The power of warranty and maintenance bonds goes far beyond the construction process: they ensure that the job is built to last. As we discussed in our blog, How Maintenance Bonds Ensure Your Contractor Gets the Job Done Right, these bonds are critical to the trust and credibility shared between contractors, owners, and project managers. In this post, we’ll look at some of the ways that warranty and maintenance bonds continue to serve a purpose long after the end of a construction project.
How Long does a Maintenance Bond Last?
The project owner sets a period required for the maintenance bond to last. These are commonly set in terms of 12, 18, or 24 months. The bond covers defects in craftsmanship and materials for the specified amount of time. Projects are long-term investments for owners and contractors alike, which makes the peace-of-mind that a maintenance bond provides an important part of the construction process. It’s also essential to work with a surety provider who is capable of working on long-term agreements and resolving disputes.
Why Are Maintenance Bonds Important?
Maintenance bonds, which are also called warranty bonds, are an important part of the trust shared between contractors and owners. They are showing faith in each other as quality businessmen and women and are showing that they are willing to back up their expertise with the security of a warranty bond. Confidence in one’s craft is the key to being competent and creating long-lasting, quality construction projects.
What is Protected in a Warranty Bond?
If clients find defects in craftsmanship within the specified time frame, they can submit the findings to the surety company, who can then determine if it is valid. If the claim is deemed to be valid, the surety company can compensate the obligee for losses and damages, and then collect from the contractor.
Warranty and maintenance bonds are often required on state and federal construction projects because they help to ensure the quality of the taxpayer’s investment. These projects may have longer maintenance bond terms than private projects. Though warranty bonds are less popular with private project owners than with federal projects, an increasing amount of project owners and managers are requiring maintenance bonds for contractors to submit bids.
Viking Bond Service, Inc. has the experience to serve as a surety for your long-term warranty and maintenance bonds. To find out more about maintenance or warranty bonds, give us a call at 1-888-278-7389 or start an online application. We’re happy to help you with all of your surety bond needs.