ConstructionBond offers many different types of bonds, which are specifically designed to be able to help contractors and property developers. Some of these bonds, including performance bonds, are well known and utilized frequently. We also offer maintenance bonds, which are less frequently utilized and lesser known. Of course, they can still be beneficial for both sides of the agreement. Below, you’ll learn about our maintenance bonds and why you should consider filing one.
An Overview Of Maintenance Bonds
The majority of contractors and property developers may not be familiar with maintenance bonds. What are they exactly? Well, these bonds aren’t always required by law, which makes them less common. Still, they’re capable of protecting the project owner for a lengthier period of time than performance bonds. The project owner may or may not decide to file this type of bonding for contractors, but it can be helpful for better protecting their investment for a specific duration, after the project has been completed.
What You Will Need
In order to file a maintenance bond, you’ll need to collect a little bit of information about your upcoming project. The information provided will help to determine the exact cost of the bond. Below, you will find the information that is needed.
- The specific size and scope of the job
- The job’s contractual terms
- Your desired bonding coverage
- The contractor’s business history and record
- The principal’s credit score
- Other financial credentials from the principal contractor
If you have an impressive credit score and better financial credentials, you will be praised with a much more friendly rate.
What Is Protected
By filing a maintenance bond, you will be able to protect your investment even further. This bond protects a few specific aspects of the completed project. These will be listed below for your consideration.
- Defects in the project’s design
- Failures in the workmanship
- Problems encountered after the project is concluded
These bonds will only protect you from these problems for a specific period of time, which will be mentioned within the bond. If you find any of these problems, before this time period has passed, you can file a claim and have the problem rectified or be paid compensation up to the specified bond amount.
Extra Protection for Project Owner
A maintenance bond is most often bought in conjunction with a type of performance bond. The main purpose of this is because the maintenance bond only covers a specified amount of time. While this type of surety contractor bond is not as popular as other bonds, it can provide an extra assurance and protection from financial loss after the project has been fully completed.
File Your Bond Now!
There are many construction developers that would like to protect their projects and investments even further. Although performance bonds are great, they do not protect you, after the project’s completion. If you want more insurance and increased peace of mind, you will definitely want to explore our maintenance bond options with a licensed Canadian construction bonding company. They’ll protect your from malfunctions, failures and complications for a designated period of time, after the project has been completed. Be sure to check out our bonds today!
Other Types of Construction/Contract Bonds we provide:
- Construction Bid Bonds – Financial Security for Contract Bidding.
- Performance Bonds – Guarantee of work being completed.
- Payment Bonds – Provides protection for payment workers.
- Subdivision Bonds – A bond used for subdivison development.
- Site Improvement Bonds – Making improvements to an existing project.
- Labour And Material Bonds – Helps cover Labour and Materials Cost.
- Surety’s Consent or Agreement to Bond – Agreement with the Bond Issuer.
- Bad Credit – Bonding for Businesses with poor credit.
- Fiduciary Bonds – Similar to Insurance (Protects your business)