Learn more about this type of bond, or contact our experienced surety agents
for assistance with any questions you may have.
Who Needs It?
Any contractor can be required by a project owner to purchase a maintenance bond as a condition for being awarded a contract, often in conjunction with a performance bond
. Maintenance bonds are typically required for public construction projects, though that decision is ultimately up to the project owner. They’re much less often required for private construction projects, but it is still possible.
These bonds guarantee that the project owner (the obligee) will not have to bear the cost of repairing or redoing work that does not meet the contractually required construction standards or state or local building codes. The problem may be the result of a materials issue, design issue, or poor workmanship.
The contractor (the principal in the bond arrangement) can only be held responsible for their own work, the work of their subcontractors, or their use of materials that did not meet the specifications included in the contract. For example, if the principal was not involved in the project’s design phase but simply executed a design provided by the project owner, the principal’s maintenance bond would not cover defects resulting from design flaws.