️⃣ Contractor Completes Work – The contractor reaches a milestone or completes a project, but the project owner holds back a percentage (typically 5-10%) of the contract value as retention money.
2️⃣ Retention Guarantee Issued – Instead of waiting months or years to receive the retention funds, the contractor obtains a Retention Guarantee from a bank and submits it to the project owner.
3️⃣ Immediate Release of Retained Funds – The project owner releases the retained amount, allowing the contractor to access liquidity while the Retention Guarantee remains as security.
4️⃣ End of Defect Liability Period – If no claims are made during the agreed defect liability period, the Retention Guarantee is canceled or returned to the contractor.

✅ Result: Contractors gain immediate access to withheld funds, while project owners retain security against potential defects.

🔍 Key Features of a Retention Guarantee

✔ Ensures Financial Security – Project owners remain protected against potential defects without holding back contractor payments.
✔ Releases Locked-Up Cash – Contractors receive their withheld retention funds immediately, improving their cash flow and liquidity.
✔ Compliance with Contract Terms – Satisfies contractual obligations without financial strain on the contractor.
✔ Flexibility & Customization – Tailored to specific project requirements, covering different defect liability periods.
✔ Issued by Reputable Banks – Ensures trust and compliance with international financial standards.

🛠 Who Needs a Retention Guarantee?

✔ Construction & Infrastructure Companies – Required for roadworks, bridges, buildings, and other public or private sector projects.
✔ Engineering & Manufacturing Firms – Essential for industrial projects where payments are retained for quality assurance.
✔ Oil & Gas Industry – Ensures timely payments in complex pipeline, drilling, and energy projects.
✔ IT & Technology Service Providers – Covers performance-based contracts where clients withhold payments for system testing.
✔ Equipment & Machinery Suppliers – Used in procurement contracts where clients retain payments until full functionality is confirmed.

🔹 Benefits of a Retention Guarantee for Businesses

✔ Improves Cash Flow – Contractors get access to funds that would otherwise remain withheld for months or years.
✔ Reduces Financial Pressure – Eliminates the need for contractors to finance operations while waiting for retention payments.
✔ Strengthens Business Credibility – Demonstrates financial strength and reliability to project owners.
✔ Encourages Faster Project Completion – Contractors can reinvest funds into ongoing projects rather than waiting for retention release.
✔ Ensures Trust Between Parties – Gives project owners security that any defects will be rectified, maintaining good business relationships.

📄 Required Documents for a Retention Guarantee

✔ Project Contract & Retention Clause – Document specifying the retention percentage and conditions for release.
✔ Company Profile & Trade License – Verification of the contractor’s business credentials.
✔ Memorandum / Articles of Association – Confirms the legal structure of the company.
✔ Audited Financial Statements (Last 2 Years) – Ensures financial stability and compliance.
✔ Credit Report & Bank Statements (6-12 Months) – Demonstrates financial health and ability to fulfill obligations.
✔ Retention Guarantee Application Form – Outlines the terms and amount to be guaranteed.

🏦 Our Partner Banks for Retention Guarantee Issuance

We collaborate with top-tier international banks to issue Retention Guarantees, ensuring secure transactions for both contractors and project owners.

🔹 HSBC Bank (Hong Kong) – SWIFT: HSBCHKHHXXX
🔹 BNP Paribas (France) – SWIFT: BNPAFRPP
🔹 Mashreq Bank (UAE) – SWIFT: BOMLAEAD
🔹 Standard Chartered Bank (Dubai) – SWIFT: SCBLAEAD
🔹 Bank of China (Hong Kong) – SWIFT: BKCHHKHHXXX
🔹 UOB Bank (Singapore) – SWIFT: UOVBSGSG
🔹 Credit Agricole (France) – SWIFT: AGRIFRPP

📢 All Retention Guarantees comply with ICC URDG 758 regulations.

💡 Why Choose NNRV Trade Partners for Retention Guarantees?

✔ Global Trade Finance Expertise – Tailored solutions to optimize cash flow and contract performance.
✔ Strong Banking Network – Secure Retention Guarantees from leading financial institutions.
✔ Fast Processing & Approval – Quick turnaround to avoid project delays.
✔ Comprehensive Risk Management – We ensure protection against default, non-performance, and defects.
✔ End-to-End Transaction Support – From issuance to compliance, we guide you through the entire process.

📢 Apply for a Retention Guarantee Today!

🚀 Unlock your retained funds and maintain project security with a Retention Guarantee from NNRV Trade Partners.

📩 Contact us now to get started with your Retention Guarantee application!