What a maintenance bond is
A maintenance bond, also called a warranty bond, guarantees your finished work is free of defects in materials and workmanship for a set period, often one or two years. Sometimes it's built into the performance bond; sometimes the owner wants it separately.
In Delaware
Delaware's public works law, 29 Del. C. § 6962, requires a bid bond of at least 10% of the bid and a performance bond of 100% of the contract price on large public works contracts, but does not require a separate maintenance or warranty bond. When one is used, the contract or local agency sets it.
- The § 6962 performance bond also covers payment to everyone furnishing material or labor on the contract.
You need this bond if you're
- A contractor finishing public works with a warranty period
- A site contractor handing improvements over to a city or county
- Paving, concrete, roofing and landscaping contractors
- A developer whose subdivision bond is being released
What the surety looks at
Your business, credit and the finished project. Often handled together with the performance bond.