The Retention Bank Guarantee is a crucial document in Dutch construction and infrastructure projects, replacing the traditional mechanism of withholding a percentage of progress payments as security for defects or incomplete work. This type of guarantee, governed by Dutch law, enables contractors to receive full payment while providing employers with equivalent security through a bank's undertaking. The document typically amounts to 5-10% of the contract value and remains valid throughout the defects liability period. The Retention Bank Guarantee must comply with Dutch banking regulations and civil code requirements, particularly regarding independent guarantees and demand requirements. It's commonly used when contractors prefer to avoid cash retention and can obtain banking facilities, offering a more efficient solution for project security.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership of your docs
Alternatively...
1. Bank Details and Reference: Bank's details, guarantee reference number, and date of issuance
2. Beneficiary Details: Full legal name and address of the party receiving the guarantee (typically the employer/client)
3. Principal Details: Full legal name and address of the party requesting the guarantee (typically the contractor)
4. Underlying Contract Reference: Details of the main construction contract including contract date and project reference
5. Guarantee Amount: The specific sum guaranteed, both in figures and words
6. Purpose of Guarantee: Statement explaining this is a retention money guarantee and its specific purpose
7. Claim Conditions: Specific conditions under which the beneficiary can make a claim
8. Validity Period: Start and end dates of the guarantee, including any automatic extension conditions
9. Claim Procedure: Step-by-step process for making a claim under the guarantee
10. Governing Law and Jurisdiction: Specification of Dutch law as governing law and relevant jurisdiction
1. Reduction Clause: Optional clause specifying if and how the guarantee amount can be reduced over time, used when stepped reductions are agreed
2. Transfer Provisions: Clause addressing whether the guarantee can be transferred to another beneficiary, included when project transfer is possible
3. Multiple Beneficiaries: Additional provisions for cases where there are multiple beneficiaries, used in joint venture projects
4. Counter Guarantee: References to any counter-guarantee arrangements, included when involving multiple banks
5. Language Provisions: Provisions regarding official language and translations, used when parties are from different countries
1. Form of Demand: Template for making a claim under the guarantee
2. Copy of Underlying Contract Extract: Relevant extract from the main contract referring to retention requirements
3. Authentication Details: Specific requirements for authenticating claims and communications
4. Bank's Standard Terms: Standard terms and conditions of the issuing bank applicable to guarantees
5. Contact Details Schedule: List of authorized contacts and addresses for notices for all parties
Authors
Find the document you need
Bank Guarantee Draft
A Dutch law-governed bank guarantee template establishing a bank's commitment to pay a specified sum to a beneficiary under defined conditions.
Download
Performance Bond Guarantee
A Dutch law-governed guarantee instrument where a financial institution guarantees a contractor's performance obligations to a beneficiary.
Download
Cash Bank Guarantee
A Dutch law-governed bank guarantee document where a bank commits to pay a specified sum to a beneficiary upon demand, subject to stated conditions.
Download
Down Payment Bank Guarantee
A Dutch law-governed bank guarantee securing advance payments made by a buyer to a seller, providing financial security for upfront payments in commercial transactions.
Download
Financial Bank Guarantee
A Dutch law-governed bank guarantee document providing the bank's commitment to pay a specified sum to a beneficiary upon default of the principal's obligations.
Download
Deposit Guarantee
A Dutch law-governed agreement establishing a guarantee for deposited funds, detailing terms, conditions, and claim procedures in compliance with Dutch financial regulations.
Download
Surety Bond Bank Guarantee
A Dutch law-governed bank guarantee document establishing the bank's obligation to pay a specified sum to a beneficiary upon demand, securing the principal's obligations.
Download
Open Ended Bank Guarantee
A Dutch law-governed bank guarantee providing an indefinite financial security commitment from a bank to a beneficiary, subject to specified demand conditions.
Download
Advance Payment Guarantee Bond
A Dutch law-governed bank guarantee securing advance payments made to contractors, protecting the paying party against non-performance.
Download
On Demand Bank Guarantee
A Dutch law-governed bank guarantee providing for unconditional payment upon compliant demand, establishing the bank's independent payment obligation to the beneficiary.
Download
Bank Endorsement Letter
A formal banking document under Dutch law confirming financial arrangements or commitments, issued by a bank to endorse specific transactions or client capabilities.
Download
Advance Payment Guarantee Letter
A Dutch law-governed bank guarantee securing advance payments in commercial transactions, protecting the buyer's prepayment against supplier default.
Download
Retention Bank Guarantee
A Dutch law bank guarantee document replacing retention money in construction projects, providing security to the employer while improving contractor cash flow.
Download
Conditional Bank Guarantee
A Dutch law-governed bank guarantee document where payment is contingent upon specific conditions being met, providing financial security in commercial transactions.
Download
Bank Guarantee Performance Bond
A Dutch law-governed bank guarantee securing performance obligations of a contractor/supplier, providing financial security to the beneficiary through an independent bank commitment.
Download
Performance Letter Of Guarantee
A Dutch law-governed bank guarantee securing the performance obligations of a contractor, providing financial security to the project owner in case of contractor default.
Download
Standby Letter Of Credit
A Dutch law-governed bank guarantee instrument that provides payment assurance to a beneficiary upon specified conditions.
Download
Irrevocable Letter Of Guarantee
A Dutch law-governed financial instrument providing an unconditional and irrevocable payment guarantee from a bank to a beneficiary upon specified conditions.
Download
Bid Bond Tender Guarantee
A Dutch law-governed financial guarantee issued by a bank/insurer to secure a bidder's obligations in a tender process.
Download
Bank Guarantee Letter
A Dutch law-governed bank undertaking to pay a specified sum to a beneficiary upon specified conditions, serving as a financial security instrument.
Download
Bank Letter Of Comfort
A Dutch law-governed document issued by a bank providing non-binding assurance regarding support for a specified entity's financial obligations.
Download
Genie’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your data is private:
We do not train on your data; Genie’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
