Construction Guarantees

Retention Guarantee

Protection for project owners against defective work for a certain period after project completion.  

Our Retention Guarantees are an alternative to cash-retention practices to ensure contract-specified, high-quality materials and work. 

Benefits of a PCBS Retention Guarantee:

  • Removes the need for a retention fund.  
  • Compensates project owners for defective work. 
  • Promotes accountability and project quality. 

Apply for a PCBS Facility or Guarantee in 2 steps:

  1. Download and complete the relevant application form
  2. Email the completed form and all supporting documents to your broker or to info@pcbs.co.za
Retention Guarantee Facility
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Retention Guarantee
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FAQs

A Performance Guarantee is usually 5% or 10% of the contract value. Get a personalised premium estimate for your guarantee in seconds.

  • PCBS prepares a guarantee quote within 24 to 48 hours of you submitting the required documents.  
  • A draft guarantee is ready 24 to 48 hours after you’ve submitted the required documents. 
  • An original guarantee is issued 24 hours after receipt of your proof of payment. 

The most common Construction Guarantees are Performance Guarantees, Retention Guarantees and Advance Payment Guarantees.  

  • Performance Guarantee: a contractor’s financial commitment to meet defined performance standards. 
  • Retention Guarantee: financial protection against defective work for a certain period after project competition.  
  • Advance Payment Guarantee: ensures the project owner is reimbursed if the contractor fails to perform after receiving an upfront payment. 

The minimum premium for a PCBS guarantee is R5 000.00 (excluding VAT and fees).  

The minimum guarantee policy period is 6 months, and the maximum period is 36 months (including a maximum maintenance period of 12 months).  

Protect your projects fast

Our quick turnaround times ensure you can confidently start your projects within days of applying for PCBS guarantees and facilities.

24 to 48 hours*

For quotes

24 to 48 hours*

For drafts

24 hours**

For original guarantees

*Once all required documents have been received  

**On receipt of proof of payment  

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