Maintenance Bond

Bond Penalty: Based on total value of maintenance contract

A maintenance bond is type of performance bond guarantee that ensures ongoing maintenance of a particular project, site or equipment. A performance and payment bond package generally offers a one year guarantee of materials and workmanship. A maintenance bond may be required where either a longer maintenance term is contemplated by the project owner, for those projects that did not require surety bonding guaranteeing completion or where and existing property site, critical infrastructure or equipment must be maintained long-term. Less often albeit far too common, a project owner may have serious concerns about design or another defect that was unknown or undetected during the performance/payment bond guarantee period and seeks to mitigate its risk with bonding. Being highly risky and obviously subject to adverse selection, surety companies rarely enter in to agreements to bond contracts where a critical defect has been identified.

In the case of construction projects, a maintenance bond is a sort of workmanship and/or material quality insurance policy. The obligation is essentially a warranty bond. Where an owner seeks bonding of a contract to maintain a site such as a public park, rest area, water runoff systems, landscaping and similar properties, a maintenance bond is a performance bond for commercial services. Other common examples of work requiring ongoing maintenance are those contracts offered by public entities, utilities, computer and server providers and owners of equipment that is part of critical infrastructure. The maintenance bond ensures that the maintenance contractor will fulfill the provisions of the agreement for the term (number of years or months) specified in the contract.

Performance bond leader, Surety One, Inc. is an experienced underwriter of contract surety bonds. We provided unmatched support of your maintenance bond need, based on our knowledge about the industry and our focus on our personal relationship with maintenance operators. We offer quick review and response to your surety bond request in a polite, clear way. Call us at (800) 373-2804, email Underwriting@SuretyOne.com or click here to chat with an underwriter.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.

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