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Contract bond

South Dakota Maintenance Bond

South Dakota's public improvement bond law, SDCL 5-21-1, requires surety of at least the contract price for faithful performance and payment of laborers and suppliers, but does not require a separate maintenance or warranty bond. When one is used, the contract or local government sets it.

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Bond at a glance
South Dakota Maintenance BondContract bond
Set by the contract
Public works bond lawSDCL 5-21-1
Bond the law requiresPerformance and payment surety of at least the contract price
Maintenance bondNot in the statute; set by contract
Required byThe project owner or local government
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 South Dakota

South Dakota's public improvement bond law, SDCL 5-21-1, requires surety of at least the contract price for faithful performance and payment of laborers and suppliers, but does not require a separate maintenance or warranty bond. When one is used, the contract or local government 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 South Dakota 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 South Dakota bonds.

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Contract bond

South Dakota Performance & Payment Bond

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

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Development bond

South Dakota 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.

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Contract bond

South Dakota Bid Bond

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

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By state

Maintenance & warranty bonds in other states.

Alabama maintenance bondAlaska maintenance bondArizona maintenance bondArkansas maintenance bondCalifornia maintenance bondColorado maintenance bondConnecticut maintenance bondDelaware maintenance bondDistrict of Columbia maintenance bondFlorida maintenance bondGeorgia maintenance bondHawaii maintenance bondIdaho maintenance bondIllinois maintenance bondIndiana maintenance bondIowa maintenance bondKansas maintenance bondKentucky maintenance bondLouisiana maintenance bondMaine maintenance bondMaryland maintenance bondMassachusetts maintenance bondMichigan maintenance bondMinnesota maintenance bondMississippi maintenance bondMissouri maintenance bondMontana maintenance bondNebraska maintenance bondNevada maintenance bondNew Hampshire maintenance bondNew Jersey maintenance bondNew Mexico maintenance bondNew York maintenance bondNorth Carolina maintenance bondNorth Dakota maintenance bondOhio maintenance bondOklahoma maintenance bondOregon maintenance bondPennsylvania maintenance bondRhode Island maintenance bondSouth Carolina maintenance bondTennessee maintenance bondTexas maintenance bondUtah maintenance bondVermont maintenance bondVirginia maintenance bondWashington maintenance bondWest Virginia maintenance bondWisconsin maintenance bondWyoming maintenance bond

Sources

  1. SDCL 5-21-1, surety bond required on public improvements

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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