Maintenance bonds are meant to protect the new owner of a construction project against defects and various problems in design, workmanship, and the quality of materials used. Essentially, they provide assurance that the contractor may be held responsible for correcting or repairing any defects—or for compensating the owner in the case that such a matter does arise. The surety establishes a three-way contract in which the contractor surety company guarantees that the contractor agrees to pay a sum to the client if the contractor is unable to correct the task at issue.
As they are not required by law, maintenance bonds are not issued as frequently as other types of construction bonds. However, these bonds may be requested at the discretion of the project owner or client in order to guarantee the work for a set period of time following completion of the project.
Get protection against:
- Faults in workmanship
- Defects of design
- Problems that may arise as a result of the aforementioned
Factors that could influence costs include:
- The contractor’s credit and claims history
- The amount of coverage required
- The size of the job
- The contractual terms of the job
Maintenance bonds protect the property owner against problems that may arise during a finite period of time as specified in the contract. If a problem comes to light, the client may file a claim against the bond, and the contractor is required to address it or to pay adequate financial compensation up to the limit of the bond.
If you have any questions, call Contractor Surety today. Our experienced bond specialists are always on hand to help you determine the bonds that best suit your needs and the scope of your project.
If you know the scope of your project and are ready to start the process, simply fill out an application today.