1, detained one by one, that is, the employer will detain the progress payment in proportion;
2. One-time detention, that is, the developer will detain the quality deposit at one time when the project is completed and settled.
In the absence of other agreements between the parties to the contract, the first method is applied in principle, that is, the project progress payment is detained one by one. This is also the most commonly used retention method of quality guarantee money for owners in practice. However, if the contractor has submitted the performance bond as agreed in the contract in practice, this conventional way of keeping the performance bond will conflict with the stipulation that the performance bond paid before completion and the project quality bond cannot be kept at the same time. Considering the legality, in the future, the employer should try to detain the quality deposit at one time when the project is completed and settled, or ask the contractor to submit a quality guarantee after the project is completed and accepted.
Legal basis: Interim Measures for the Management of Construction Project Quality Margin
Article 2 The term "construction project quality deposit" as mentioned in these Measures refers to the funds reserved from the payable project funds agreed by the employer and the contractor in the construction project contract to ensure the contractor to repair the defects of the construction project during the defect liability period. Defects refer to the fact that the quality of construction projects does not meet the mandatory standards, design documents and contract stipulations. The defects liability period is generally six months, twelve months or twenty-four months, which can be specified by both parties in the contract.
Article 10 After receiving the contractor's application for refund of the deposit, the employer shall check with the contractor within 14 days according to the contract. If there is no objection, the Employer shall return the deposit to the Contractor within 14 days after verification. If the deposit is overdue, the interest shall be calculated and paid according to the bank loan interest rate for the same period from the overdue date, and the employer shall bear the liability for breach of contract. If the Employer fails to reply within 14 days after receiving the contractor's application for refund of the deposit, and fails to reply within 14 days after the reminder, it shall be deemed as agreeing to the contractor's application for refund of the deposit. According to the regulations, instead of full payment, a certain percentage of quality deposit is withheld. According to China's civil laws and regulations, the proportion of detention can be freely determined through consultation, but it should not exceed 3% of the total project price, otherwise the detention process will be very complicated and interest will be paid.