Nationwide Sureties is a leading provider of retention bonds for the construction industry. Retention bonds, also known as retention money bonds, are a type of construction bond that guarantees the return of retention money to the contractor. Retention money is a percentage of the contract value that is withheld by the principal (typically the employer or developer) from the contractor’s progress payments until the end of the contract or until defects have been rectified.
Retention bonds are typically required by the principal as a form of protection against contractor default. If the contractor fails to rectify defects, or if they become insolvent, the bond can be used to compensate the principal for any financial losses.
At Nationwide Sureties, we understand the importance of retention bonds in the construction industry. Our experienced team will assess the contractor’s ability to rectify defects and their financial stability before issuing a bond. We also typically require collateral, such as a letter of credit or cash deposit, to ensure that the contractor has the financial resources to rectify defects.
Obtaining a retention bond can be a straightforward process, but it is important to work with a surety bond company like Nationwide Sureties that has the experience and reputation to provide the bond that contractors need to secure their project. Our team of experts will guide you through the process of obtaining a retention bond and answer any questions you may have.
In summary, retention bonds are a critical aspect of the construction industry. They provide financial protection for both contractors and the principals of the construction projects, ensuring that the retention money is returned to the contractor in case of default. Choosing the right surety bond company is important to ensure that you have the right bond in place to protect your construction project. Nationwide Sureties, with our experienced team and financial stability, we are able to provide retention bonds for the construction industry, Contact us today to learn more about our retention bond services and how we can help you with your next construction project.
