Early Release of Retainage Bond

[harder]

Can someone advise as to availability of obtaining a bond to get our retainage released early including approximate rates per thousand? Also, please provide sample bond language if you have one.

[Admin]

You need to provide more specifics on your situation. Your retainage from what?

[harder]

Our contracts typically have a 10% retainage which can only be released at substantial completion. The purpose of the bond would be to provide the client with security since they are providing the retainage in advance of substantial completion. The concept is similar to that of a lien bond. I believe I can obtain the sample bond language. Do you have a market that will issue this?

[Admin]

The industry as a whole has been shying away from financial guarantees like this. We don't have a market for this and you aren't likely to find one.

Sorry...

[harder]

Not sure I agree considering that I can get a lien bond right now from a carrier based on underwriting factors. I do appreciate that this is a financial guarantee. I am speaking to our carrier about the early release of retainage bond but was hoping you might have an alternative given their rates. I also want to start proposing bonds in lieu of retainage for future jobs. Again the issue is rate and cost benefit of having the money up front versus bond premium. I can provide the bond language if you like. I think there is a real opportunity here.

[Admin]

We can look into it further if you have the bond language. However, I would venture to guess most carriers are going to want collateral, which would defeat the purpose of the bond.

...but the only way to find out is to apply.


You can create a broker account for yourself at: JW Surety Bonds - Commercial Bond Applications


From there, you will be able to add prinicipals to your account.