Chapter 7 Releasing security
Normally, the contract will provide when the security is to be released. Generally, contracts will provide that half is released on practical completion and the balance on final completion.
A contractor may also require that security is released if the contract is terminated for the principal’s breach or insolvency.
A principal may require an entitlement to retain security where it has notified the contractor of defects during the defects liability period and the defects have not been rectified or there are other unresolved disputes.
Where security has been provided for unfixed materials, the security will normally be due for release when the materials are incorporated into the works.