Surety Bonds for Maintenance Bonds
What are Maintenance Bonds?
A maintenance bond is a surety bond that a contractor may be required to purchase in order to ensure that any defects that come about after the project is completed are maintained and repaired or to compensate the owner if a defect does occur. Also known as a warranty bond, it ensures that the maintenance of the project will be upheld during the maintenance period, which is usually 1 year from completion or acceptance of the maintenance bond. If, by some chance, the contractor is unable to correct the defect or is not in business, the owner has a source of compensation through the surety, who will pay for the maintenance and then seek compensation from the contractor.
Although not usually required, a maintenance bond can be requested by the owner of the project. It is estimated that maintenance bonds make up less than 5% of annual bonding. Yet, they are often required in public construction projects. They also can prove to be quite tricky, because it may be tough to determine who is at fault for the defect. Although the work specified could be anything required in the bond, it usually consists of repairing substandard construction or installation, whether due to workmanship or materials. They are usually used in conjunction with performance and payment bonds.
What does a Maintenance Bond cover?
It ensures that any defects that come about after the project is completed are maintained and repaired or to compensate the owner if a defect does occur.
Is a maintenance bond required for all construction projects?
It is not always required, but may be requested by the owner of the project.
Get a Maintenance Bond today!
1) Fill out the form on our website – this takes 30 seconds of your time and we will get back to you with a quote in less than 24 hours (oftentimes within the hour).
2) Call us directly at 781-559-0568 – we are here to help!