Maintenance Bond

The maintenance bond guarantees that any faulty materials or defects in construction will be fixed. It provides assurance to the obligee (Project owner) that this will be rectified for a period of time after the project is completed. The maintenance bond usually runs one year after a project is completed.

Bond Cost

The bond cost is usually free for a one year maintenance bond if performance & payment bonds are purchased. If it is a two year maintenance bond, the second year will be charged. The bond cost is usually 1% of the bond amount.