What is a Maintenance Bond?
A Maintenance Bond is typically referred to as a Warranty Bond within the construction industry. These bonds typically guarantee the quality of a contractor’s workmanship. A Maintenance Bond is usually for a specified period of time.
How does a Maintenance Bond Work?
A Maintenance Bond may be required when a craftsman takes on a specific job. These jobs can be public or private. These bonds basically guarantee that work completed will be free of defects for a defined period of time. Should a defect be found in the work, the surety carrier will be notified. The craftsman that did the work will be required to repair the defects or the surety carrier will find a suitable replacement to correct the work. If the surety has to find another craftsman to complete the project, the original craftsman will have to repay the surety for the cost of correction.
How much does a Maintenance Bond Cost?
The cost of this type of bond is based on the bond amount required by the project owner from whom the bond is required. The amount of the bond is determined typically through a bidding process. A big factor in pricing is determined by the maintenance period and specifications, corporate financials, and the personal credit report of all owners and spouses. Someone with good credit may pay a lesser premium than a person with poor credit. However, just because someone has poor credit does not mean we cannot help you. At Universal Service Agency, we strive to find our clients the best rates with the strongest rated carriers to insure you are getting the best bond coverage available.
How do I get a Maintenance Bond?
You can get Payment Bonds by contacting surety bond agents/brokers. Since you’re already here, you can give us a call at 215-646-2400 or Apply Now here.
How to Choose a Bonding Company?
Universal Service Agency offers Surety Service Made Simple. We are the fastest surety only agency in the country, with over 100 years of combined surety experience servicing all 50 states. We exhaust all of our resources to get you the fastest turnaround times and lowest rates. We can help anyone, even clients that may not fit into the standard market. You can get a free quote here or call our bond experts at 215-646-2400.
How long does it take to get a Maintenance Bond?
Universal can issue bonds the same day an application is received. The amount of time between application and issuance is affected by a number of factors though, including but not limited to, the size of the obligation, the type of bond, and promptness of the premium payment.
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Universal Service Agency is the fastest “surety only” agency in the country, with over 100 years of combined surety experience servicing all 50 states.