MAINTENANCE BONDS

MAINTENANCE BOND

American Surety Bonds Agency helps contractors secure maintenance bonds for construction contracts nationwide. Because requirements vary by obligee, project, and contract specifications, our underwriting team reviews your contract documents and financial profile before determining your bond amount and next steps.

A Maintenance Bond is a type of contract bond that guarantees the contractor will maintain the project and correct any defective workmanship or materials discovered during a set maintenance period after the project is complete.

This bond does not guarantee the underlying quality of materials, and it does not cover normal wear and tear. Coverage also ends once the maintenance period in your contract or bid specifications ends. That period typically runs one to two years after the project’s acceptance, though public contracts sometimes require longer terms.

For a standard one- to two-year maintenance period, this obligation is often already covered within the scope of your Performance Bond; a separate Maintenance Bond becomes necessary mainly when the contract calls for an extended maintenance period or the obligee specifically requires a standalone bond.

This bond goes by several names depending on the obligee or the governing contract form. You may also see it called:

• Warranty Bond
• Construction Warranty Bond

These all refer to the same bond described on this page — the terminology differs by obligee and contract type, not by bond function.

Your project owner, contract, or bid specifications typically set maintenance bond requirements. On public contracts, state and local procurement rules may also apply.

This bond may serve several purposes, including:

• Guaranteeing that the contractor will correct defective workmanship or materials discovered during the maintenance period after project completion — commonly one to two years
• Meeting a bonding requirement stated in the contract or bid specifications, particularly on public works projects
• Reflecting the same kind of warranty obligation required on federal fixed-price construction contracts under FAR 52.246-21, which requires contractors to remedy defective work for one year after final acceptance — though maintenance bonds themselves are typically required by the contract or by state and local public-works requirements, not by one uniform federal bonding statute
• Reassuring the obligee that a contractor stands behind the durability of its completed work after the project is accepted

For a standard maintenance period of one to two years, this coverage is often already included in the scope of your Performance Bond. A separate Maintenance Bond typically becomes necessary when the contract calls for an extended maintenance period or the obligee specifically requires a standalone bond — in that case, it’s usually issued by the same surety that wrote your Performance Bond, rather than requiring an entirely new bonding relationship.

Your bid specifications, contract, or project owner will state whether a maintenance bond is required and for how long. American Surety Bonds Agency assists with the bond application and underwriting process.

Already have a Performance & Payment Bond with American Surety Bonds Agency? We can typically add your Maintenance Bond to that existing file. Otherwise, our underwriting team reviews your financial profile and the completed project’s scope individually. To apply, you’ll typically need:

• A copy of the contract or bid specifications
• A job cost breakdown
• Personal and business financial statements, if requested — these are typically collected as part of completing the Fast Track application or Bond Kit itself, not a separate document to gather beforehand

Along with these documents, underwriters weigh your bid amount, personal and corporate credit history, net worth, and assets; your total work on hand; your previous experience; and the project’s scope of work.

You can apply either way: the Fast Track application for an awarded contract amount under $250,000, or the Bond Kit for contracts of any size or scope. After reviewing your application, the underwriter may request additional supporting financial or project documents, and will advise if any further underwriting requirements apply.

Maintenance bond premiums are individually underwritten, with rates typically starting at less than 1% of the contract amount and ranging upward depending on the bond amount, project scope, and the applicant’s financial profile. At American Surety Bonds Agency, we work with a wide array of markets — from preferred clients to non-traditional clients and everyone in between — to help find the right rate for your bond.

Obtaining your bond through American Surety Bonds Agency is simple:

1. Complete the online application — our Fast Track application for an awarded contract amount under $250,000, or the Bond Kit for contracts of any size or scope.
2. Our underwriting team reviews your contract documents, financial information, and project history.
3. Once approved, review your rate and finalize your bond.
4. Receive your completed bond to submit with your contract.

American Surety Bonds Agency has been helping contractors meet their bonding requirements for decades. Whether you’re wrapping up your first public works contract or managing maintenance obligations across several active projects, our experienced team is here to make the process simple and efficient.

When you choose American Surety Bonds Agency, you’ll receive:

• Experienced surety bond professionals
• Competitive rates from leading surety companies
• Fast underwriting and responsive customer service
• A secure online application process
• Assistance throughout the bonding process

Above all, we’re committed to helping you meet your bonding requirement quickly and correctly, with experienced guidance every step of the way.

Contact American Surety Bonds Agency toll-free at (877) 201-8976 or our Atlanta office at (404) 486-2355. Our team can answer questions about your specific maintenance bond and project details and walk you through the application process.