In the event of termination of the contract giving rise to entitlement to compensation, if the parties fail to reach agreement on the amount of compensation within six months of the date of termination, the contractor shall, at his request, receive the amount proposed by the purchaser.
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.
The holder of the contract may, throughout the term of the contract, substitute for the retention of guarantee a first demand guarantee or, if the purchaser does not object, a personal and joint guarantee.The purpose of this substitution guarantee is identical to that of the retention of guarantee which it replaces.
The substitution guarantee shall be drawn up in accordance with a model set by an order of the Minister for the Economy appended to this Code.
The substitute guarantee is constituted for the total amount of the contract, including modifications during performance.The amount of the substitute guarantee may not exceed that of the retention guarantee which it replaces.
Where the contract holder is a joint and several grouping, the substitution guarantee is provided by the authorised representative for the total amount of the contract.Where the contract holder is a joint and several grouping, each member of the grouping provides a substitution guarantee corresponding to the services entrusted to it. If the leader of the joint grouping is jointly and severally liable with each of the members of the…
In the event that the substitute guarantee is not set up or completed at the latest on the date on which the contractor submits the request for payment corresponding to the first instalment, the fraction of the retention guarantee corresponding to the instalment shall be deducted by the purchaser.When the substitute guarantee has been set up after the date fixed in the first paragraph, the amounts already deducted by way…
Our French business lawyers are here to help.
We offer a FREE evaluation of your case.
Call us at +33 (0) 1 84 88 31 00 or send us an email.
is a Registered Trademark of
PETROFF LAW FIRM (SELARL LEGASTRAT)
182, rue de Rivoli
75001, Paris France
RCS Paris n°814433470
Paris Bar Registration n° (Toque) C2396
is a Registered Trademark of
PETROFF LAW FIRM (SELARL LEGASTRAT)
182, rue de Rivoli
75001, Paris France
RCS Paris n°814433470
Paris Bar Registration n° (Toque) C2396
Resources
is a Registered Trademark of
PETROFF LAW FIRM (SELARL LEGASTRAT)
182, rue de Rivoli
75001, Paris France
RCS Paris n°814433470
Paris Bar Registration n° (Toque) C2396
Useful links
Our French business lawyers are here to help.
We offer a FREE evaluation of your case.
Call +33 (0) 1 84 88 31 00 or send us an email.
All information exchanged through this website will be communicated to lawyers registered with a French Bar and will remain confidential.
