Operations & Maintenance Bond
What is an Operations and Maintenance Bond?
In the case of a Design, Build and Operate Project, a Certificate of Practical Completion marks the point at which the Contractor has completed contractual responsibilities and can release the Works to the client. The Contractor then moves into the Operations phase, depending on the project this could be 1 year, 10 years or longer.
Operation and Maintenance Bonds are a form of Performance Bond following completion of a project. They provide security to the project owner (the Obligee) for the ongoing running of the facility or plant which has been constructed.
Why get an Operations and Maintenance Bond?
- They secure the project owner, the client, against the failure to operate the plant or facility to the standard or output agreed in the operations contract
Who requires an Operations and Maintenance Bond?
- Construction companies
- Engineering companies
- Main Contractors
- Oil Companies
Who is the beneficiary of a Maintenance Bond?
- Irish Water
- National Roads Authority – TII
- Local authorities
- Government bodies
- Commercial companies
Whatever your requirements are as you undertake a new project, be it a Bid Bond, Performance Bond, Retention Bond or in this case an Operations and Maintenance Bond the team at Surety Bonds can facilitate all for you.
We will consider your requirements and best match them with a surety provider to deliver a bond that is bespoke to your terms and deliverables, whilst offering you excellent value. Contact us today to discuss your requirements.
To Get Started:
- Complete the Operational & Maintenance Bond Proposal Form.
- Last two years consolidated audited accounts.
- Up-to-date management accounts.
- Details of banking and borrowing facilities.
[Bank information Form here]
(Client needs to send to their bank for completion.)
- Advise form of contract.
- Copy of bond wording required.