Which bond protects the owner (buyer) from faulty workmanship after completion?

The maintenance bond is designed to protect the owner or buyer from issues that may arise due to faulty workmanship after a project has been completed. This type of bond ensures that the contractor will address any defects in the work for a specified period after the completion of the project. If problems are found during this maintenance period, the contractor is obligated to repair defects at no additional cost to the owner.

This bond acts as a safeguard for the owner, providing peace of mind that the contractor will stand behind their work and rectify any deficiencies that emerge after the project has been finalized. It confirms that the contractor is financially responsible for the maintenance and quality of the work, thus supporting the long-term investment made by the owner.

In contrast, the performance bond guarantees that the contractor will complete the project according to the contract terms but does not cover issues that arise after project completion. The bid bond is primarily for securing a contractor’s bid and ensures that the contractor will accept the job if awarded. An insurance bond generally covers risks related to damage or liability but does not specifically address the issue of faulty workmanship after project completion.