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What is a Maintenance Bond?

A maintenance bond is a form of insurance that contractors purchase. It is a type of contract bond that guarantees the construction of the building for a specific time period. Whether the building is newly-built or the project is an addition to an existing building, the bond will reimburse victims of shoddy work or illegal actions.

Before contractors purchase a bond from an agency, they must submit themselves to a credit check, have their application approved, and go through other screening processes.

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