Provisional Acceptance Deduction

The amount deducted at a particular rate from the contractor's progress payments and blocked by the contracting authority, or taken in the form of a letter of guarantee, in works contracts, in order to secure the remedying of deficiencies that may arise at the provisional acceptance of the work. This deduction is a security mechanism for ensuring that incomplete manufacture or defects arising at provisional acceptance are remedied. It is returned after approval of provisional acceptance where there are no deficiencies, and, where there are, after they have been made good.