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Other Names: Warranty Bond
Maintenance Bond document preview

What is a Maintenance Bond?

You found the right contractor to install the plumbing, electrical wiring or HVACs for your improvement project. Or maybe you're having your house remodeled. Creating a Maintenance Bond protects your investment in your house, business or side project by guaranteeing the work the contractor performs. 
Repairs and remodels can be stressful, so you'll want to know that they're done right. As an owner, a Maintenance Bond helps you cut the risk of defective construction by insuring the work performed. You can also benefit from a Maintenance Bond since your money will be reimbursed if your contractor goes out of business or can't repair the construction work. A Maintenance Bond is a contract between an owner, a contractor, and a surety company. Maintenance bonds guarantee that any work defects found in the original construction will be repaired during the warranty period. If the contractor can't fix the defects, the owner will be repaid. Your state or a surety company usually issues Maintenance Bonds.

When to use a Maintenance Bond:

  • You are a contractor and the project documents or owner requires that you provide a guarantee regarding the repair of any defects in your work.
  • You are a project Owner who would like a guarantee in the event the Contractor fails to repair any defects in the project.

Sample Maintenance Bond

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Warranty Bond


The Owner, , (the Owner) and the Contractor, , (the Contractor) have entered into a Contract (the Contract) dated for (the Project). The Contract is incorporated by reference into this Warranty Bond (the Bond).


By virtue of this Bond, the Contractor as Principal and as Surety (the Surety) are bound to the Owner as Obligee in the maximum amount of (the Bond Sum). The Contractor and Surety hereby bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally, as provided herein.


1. GENERAL CONDITIONS: It is the condition of this Bond that if the Contractor, upon receipt of written notice in accordance with the Contract of a defect in the Work, promptly performs its obligations under the Correction of Work provisions of the Contract, which said defect may be discovered during the one-year Correction of Work period commencing on the Date of Substantial Completion, or on Date of Final Completion as mutually agreed by the Owner and Contractor, the Suretys obligations shall remain in full force and effect.


2. SURETY OBLIGATION: If the Contractor fails to fulfill its obligation as set forth above, the Surety shall pay out, reimburse, and make good to the Owner the cost to correct such defect. In no event shall this obligation exceed the Bond Sum stated above.


3. The Surety shall not be required to remedy any defect in the Work arising from unsuitable or inadequate design.


IN WITNESS WHEREOF, we have hereunto set our hands this with the intent to be legally bound.



4. SIGNATURES: This Bond shall be signed by on behalf of and by on behalf of .




By: Date:

, its






By: Date:

, its


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