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What Is a Maintenance Surety Bond?

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A Maintenance Surety Bond is a warranty or guarantee. It protects the owner of a payment and performance contract or construction project that either is already completed or about to be completed. The bond provides a warranty for defective labor or workmanship, faulty materials, and design if the project was done improperly or incorrectly. The bond will ensure that the contractor will perform the required tasks through repair, replacement or correction of the defect or financially compensate the owner of the project if those options are not available.

Maintenance Surety Bond:

A maintenance surety bond has 3 parties involved:

  1. A contract owner- is the obligee (the person or entity requiring the bond),
  2. The contractor- is the principal (you or the company you represent),
  3. And the surety- which is usually an insurance company.

The surety guarantees the performance of the contractor (principal), and if the contractor does not fulfill his contractual obligations, the surety may have to pay the contract owner or complete the work themselves. The surety will then seek remedy from the contractor for the loss that was caused.

The maintenance surety bond amount is usually 100% of the contract amount and covers a period of time (usually 12 to 24 months) after the work is completed for maintenance issues. Many contract owners are governmental entities and they often require a maintenance bond and a final inspection before they will release the bond.

Contract owners may have their own bond form which usually includes the maintenance requirements, the amount of the bond (penal sum), the period of time the bond will cover, and bond enforcement. The maintenance bond form language must be acceptable to the surety, and in instances where the project owner does not have a bond form, the surety can provide a generic bond form.

At the end of the bond term, the maintenance responsibility is then usually assumed or transferred to the contract owner.

There are many examples of maintenance surety bonds available for general improvements, erosion and sediment control, subdivision infrastructure improvements, highway restoration, new build projects and more available on the internet.

Examples of Maintenance Bonds:

  • City of Carrollton TX
  • City of Melbourne Florida
  • Town of Nolensville TN
  • Butler County OH
  • State of Pennsylvania
  • How Much Will This Bond Cost?

    The premium that you pay for a Maintenance Surety Bond will vary in cost and will be dependent on factors including the amount of the bond, the original amount of the contract, the bond language and personal and business financial statements.

    To apply for a Maintenance Bond UNDER $250K, please fax these completed forms to 404‑351‑3237.

    More Surety Bond Questions?

    Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.


    For a downloadable application