Post-completion warranty period protection
Maintenance Bond (Retention Bond)
A Maintenance Bond, or Retention Bond, covers the post-completion warranty period of a project. It ensures the contractor remains responsible for fixing any defects or issues that arise after the project is handed over. If the contractor fails to honor this commitment, the bond compensates the Project Owner, who can then take corrective action. This bond reinforces long-term accountability and protects the owner from future repair costs due to poor workmanship.
Key Benefits
Post-completion defect coverage
Warranty period protection
Long-term accountability
Repair cost protection
Quality assurance
Contractor obligation enforcement
Owner peace of mind
Common Use Cases
- • Building construction
- • Infrastructure projects
- • Mechanical installations
- • Warranty period coverage
How It Works
Step 1: Project Completion
Project handover with maintenance bond in place
Step 2: Warranty Period
Bond covers defects during specified maintenance period
Step 3: Defect Remedy
Contractor fixes issues or owner claims compensation
Target Audience
Project owners, building operators, facility managers