Subsection 1: Retention period

The sole purpose of the guarantee deduction is to cover reservations made on acceptance of the contract and, where applicable, those made during the guarantee period when the defects were not apparent or their consequences were not identifiable at the time of acceptance.

The amount of the guarantee deduction may not exceed 5% of the initial amount of the contract plus, where applicable, the amount of any amendments made during performance. For public contracts entered into by the State and a small or medium-sized enterprise mentioned in article R. 2151-13, this rate is 3%.

The retention is deducted in instalments from the payments on account, the partial final payments and the balance. In the event that the amount of the sums owed to the contractor does not allow the deduction of the guarantee deduction, the contractor is required to provide a first demand guarantee in accordance with the procedures set out in sub-section 2 of this section. The second paragraph does not apply to…

Where the contract provides for a retention of guarantee, this shall be reimbursed within thirty days of the date of expiry of the guarantee period.However, if reservations have been notified to the creditor during the guarantee period and if they have not been removed before the expiry of this period, the retention of guarantee shall be reimbursed within thirty days of the date of their removal.