Maintenance Bonds

The current industry standard cost of a maintenance bond varies and is usually set by the project owner. The contractor will pay only a small percentage of this total bond amount as the premium or overall cost of the maintenance bond. A general breakdown of these percentages is below:

• 0.25% - 1.5% for good financial standing: This is a generally accepted range for contractors that are deemed well-qualified.
• 0.25% - 0.5% with a performance bond: A bundled performance and maintenance bond will typically result in lower rates.
• 0.75% - 1.5% for stand-alones: Rates can be higher when a maintenance bond is required as a stand-alone, due to the specific risk profile.

The surety assesses each applicant on a case-by-case basis based on credit history, financial health, and other variables. SBP's surety agents act as your long-term strategic partners, advocating to secure good rates and manage your financial standing.

A construction maintenance bond typically covers a period of 12, 18, or 24 months after a project's completion. It guarantees that the project owner won't have to cover any potential repair costs if any defects are found. This coverage can be extremely beneficial for risk assurance in public works projects, especially when combined with performance bond options.

For our long-term partners, integrating maintenance bonds into a project strategy demonstrates a commitment to quality. It also bolsters your company's perception among project owners, as a strong reputation for quality work often leads to other project opportunities.

Protecting a completed project can be just as important as the project itself. Maintenance bonds for construction companies protect project owners from defective materials and poor workmanship. For contractors, this means protecting your reputation and income potential.

SBP is a family-owned business with over 100 years of experience. We use our expertise to cultivate growth partnerships and help contractors navigate complex bonding requirements.

Construction projects are complex and require meticulous attention to detail. Working with a transactional broker when applying for maintenance bonds limits your potential to take on lucrative projects. Our dedicated surety agents consider your long-term goals and take a consultative approach to understand your business.

We leverage our relationship with over 40 different surety markets to reduce risk and support contractors based on their specific goals.

SBP looks beyond the limitations of one-off transactions, focusing on your company's long-term growth. Through clear communication and efficient service, we ensure you always know where you stand in the bonding process. Our agile, quick response to your evolving needs helps secure the right maintenance bond bid for your goals.

Are you ready to build a strategic bonding program with a dedicated surety agent? Contact Surety Bond Professionals for your complimentary bonding review or to discuss your next maintenance bond bid for construction projects.