Legal analysis: on June 20, 2017, the Ministry of Housing, Urban-Rural Development and Construction and the Ministry of Finance issued the Circular on the Issuance of Measures for the Administration of Quality Guarantee Deposits for Construction Projects. Construction project quality guarantee deposit refers to the funds that the contractor and the contractor agree in the construction project contract to reserve from the project payment payable to ensure that the contractor repairs the defects of the construction project during the defects liability period. The defects liability period is generally 1 year, with a maximum of 2 years, as agreed by the contractor and the contractor in the contract. During the defects liability period, if the contractor is withdrawn, the security deposit is transferred to the management of the user unit along with the assets delivered for use, and the user unit will perform the duties of the contractor on behalf of the contractor. If the social investment project adopts the method of reserving the security deposit, the issuing and contracting parties may agree to hand over the security deposit to a third-party financial institution for trusteeship. The contractor shall reserve the security deposit in accordance with the contractual agreement, and the total percentage of the security deposit reserved shall not be higher than 3% of the total amount of the settlement of the project price. If the contractual agreement is that the contractor shall replace the reserved security deposit with a bank guarantee, the amount of the guarantee shall not be higher than 3% of the total amount of the settlement of the project price.
Legal basis: "the Chinese people's *** and the state construction quality guarantee management measures" article 7 the contractor shall be in accordance with the contractual agreement to reserve deposit, the total deposit shall not be higher than 3% of the total amount of the settlement of the project price. The contract agreed by the contractor to the bank guarantee instead of reserve deposit, the amount of the guarantee shall not be higher than 3% of the total amount of the settlement of the project price.