Most contractors understand the bonds that get them onto a project. You bid, you post a bid bond, you win the work, you provide a performance bond, and you build. But there is one more bond that often shows up right at the finish line, just when you think the bonding is behind you: the maintenance bond. It is the one that quietly guarantees your work after the ribbon is cut.
A maintenance bond, also called a warranty bond, protects the project owner from defects in workmanship or materials that surface after the job is complete. If you do public works or larger commercial contracts, you have likely seen it written into the specs. If you need one to close out a project, call us at 800-333-7800 or request a free quote online. We have been bonding contractors in all 50 states since 1971.
What a maintenance bond covers
A maintenance bond guarantees that you will come back and fix qualifying defects during a set warranty period after the project is finished and accepted. If a roof you installed starts leaking, a concrete slab you poured cracks prematurely, or materials fail within the covered window, the owner has assurance the problem gets corrected without coming out of their own pocket.
Like other surety bonds, it involves three parties. You are the principal, the contractor standing behind the work. The owner or public agency is the obligee, the one being protected. The surety is the company backing the guarantee. The bond is a promise that your finished work holds up, and that you will stand behind it if it does not.
How long does the coverage last?
The warranty period is set by the contract, and it usually runs one to two years after the project is accepted. Some public works and specialized projects stretch the term longer, three to five years is not unusual for certain infrastructure, and a few high-performance systems carry even longer warranties. The exact term is whatever the project documents specify, so it pays to read that section closely before you sign.
Maintenance bond vs. performance bond: the key difference is timing
This is where contractors most often get tangled up, so it is worth being precise. A performance bond covers the build itself. It guarantees you will finish the project according to the contract. The moment the work is done and accepted, that obligation has largely run its course.
A maintenance bond picks up right where the performance bond leaves off. It covers the period after completion, guaranteeing the quality of work that has already been delivered. Think of the performance bond as protecting the construction, and the maintenance bond as protecting the warranty. Many contracts require both, so the owner is covered from groundbreaking through the end of the warranty term. If you want a fuller picture of the construction bond family, our guide to the difference between a performance bond and a payment bond is a good companion read.
What a maintenance bond costs
Maintenance bond premiums are generally lower than the premium on a performance bond. The reason is straightforward: by the time the maintenance bond is in force, the hard part is over. The project is built and accepted, so the surety is guaranteeing upkeep on completed work rather than the risk of an unfinished job. Sometimes maintenance coverage is even included within the performance bond for an initial period, and a separate maintenance bond covers any term beyond that.
As with any surety bond, the actual rate depends on your credit, your experience, and the size and length of the obligation. Every project is different, so the best way to get a real figure is to call us at 800-333-7800 for a free, no-obligation quote.
How to get a maintenance bond
Getting bonded is usually quick, especially since the work is already complete. We will need the contract or specs showing the warranty term and required bond amount, along with basic information about your company. From there we match you with the right surety and issue the bond so you can close out the project cleanly. You can find more detail on our maintenance bond page.
Frequently asked questions
What is a maintenance bond in construction?
It is a surety bond that guarantees a contractor will fix defects in workmanship or materials that appear during a set warranty period after a project is finished. It is also called a warranty bond.
How is a maintenance bond different from a performance bond?
Timing. A performance bond guarantees you complete the project. A maintenance bond guarantees the quality of the finished work for a warranty period afterward. Many contracts require both.
How long does a maintenance bond last?
Whatever the contract specifies, most commonly one to two years after completion. Public works and specialized projects can run three to five years or more.
How much does a maintenance bond cost?
Premiums are typically lower than performance bond premiums because the work is already complete. The exact rate depends on your credit, experience, and the bond term and amount. Call 800-333-7800 for a free quote.
Do I need a separate maintenance bond if I already have a performance bond?
Often, yes. Some performance bonds include a short maintenance period, but if the contract requires warranty coverage beyond that, a separate maintenance bond is usually needed. Check your project documents.
Closing out a project? Let’s get you bonded.
A maintenance bond should be the easy last step, not a holdup at the finish line. Surety Bond Authority has helped contractors meet their bonding requirements for more than 50 years, and we can get your maintenance bond issued quickly. Call us at 800-333-7800 or contact us today for a free quote.
