Common use of Retention Bond Clause in Contracts

Retention Bond. We, understand that under the terms of your Contract (“the Contract”) with (hereinafter called “the ……………………………………………… entered into on ………………………………… you are retaining the sum of €……………………………. (say ) the Contract value by way of the second moiety of retention monies (“the Retention Monies”) and that you are prepared to release the said Retention Monies against a guarantee. In consideration of your releasing the sum of €………………………………….. to the Applicant, we ……………………………………… hereby guarantee the repayment to you on demand of up to €…………………(say ) in the event of the Applicant failing to fulfil the said Contract, provided that your claim hereunder is received in writing at this office accompanied by your signed statement that:-