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A bond is a written contract in which one party called the surety usually a bank or an insurance company agrees to guarantee the performance of another party the client to a third party called the beneficiary following a contract between the client and beneficiary.


Most construction projects have two phases – the construction period and the maintenance period/defects liability period.

At the end of practical completion of the project, the contractor is expected to remain available for a specified time period to remedy any defects that may appear.

Retention is money held by the employer/client to safeguard against defects which may subsequently develop and which the contractor may fail to remedy.

The money is usually released in full at the end of the maintenance period. In case the retention money is released early, a retention bond of similar amount will be required by the employer.

This bond therefore acts as a guarantee to the employer to cover cost of remedying defects in case the contractor does not carry out his duties satisfactorily during the maintenance period.

For assistance, contact our Customer Care teams on 0711-030140 and/or 0711-030105, email customercare@directline.co.ke or visit us at our various branches.

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