Newsletter
PERFORMANCE BONDS MAY BE RELEASED ACCORDING TO PROJECT PROGRESS
According to a PCC letter ruling dated 28 Sep-tember 2001, for a construction project with a value above certain threshold, the contractor may request in writing for release of performance bond in equal four installments according to the work progress. However, the contract should be amended before the release take place. When a contract includes retention money clauses, if the contractor provides a retention bond in the same amount and meets similar requirements as those governing advance payment bonds, the procur-ing entity do not have to retain money from the progress payments, and monies already retained should be released without interest.