THE ESSENTIALS
Before you start
- Release depends on the contract and applicable rules, not just completion of the works.
- Defect-correction obligations affect how the timing is read.
- Requesting release and receiving confirmation are different steps.
Article 295 distinguishes different situations
CCP Article 295 provides full release within 30 days after all obligations where there are no defect-correction duties; where those duties last up to three years, after that term. Longer terms have staged release. Paragraphs 4 to 7 are subject to the defect condition in paragraph 8.
These are different branches of the rule, not one countdown beginning at any event called 'completion'. Read the contract and establish the applicable milestone before calculating dates.
For paragraph 5's situation, the sequence is 30% at the end of year one, 30% in year two, 15% in year three, 15% in year four and the remaining 10% in year five. Establish the starting milestone and contractual and legal conditions before applying it.
Build an obligations calendar, not just an invoice list
Suggested working method: use one line for performance, another for the applicable acceptance documents and another for outstanding duties or defects. Record the document evidencing each milestone and who is following it.
Fictional example: the final invoice has been issued, but the file still contains an unresolved correction issue. Invoicing does not erase that calendar line. The example does not decide whether a defect justifies retaining the bond; that requires the contract's evidence and legal context. Once the relevant milestone is established, record the request to the competent entity and follow its response.
Releasing the guarantee is not refunding its amount as premium
Keep the guaranteed amount, premiums or charges paid and any costs continuing before formalisation separate. Releasing a guarantee for a particular amount does not mean receiving that amount as a premium refund.
When comparing the cost of maintaining or adjusting an insurance bond, request an explanation for the actual period and conditions. Do not close the accounting record on an expected response or represent a requested change as already effective.
Prepare the file for confirmation
For a Surety enquiry with RMACHADO, gather the obligation's identification and relevant procurement and performance documents through the appropriate channel. State whether you need clarification about maintenance, reduction or release.
This guide neither cancels a guarantee, confirms release nor resolves a performance dispute. Obtain legal analysis of any disagreement about timing, defects or documents. Insurance mediation should proceed on the circumstances actually established.
KEEP THESE QUESTIONS
Your checklist for the next conversation
- Identify the contract, bond purpose and guaranteed amount.
- Check outstanding obligations and the release regime.
- Gather the applicable acceptance and defect-correction documents.
- Obtain confirmation before treating the guarantee as closed.
FROM THE ARTICLE TO YOUR SITUATION
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Sources and transparency
Content updated on .
Consultation dates are stated in individual references when available.
Numerical examples are fictional and explain concepts. Editorial interpretations are identified in the text.
Information from RMACHADO GROUP. This is not an insurance offer or individual advice. Covers, acceptance, exclusions, sums insured and costs depend on the policy. The intermediary does not underwrite the risks.