Good evening to all. May I ask if the 10% retention fee previously withheld from a contractor can be released to him/her upon issuance of a retention bond amounting to 10% of the contract cost and a duly signed certificate of completion and acceptance by the municipal engineer and head of agency right after the completion of the project? Thank you in advance.
Technically it is not release but SUBSTITUTION. That is allowed. Just be mindful of the conditions.
Yes, just ensure that surety bond is valid one year after completion to cover the defects liability period.