Maintenance Bond Guide
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Why do you need a maintenance bond?
You need to obtain a bond for performing work on public projects. If your workmanship is not free of defects for the specified period of time after it is completed, a claim can be filed on your bond.
We have the industry standard bond forms on file. If a special bond form is required, you need to obtain it from the obligee.
No. Only one application is needed. Our contract applications are on our website and you can get approvals for maintenance and performance bonds online.
No. The bond must be paid in full. Most surety companies do not offer financing on bonds.
It is used as a guide to how you may handle future obligations. A bond is a form of credit provided to you by the surety company. Therefore, the surety reviews your credit history to assess your likelihood to cause bond claims and your ability to pay them.
12, 18, or 24 months are the typical term lengths. Maintenance terms longer than 24 months are usually too lengthy for a surety to approve.
If there are problems with your workmanship during the warranty period that goes uncorrected, a claim will be filed on the bond which you are responsible to reimburse.
Surety Bonds do not protect you
The bond is a form of insurance for your clients, which is why many businesses proudly list that they are bonded on their marketing material. However, you will be required to reimburse the bonding company should a claim be paid out.
Fidelity Bonds protect your business
You can protect your business from employee theft and fraud by purchasing a fidelity bond. You can read more in our fidelity bond section.
What's your bond cost?
Bond costs vary by applicant, bond amount, bond type & the agency you choose. You can get a general idea of costs using our Quick Estimate tool to the right or an exact quote instantly online!
Get the lowest rates
There are many things you can do to encourage bonding companies to offer you discounted rates. We can advise you on how to maximize your bond lines and minimize your bond costs. Contact us today for a free consultation.
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