Your contract security is a bank guarantee rather than cash retention

The release request describes the wrong thing

A hypothetical subcontractor requests payment of retention after a project milestone. The project file shows a bank guarantee was supplied instead of the amount being withheld in cash. Before repeating the payment demand, identify exactly what security is held and what release is being sought. The commercial objective may be similar, but the documents and practical steps can differ.

Find the original security record

Collect the contract, instrument details, issuing institution's correspondence and any acknowledgement from the recipient. Confirm the amount and project reference. Do not assume a ledger description called retention proves cash was deducted. Ask the accountant to explain the record and identify any separate cash retention that may also exist.

Review the release provisions

Business.gov.au recommends clear contract obligations and payment terms. Have the relevant security and release provisions assessed with the actual instrument. This article does not prescribe how a guarantee is cancelled or determine whether a release condition has been met. Ask the lawyer and issuer what evidence and process apply to the particular arrangement.

Source: business.gov.au: Prepare a contract

Make the request specific

In the hypothetical example, identify the instrument and the contractual event said to support release. Provide the relevant completion evidence without assuming a certificate resolves every condition. Ask the recipient to explain any outstanding requirement. Avoid requesting a cash transfer merely because an internal report uses a dollar amount to describe the security.

Check the issuer's confirmation requirements

If the recipient agrees to release the instrument, ask what the issuer needs to complete its process. Do not assume a returned copy or informal email automatically ends every obligation or associated cost. Retain the actual confirmations and have uncertainties reviewed. Keep any proposed replacement security distinct from a completed release.

Update the records only when supported

Give accounts the verified outcome and retain the security history. CRP can help organise the commercial release file. The useful first step is to identify what was provided and what must now happen, rather than treating every retention entry as money waiting in another party's bank account.