What is a Maintenance Bond?
A type of surety bond purchased by a contractor that protects the owner of a completed construction project for a specified time period against defects and faults in materials and workmanship that could arise later if the project was done incorrectly. A maintenance bond is not technically insurance, but basically functions as an insurance policy on a construction project to make sure a contractor will either correct any defects that arise or that the owner is compensated for those defects. Pricing a maintenance bond is very different from pricing of Performance Bond and typically less.
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