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 Oregon
Oregon's public improvement bond law, ORS 279C.380, requires a performance bond and a payment bond, each equal to the contract price, but no separate maintenance bond. A maintenance or warranty bond is set by the contract or the local agency; for example, Portland City Code 17.24.012 lets the city require a maintenance bond from right-of-way permittees.
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.