Highlights
- Provides owners with security during the maintenance period on completed projects for remediation of any workmanship or materials found not to be in accordance with the contract specifications
Best For
- Main contractors
- Sub-contractors
- Category: Contract
- Industry: Financial Institutions
- Group: International Group
Maintenance bonds are a form of performance bond relating to the maintenance (or warranty) period and are sometimes required by the owner of a construction project. They provide security to the owner for any defective workmanship or faulty materials which may be discovered following handover of the project and during the ensuing maintenance period, which is usually for 12 or 24 months. A maintenance bond is often issued in a lesser amount than the contract performance bond which it replaces.
