Industry Guide
Retention Bond vs. Retention Release: How Subs Free Up Cash Tied in Retainage
Retention ties up 5-10% of every invoice a sub bills, sometimes for a year or more after the work is done. A retention bond lets the sub post a surety bond in exchange for release of the cash — the owner's protection shifts from cash to bond, and the sub gets paid now. The mechanics, costs, and judgment calls on when a retention bond is worth posting are the topics here.
Marcus Reyes7 min read