Replaces withheld retention money
Guarantees the project owner's defect-liability cover, so they can release the retention normally held back from your running bills.
Retention Money Bond · RMB-01
Get your retention money released early
A retention money bond replaces the cash a project owner withholds from your running bills with an IRDAI-backed guarantee covering the defect liability period.
0%
Cash margin for A+ credit profile
5–7 days
First-time issuance
0.5–3%
Annual premium
100+
Central Government procuring entities under GFR
At a glance
What this retention money bond actually does
Frees up cash held bill by bill
Retention typically accumulates as a percentage withheld from every running bill - this bond releases that cash immediately.
Covers the defect liability period
Stays live through the maintenance / defect-liability period defined in your contract, then is released.
How it works
The bond lifecycle
A clear path from the security requirement to release or claim.
Retention accrues
The project owner withholds retention money from your running bills as work progresses.
Bond issued
Assurety issues a retention money bond covering the withheld amount.
Retention released
The project owner releases the held-back retention against the bond instead of cash.
Runs through the DLP
Bond stays active through the defect liability period, then releases on satisfactory close-out.
Released at DLP closeThe real comparison
Retention Money Bond vs. bank guarantee
Look beyond headline commission to the capital impact, speed and effective cost.
| Metric | Retention Money Bond (Assurety) | Cash Retention / Bank Guarantee |
|---|---|---|
| Cash blocked | 0% for A+ credit profile | Retention withheld from every running bill |
| Headline cost | 0.5–3% p.a. premium | No direct fee, but a cash-flow cost |
| Effective cost | Premium only | Opportunity cost of retention blocked through the DLP |
| Cash flow impact | Retention released immediately | Retention locked until DLP ends |
| Regulatory standing | Market-standard contract bond; named in the historical 2022 taxonomy | Traditional default instrument |
Cash blocked
Retention Money Bond (Assurety)
0% for A+ credit profile
Cash Retention / Bank Guarantee
Retention withheld from every running bill
Headline cost
Retention Money Bond (Assurety)
0.5–3% p.a. premium
Cash Retention / Bank Guarantee
No direct fee, but a cash-flow cost
Effective cost
Retention Money Bond (Assurety)
Premium only
Cash Retention / Bank Guarantee
Opportunity cost of retention blocked through the DLP
Cash flow impact
Retention Money Bond (Assurety)
Retention released immediately
Cash Retention / Bank Guarantee
Retention locked until DLP ends
Regulatory standing
Retention Money Bond (Assurety)
Market-standard contract bond; named in the historical 2022 taxonomy
Cash Retention / Bank Guarantee
Traditional default instrument
Retention is one of the quietest drags on contractor cash flow - a bond gets that money working again instead of sitting with the project owner through the DLP.
Why Assurety
Built for how the requirement actually moves.
Fast issuance
Most retention money bonds are issued within 5–7 business days.
Zero margin, qualifying credit
BBB+ and above often need no cash margin at all.
Contract-specific wording
Matched to the retention percentage and defect liability period in your contract.
Covers the full DLP
Stays live for exactly as long as your contract's defect liability period requires.
Works alongside your performance bond
Run a retention money bond next to your performance bond on the same contract.
Contract document review
We confirm the exact retention terms and DLP length before issuance.
Adoption
Accepted at meaningful scale.
3,300+
Surety bonds issued in India (industry estimate)
₹29,000 Cr+
Estimated value issued in India
₹10,000+ Cr
Issued via NHAI alone
Market standard
Named in the historical 2022 IRDAI taxonomy
Government and private project owners can be obligees, subject to applicable procurement rules and contractual terms. We confirm the accepted format for each contract before issuance.
Industries
Where this bond gets used.
01
Construction
Retention held on CPWD / PWD works contracts through the DLP.
02Infrastructure
Multi-year NHAI & metro contracts with long defect-liability periods.
03Energy
Retention on EPC contracts through commissioning and DLP.
04Manufacturing
Retention on supply-cum-installation contracts.
05IT & Technology
Retention on GeM systems-integration and AMC-linked contracts.
Eligibility
What you need to qualify.
Underwriting considers the business, its credit position and the underlying obligation.
Requirement 01
Entity type
Pvt Ltd, Public Ltd, LLP, partnership or proprietorship
Requirement 02
Credit check
Corporate CIBIL mandatory; rating drives terms
Requirement 03
Tenure
Bonds available up to 7 years
Requirement 04
Not a substitute for
Loan repayment or financial guarantees
Regulated placement
Bonds are arranged only through IRDAI-licensed insurers approved for surety business. The issuing insurer is confirmed before placement.
FAQ
Questions, answered.
Get retention money released on your project
Tell us about your requirement and we'll have an indicative quote ready promptly.
