A maintenance bond, as the name suggests, is a bond that contractors need to have to provide project owners a guarantee that any defects in their work, after the project is completed, will be taken care of by the contactor.
If the contractor fails to meet the guidelines of the bond or if there are faults, the project owner will be compensated through a maintenance bond.
How It Works
Typically,there are three parties involved:
- The entity that is required to obtain the bond.
- The obligee is the entity that requires the bond. It is either the State government or the project owner.
- The surety agency is the entity that issues the bond. They are professional underwriters who take care of all the legal details. The terms of the bond are determined by the ordinance covering the contract.
Cost of Maintenance Bond
Costs of maintenance bonds depend on a wide variety off actors. These factors might include;
- Your credit report,
- Financial statement,
- Business resume,
- Evidence of experience in the industry, etc.
Generally, maintenance bonds cost around 1 percent to 4 percent of the total bond amount.
BondPro – A Reliable Surety Bond Agency
We understand that mishaps can happen in construction projects, which is why it is very important that the project owner – the taxpayer – stays protected. A maintenance bond does just that.
Not only does it ensure that the contractor is meeting state regulations, it also provides project owners with peace of mind.
We at BondPro are a surety bond agency that provides maintenance bonds across all 50 states in the United States.
With over 60 years of combined experience, our underwriters have incredible attention to detail. We take care of all the legal matter and ensure that the bond is accurate.
We have worked in the industry for quite some time now. This has helped us build relationships and provide the best rates possible.
Our maintenance bond agents ensure that you get the bond as quickly as possible. This is to ensure that your construction project gets underway without any hassles.
Obtaining a maintenance bond with us is simple. Here’s what you do:
- You contact our team through phone or email. Our team provides maintenance bond quotes.
- If you agree, you provide us with the relevant documents and fill out the application form.
- Once we have all the details, we start working immediately. We issue the bond within days.
Have any further questions regarding maintenance bonds? Contact us through phone or visit our office. Our team will guide you through all the details. Our team can also provide guidance and advice. Our goal is to ensure that you make an informed decision.