What does a maintenance bond guarantee?

A maintenance bond guarantees that the contractor will maintain the project after its completion. This type of bond serves as a protection for the project owner by ensuring that if any defects or issues arise within a specified period after the project is finished, the contractor is obligated to address these problems at no additional cost. This typically covers aspects such as repairs or corrections to any issues caused by faulty workmanship or materials that were inadequate.

The purpose of a maintenance bond is to provide stakeholders confidence that the work performed will remain in good condition for a certain time frame, ensuring that the investment made into the project is safeguarded against potential failures or necessary repairs shortly after completion. It is distinct from guarantees related to project timeliness, material quality, or overall budget management.