What does a maintenance bond guarantee?

A maintenance bond specifically guarantees protection against defective workmanship after a project's completion. This type of bond ensures that if the work performed has any issues or fails to meet specified standards within a set period—often referred to as the warranty period—the contractor is obligated to rectify the problems at no additional cost to the owner. Essentially, it serves as a form of insurance that helps protect the project owner from having to incur extra expenses for repairs that should have been addressed as part of the original workmanship.

In contrast, completion bonds pertain to ensuring that a project is completed on time, while payment bonds focus on guaranteeing that subcontractors and suppliers are paid for their work and materials. Insurance against project delays would involve different types of coverage aimed at financial losses due to scheduling setbacks, rather than addressing quality of work post-completion.