Defect obligations
| bond type | Maintenance bond |
| purpose | To secure post-completion obligations to attend to any defects or remedial works following practical completion. |
| bond facility limit |
$10,000,000 |
| contract value | $45,000,000 |
| bond value | 5% of contract value |
| bond amount | $2,250,000 |
| bond term | 365 days. Calculated as per day. |
Our client had been awarded a contract to maintain a major city transport link which includes electronic tolling and traffic management.
A maintenance bond can be called upon by the principal in the event the contractor does not perform agreed obligations under the contract. The bond secures the contractor’s post-completion obligations to attend to any defects or remedial works following practical completion.
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