Retention guarantees and bank guarantees in Moroccan construction: what you need to know

On a construction site in Morocco, invoicing is never just "issuing an invoice." Both public and private works contracts almost always come with guarantee mechanisms meant to protect the project owner against defects or non-performance. Understanding them is essential to invoicing correctly and avoiding unpleasant surprises at the end of a project.

What is a retention guarantee?

A retention guarantee is a percentage (typically 7 to 10%) withheld from every progress statement or invoice issued by the contractor, kept by the project owner until the site's warranty period ends. It covers any repairs or defects found after handover. The withheld amount is released to the contractor once that period passes, barring a dispute.

Bid bonds, performance bonds and retention-guarantee bonds

In public tenders especially, three types of bank guarantees accompany a project: the bid bond (guarantees the seriousness of the tender offer), the performance bond (guarantees proper execution of the contract, often 3 to 5% of its value), and the retention-guarantee bond, which lets the contractor obtain immediate release of the amounts normally withheld by substituting a bank guarantee for the cash retention.

How this ties into invoicing and the final settlement

Every progress statement must clearly separate the gross amount, the retention guarantee applied, and the net payable. At the end of the project, the final settlement (DGD) sums up every amount due and withheld over the life of the contract — a document that must match your complete invoice and retention history, or reconciling it becomes a real headache.

Why the right tool changes things

Tracking these amounts on a spreadsheet quickly becomes risky: one forgotten retention line on an invoice, one bond deadline that slips by, and the project's cash flow takes the hit. A Construction Sites module that automatically links the retention guarantee to every invoice, and a Public Tenders module that centralizes your bank guarantees, keep a reliable picture of what's actually available at any time.