Maintenance Bond

Maintenance bonds (or warranty bonds) are needed by contractors who have performed work on a certain construction project.

They are almost always required on public construction projects, while on private projects they may sometimes be required at the discretion of the project owner.

There are no different types of maintenance bonds.

There are differences between all such bonds, however, since every bond concerns a particular construction project, and the bond’s conditions, bonding amount and maintenance term are in conformity with the specifics of that particular project. Maintenance terms are typically set for a period of 12, 18 or 24 months.

Maintenance bond cost is a percentage of the total amount of the bond. When considering what percentage, or premium, to offer to the principal, sureties consider a variety of financial and non-financial factors. The most important among these factors is personal credit score. The higher an applicant’s score, the lower their rate usually is.

In the case of maintenance bonds in particular, sureties will also want to know the amount of the initial contract for the construction project. They may also want to see a principal’s financial statements, and receive more information about their experience and their work records.

Typically, if an applicant has a high credit score, they can expect their bond to cost between 1%-4% of the total bond amount. For a $30,000 maintenance bond, for example, principals can expect a premium between $300 and $1,200.

The surety which issues the bond is also an important determining factor of the cost of your bond. Lance Surety Bonds works with a number of acclaimed and highly professional sureties. All of them are A-rated and T-listed, which means that any bond issued by them is among the best bonds available in the country.

Furthermore, some applicants may be able to reduce costs by obtaining their maintenance bond and performance bond together, due to any performance-related risks being spread more evenly between these bonds.

To get your bond, apply online through our easy-to-use application tool, and submit your form. Approvals for maintenance bonds are fairly fast so you can expect to hear from us soon. Once we have processed your application, we will provide you with your free bond quote.
If you need any help or guidance, or have any questions, do not hesitate to call us at (877)-514-5146. We are here to provide you with assistance and additional information.