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Warranty Bond basics

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 Warranty Bond protects your investment in your house, business or side project by guaranteeing the work the contractor performs.

Use the Warranty Bond document if:

  • 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.

Repairs and remodels can be stressful, so you'll want to know that they're done right. As an owner, a Warranty Bond helps you cut the risk of defective construction by insuring the work performed. You can also benefit from a Warranty Bond since your money will be reimbursed if your contractor goes out of business or can't repair the construction work. A Warranty Bond is a contract between an owner, a contractor, and a surety company. Warranty 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 Warranty Bonds.

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Sample Warranty Bond

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