Toll Free: 866-430-3322 7:30AM - 4:30PM MST
What is A Maintenance Bond
A maintenance bond is a contract bond, also known as a performance bond, that ensures contractors will complete work to the standards outlined in the agreement while following all state regulations and producing work that isn’t shoddy or insufficient. It also requires that all work or repairs needed on the project are completed by the contractor through a specific period of time. The specified time in which a contractor is legally required to fix any issues on the project will be outlined in the maintenance bond and if the contractor fails to oblige, the project owner can make a claim against the maintenance bond and the surety will pay what is owed to the claimant.
FAQs About Maintenance Bonds
How much are maintenance bonds?The cost of a maintenance bond depends on a combination of a few different things. Your personal credit history, financial credentials, bond and work history will always play a signifiant role in obtaining any bond. The size of the project and amount of coverage needed will be leading roles in deciphering how much the maintenance bond will cost as well.
What do maintenance bonds protect against?Maintenance bonds protect the owners of a project from a few different things. A maintenance bond will require the contractor of a project to make repairs and fix any shoddy work within a set period of time that is outlined in the original contract. They also protect the owner of a project against poor workmanship or faulty designs in the overall project.
Who needs to obtain a maintenance bond?Any contractor who has won a bid needs to obtain a maintenance bond. It provides the owner of the project a guarantee that the project will be completed to his/her standards as agreed upon in the initial contract. The maintenance bond is meant to protect both parties. The contract clearly states what is expected within the scope of the project; the owner cannot demand more than what is in the contract and the contractor cannot provide less.
How can I obtain a maintenance bond?This is the easy part. All you have to do is call The Surety Place and request a maintenance bond. We make the process as easy and seamless as possible for all of our clients because we know that this is one hurdle that can stop you from doing your job and running your business. We can take care of all of your bonding needs, no matter how big or small. We can also get you any bond that you need in any of the 50 states.
Request Your Maintenance Bond!
Maintenance Bonds VS Performance Bonds
Many people get confused about the difference between maintenance bonds and performance bonds. Whether you are a construction contractor or a motor vehicle dealer a contract bond is often necessary in order to run your business legally and reduce risk with your clients and fellow partners.
- A maintenance bond for a product such as a vehicle is a guarantee to the customer that nothing will be wrong with the product for a specific period of time after purchase. Although often confused with an insurance policy, a maintenance bond, or warranty bond, is not a form of insurance. The maintenance bond ensures that if an issue arises with the product, the customer will not incur any of the costs to repair or replace the damage.
- A maintenance bond for a project, such as a construction project, ensures that any issues that occur after the completion of the job for a set period of time will be fixed at the cost of the project manager and not to the detriment of the project owner.
- A performance bond guarantees the performance of a contractor that meets the guidelines set out in the initial contract. It also protects the project owner in case of bankruptcy by the contractor.
- The performance bond also includes a timeline and job specifications that are required of the contractor and his team, and if not met, a claim can be made against the performance bond.
Both the maintenance and performance bonds are crucial for specific industries and help protect partnering parties from any fraudulent or malpractice issues.
Why Choose The Surety Place For Your Maintenance Bonds
The Surety Place, founded in 2002, began with one goal in mind, to bring innovation and a high level of service the surety bond industry had yet to see. We have been industry leaders from the start; a people first company that you can trust, offering access to agents, specialty programs, and businesses to achieve the right solution at the right time.
A National Surety with a Local Feel
What sets us apart from other sureties is that we establish a relationship with you in order to truly understand your business focus whether large or small, complicated or difficult, so that we truly know how we can be of service to you and minimize some of your pains as a business owner. We are small business owners ourselves, so we know how hard it can be to get started and grow your business which is why we do everything in our power to help every client that comes through our door. We are here to help alleviate some of those stresses by getting you the maintenance bond you need. Your needs as a business owner will be heard, and solutions will be found and implemented in a timely manner. We are one of the few true specialists in the industry and we supply access, partnerships, and specialty programs with numerous “A” rated sureties across the nation. Our industry knowledge and expertise coupled with our ever increasing list of specialty programs, give us the unique ability to write your bonds when no one else can. Put your trust into our team of experts and we promise that you and your business will never be disappointed.
Our Expert-Level Team
We set our standards high, which means we provide our clients with nothing but the best team to help you obtain any bond you may need. Our dedicated account managers are highly trained underwriters who are able to provide our agents and clients with a tailored bonding solution for their individual or corporate needs. Our team is continuously educating themselves on the ever-changing surety bond industry which means we we are able to provide the information you need and answer any questions you may have.
It doesn’t matter how big or small, easy or complicated your bond is, Surety Place is built to find you the right answer. Poor credit, financial hardship, fast growth, or just getting your company off the ground? We have options for you too.