Other Contract
Maintenance Bond
A construction bond that guarantees the contractor will fix defects in finished work during a warranty period.
- Required by
- Project owners, cities, and counties, especially on public works and subdivision improvements
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises the project owner that the contractor will repair defects in materials or workmanship that show up after completion. The period is set by the contract or local code, often one or two years. If the contractor will not make the repairs, the owner can claim against the bond.
Who needs it
- Contractors on public works
- Developers installing roads, water, or sewer lines a city will accept
- Subcontractors whose contracts call for a warranty bond
What the underwriter looks at
- Contractor's financial statements
- Work history and quality record
- Length of the maintenance period
- Bond amount as a share of the contract
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
Doesn't my performance bond already cover defects?
Many performance bonds include a one-year warranty. A separate maintenance bond is used when the owner wants a longer period or a separate bond after the performance bond is released.
How long does it last?
As long as the contract or local code says, often one or two years after acceptance. Some infrastructure projects require longer.
How much is the bond?
The contract sets it. Some cities require 100 percent of the construction cost and others a smaller percentage, such as 10 percent.