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.