Which type of bond protects the owner from faulty workmanship after project completion?

The appropriate type of bond that protects the owner from faulty workmanship after project completion is a maintenance bond. A maintenance bond assures the project owner that the contractor will fix any defects or issues that arise during a specified period following the completion of the project. This type of bond provides peace of mind, ensuring that the contractor is responsible for correcting any problems due to poor workmanship, thereby safeguarding the owner's investment in the project.

Maintenance bonds typically have a duration that allows for adequate coverage for post-completion issues, which is crucial for maintaining the integrity and value of the completed work. This bond demonstrates the contractor's commitment to quality work and accountability even after they have finished the project.

In contrast, a bid bond secures that a contractor will enter into a contract at the bid price if selected, while a performance bond ensures that the contractor will fulfill their contractual obligations during the project's execution. An insurance bond, while providing coverage for various liabilities, does not specifically address the issue of correcting faulty workmanship after a project is completed.