Journal of Emerging Trends in Engineering and Applied Sciences: Research Areas

Article Title: Use Of Retention Bonds As An Alternative To Traditional Retention Fee Practices To Evaluate Public Projects Completion And Quality For Safe Closure: A Revisit
by Umar Garba, Prof. Ikechukwu A. Diugwu, Musa H. Danladi, Prof. Adindu Chinedu Chimdi

Abstract:
This study investigates the effectiveness of retention bonds as an alternative to traditional retention fee practices in evaluating public project completion and quality for safe closure in North-Central Nigeria. The aim is to assess the comparative impact of both financial mechanisms on project delivery outcomes such as quality, timeliness, and defect resolution. A descriptive research design was adopted. Data was collected from 384 construction professionals through structured questionnaires, with 361 valid responses received (94% response rate). The data was analyzed using descriptive statistics (mean, frequency, percentage, and rank) and inferential statistics (linear regression) to determine the effects of both retention systems. This study is geographically limited to the North-Central region of Nigeria. Further research could explore other regions or private sector projects for comparative analysis. The findings reveal that retention bonds have a more significant impact (89.8%) than traditional retention fee practices (69.5%) on public project delivery. Retention bonds enhance cash flow, minimize disputes, and ensure quicker completion and better contractor performance, while traditional retention often leads to payment delays and administrative burdens. The study emphasizes that retention bonds provide superior financial protection to clients and simultaneously improve contractors� financial health by freeing up working capital. Their adoption can streamline project execution and quality assurance. Wider adoption of retention bonds may reduce financial strain on contractors and subcontractors, preventing insolvency, project abandonment, and related social-economic consequences in the construction sector. This study contributes empirical evidence supporting the transition from traditional retention fee practices to retention bonds. It advances knowledge on how contractual financial tools influence project outcomes and proposes actionable policy recommendations for stakeholders in public infrastructure delivery.

Keywords: Construction Project, Public Project, Quality, Retention Bond, Safe Closure, Traditional Retention

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