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Contract bond

Indiana Maintenance Bond

Indiana cities, towns and counties may require a maintenance bond for subdivision improvements, but state law (IC 36-7-4-709(f)(2)) bars them from requiring a maintenance bond lasting more than three years from a developer of Class 1 or Class 2 structures. On other projects the contract sets it.

Bond at a glance
Indiana Maintenance BondContract bond
Set by cities and counties
LawIC 36-7-4-709(f)(2)
Maximum termThree years (local requirement for Class 1 or Class 2 developers)
AmountSet by the local unit; Indianapolis requires at least 20% of the performance bond
ObligeeThe city, town or county accepting the improvements
Required byThe local unit approving the subdivision, or the project owner under the contract
How it works

Three steps to your bond.

  1. 01Apply onceTell us about your business and what the bond is for. One application covers most contractor bonds.
  2. 02The surety reviews itPropeller Bonds, our surety partner, reviews your application and sets the terms. We show you the terms before you commit.
  3. 03Sign and fileSign the bond and file it with whoever requires it: the project owner, agency or court. We help with the filing.
About this bond

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 Indiana

Indiana cities, towns and counties may require a maintenance bond for subdivision improvements, but state law (IC 36-7-4-709(f)(2)) bars them from requiring a maintenance bond lasting more than three years from a developer of Class 1 or Class 2 structures. On other projects the contract sets it.

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.

FAQs

Common questions.

Does Indiana law require maintenance bonds?

Usually the contract or the local agency sets it, not a statewide law. The contract states the amount and how long it lasts.

How long does a maintenance bond last?

As long as the warranty period in the contract, commonly one or two years after the owner accepts the work.

What does it cost?

You pay a premium, not the bond amount. The surety sets the premium after it reviews your application, usually as a percentage of the bond amount. We show you the terms before you commit.

How do I get one through BLDAssure?

Apply once with us. We collect the details the surety needs, Propeller Bonds (our surety partner) reviews the application and issues the bond, and we help you file it with whoever requires it.

Related bonds

Other Indiana bonds.

See all 139 Indiana bonds with prices →

Contract bond

Indiana Performance & Payment Bond

Performance and payment bonds usually come as a pair once you win a job.

Development bond

Indiana Subdivision Bond

Cities and counties often require a developer to bond the public improvements in a new subdivision or site plan, like streets, sidewalks, storm drains, sewer and water lines, before they approve the final map or permits.

Contract bond

Indiana Bid Bond

A bid bond is a guarantee you submit with your bid.

Sources

  1. IC 36-7-4-709 (FindLaw)
  2. IC 36-7-4-709 (Justia, 2024)
  3. Indianapolis bond acceptance process

General information, not legal advice. Rules change; confirm the current requirement with the agency or owner that asks for the bond. Facts checked Oct 23, 2026.

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