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 Utah
UDOT requires a Performance and Warranty Bond for encroachment permits in state highway right of way, and the bond must stay in effect for 3 years after the work is completed. For subdivision improvements, Utah Code § 10-9a-604.5 lets a city require an improvement warranty before accepting the improvements, with security capped at 10% of the improvement cost. On other jobs, the contract sets any maintenance bond.
- UDOT may require a bond amount above the minimum based on the risk of the work.
- Salt Lake City's right-of-way bond also covers a 3-year warranty period from the City's acceptance of the work.
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.