Maintenance Bonds, also known as Warranty Bonds, are a type of surety bond accessible to Michigan contractor that protects completed construction project for a specified time period against complications that could arise later if the project was done incorrectly. These bonds guarantee that the contractor will solve all maintenance issues during a specified amount of time after completion of a project. Traditionally this length of time is roughly a year after, however can widely vary based on specific contract stipulations. In the event that the contractor is unable to provide a solution or that the contractor has gone out of business, a Maintenance Bond will help ensure the project owner is compensated for any faults in materials, workmanship and design or other defects.
When requesting a Michigan Maintenance Bond, there are a few essential pieces of information needed by the surety provider. Bonders will typically request:
- A Bond Request form which is designed to provide the bonding company with a basic overview of the current bond being requested. You will also need to provide a history of previous bond information for the project if you are switching bonding companies, or working with a new surety service.
- A copy of the complete contract. The contract will help the bonding company verify that a Michigan Maintenance Bond is actually required for the project. The sum of the maintenance bond along with the duration of the maintenance period and scope of works covered will also be established within the contract and are essential information for the surety company.
- You may also be asked to provide information regarding how the contract was awarded. If the contract was received as part of a bid process, the surety provider will inquire as to what security was used to bid the project as well as what the bid results for the project originally were.
- That you provide a list of alternate companies that can provide the same or comparable services as assurance the bonder that another entity to cover the maintenance can be found should you default or be unable to complete the required maintenance.
At Capital Insurance we specialize in Michigan Surety Bond services. Our extensive experience and relationships with large, well respected bonding companies we are able to provide Michigan contractors the best surety bonds at highly competitive rates. Whether you are a small independent contractor or a large construction operation we can help you with all of your Michigan Surety Bond needs. Give us a call today at 888 296 0418 for more information.