Maintenance Bond

A maintenance bond ensures that once a construction project is complete that maintenance will be assured on the project for a specified length of time. This length of time is determined before the project is complete, typically a year, and is guaranteed even if the original construction company is no longer available to complete the required maintenance. Should there be issues with the materials, any design flaws or shoddy workmanship; maintenance bonds will cover the repairs similar to, though not exactly like insurance.

Depending on if the project is public or private; a maintenance bond may or may not be required. A federal or government project usually requires a maintenance bond or those used for commercial uses. However those used for private or residential uses have the option not to use maintenance bonds if the project owner so chooses not to. Although it would save money on a project not to use a maintenance bond, the project owner would not be protected if, once the construction is complete, a fault were discovered, such as the building were not up to code, which is just one such issue that a maintenance bond would protect against.

For a new contractor attempting to secure a maintenance bond for a new project, a few things may be requested by the surety company. Those things may include, but not be limited to, business financial statements, personal financial statements for all business owners, a bank reference letter, copies of all insurance papers and a copy of all contractors’ licenses.  However, this does not always ensure that the company will grant a maintenance bond to the contractor.

 


Application for


Current or expiring quote we are looking to beat:


Name of previous surety company writing to the bond:


Section I: Bond Applied for

Type of Bond

Effective Date

Expiration Date


Type of Company

CORP

LLC

DBA

Partnership

Bond Amount


(Obligee)


Obligee Address


Section II: General Information

Applicant's Name

Spouse Name


SS#

Spouse SS#

Home Phone


Residence Address

City

State

Zip


Status of Residency

Own

Rent

At Current Address Since


Date of Birth

Spouse Date of Birth

Business License Number


Business Name


Business Phone

Business Fax

Business Email


Business Address

City

State

Zip


Date Business BEGAN Under Present Individual or Firm Name

Business Tax ID


Has any company refused to issue bonds for any purpose?

Yes

No

Do you have any liens, claims or judgements against you?

Yes

No


Has applicant ever failed in business?

Yes

No

Has applicant filed bankruptcy in the last 10 years?

Yes

No


If yes, Chapter 7?

Yes

No

Chapter 11?

Yes

No

Chapter 13?

Yes

No


Date Filed for Bankruptcy?


Date of Discharge?


If yes to any, please explain:


Section III: Additional Parties

Name

Spouse Name


SS#

Spouse SS#

Home Phone


Home Address

City

State

Zip


Personal Financials

(if more than one owner, each has to fill out this app)

Statement of assets and liabilities as of


Assets Liabilities
Cash in Bank Notes Payable to Banks
Cash on Hand Notes to Others(excl. of equipment)
Stocks and Bonds Accounts Payable
Accounts Receivable Federal and State Income Tax Due
Notes Receivable All Other Taxes
Inventory Accruals, Payrolls, Etc.
Cash Value Life Insurance    
Equipment Due on Equipment
Real Estate Due on Real Estate
Other Assets Other Liabilities
    Surplus and Undivided Profits
    Capital Stock(if a corporation)
       
Total Assets Total Liabilities

Net Worth


Name of Owners

Name and Title of Officers

% of Ownership


Are you an insurance agent?

Yes

No

Agent License #

Agent State

Completion of this form constitutes permission for Cal Society Insurance Services to obtain customer information which will be used to determine bonding eligibility. This information will be held in the strictest confidence.