CG Bonds Surety - Defects Liability Bonds


A defect liability bond is very similar to a performance bond; however, the defect liability bond addresses the post-construction phase. It provides coverage for potential defects and issues that may emerge after the project’s completion.

CG Bonds Surety has a deep-rooted understanding of all the unique intricacies of surety bonds. For more information as to how CG Bonds Surety has expertise dealing with surety bonds, please have a look at our About Us page.

What are Defect Liability Bonds?


A Defects Liability Bond begins when the contractor has completed the works to a satisfactory standard. This period typically lasts between 6–12 months, and the principle must remedy any faults that may arise in their work. Failing to do so will require the beneficiary to call upon the bond money to remedy any faults.

How do Defect Liability Bonds Work?


A defect liability bond works as a financial instrument that assures a project owner or client that the contractor will rectify any defects or issues that arise in the construction of a project during a specified period after its completion. Ultimately, this bond serves as a guarantee that the contractor will fulfil its obligations specified in the contract. They work in a very similar way to performance bonds.


During contract negotiations, a project owner stipulates that the contractor must secure a defect liability bond. The contractor then engages with a surety company that has to complete the application process including the project details, financial information, and the contractor’s experience. 


The surety company conducts thorough underwriting, assessing the contractor’s creditworthiness and past performance. If approved, the surety company issues the defect liability bond, which serves as a guarantee of the contractor’s commitment to rectify any defects. This bond is subsequently provided to the project owner, ensuring financial protection and project quality assurance.

Who Qualifies For a Defect Liability Bond?


In essence, a defect liability bond is applicable in situations where there is a need to ensure the quality, performance, and durability of completed construction projects. It serves as a financial safeguard for both project owners and contractors, assuring that any defects will be promptly addressed during the specified warranty period.

How Long Does a Defect Liability Bond Last?


The defect liability period, governed by a defect liability bond, varies based on contractual agreements in construction projects. Typically lasting from six months to two years, with one year being common, this period obligates the contractor to rectify any defects at their expense. 


The specific duration is negotiated between the project owner and the contractor and aims to ensure the completed project meets quality standards. During this timeframe, identified issues trigger the contractor’s responsibility for prompt resolution, providing a safeguard for the project owner and maintaining construction quality. A clear contractual definition of the defect liability period is crucial to avoid misunderstandings between the parties involved.

Defect Liability Bond Costs


The expenses associated with defect liability bonds can vary considerably, influenced by multiple factors. These include:


  • The financial stability of the applicant.
  • The provision of additional security.
  • The duration and specific terms of the bond.
  • The distinctive features of the project. 


CG Bonds Surety excels in providing specialised expertise in the realm of surety bonds, enabling us to offer the most competitive terms in the market. Our pride lies in our unique background deeply rooted in the technical and construction sectors, distinguishing us from traditional surety and insurance entities. Leveraging this distinctive foundation, we implement a Best Price Guarantee policy on all construction bonds, ensuring our clients receive the most favourable terms available.

How CG Bonds Surety Can Help You With Defect Liability Bonds.


CG Bonds sets itself apart with an in-house team of experts, including technical and legal professionals, readily available to offer clear guidance throughout the bond process. Dedicated client relationship managers provide valuable assistance throughout the entire application process, ensuring a stress-free experience. Our goal is to deliver the best possible service by providing specialised expertise tailored to each client’s unique bond requirements.


What further distinguishes CG Bonds is our exceptional 100% track record in securing defect liability bonds. This positions us uniquely in the market, allowing us to assist contractors of all financial standings in obtaining defect liability bonds.


Additionally, we prioritise your needs by providing accurate price estimations, enabling swift submissions during the tendering phase. We also offer a Best Price Guarantee on all surety bonds.


  • Contractor Loyalty Rebate Rewards.
  • 100% Track Record in Fulfilling Bond Requirements.
  • Exclusive Underwriting Partnerships.
  • Bond Finance Options.
  • Best Price Guarantee.

Benefits Of Getting A Defect Liability Bond From CG Bonds Surety


  • Contractor Loyalty Rebate Rewards – Our client reward program is tailored for those who consistently opt for CG Bonds across multiple bond executions.
  • 100% Track Record in Fulfilling Bond Requirements – We take pride in guaranteeing favourable terms on all bond applications with CG Bonds.
  • Exclusive Underwriting Partnerships – At CG Bonds, our distinctiveness is underscored by the development of an expansive and exclusive network of underwriters.
  • Bond Finance Options – To ease the initial strain on project capital, CG Bonds provides deferred payment options for bond applications.
  • Best Price Guarantee – Rely on CG Bonds to not just meet, but surpass any formal quote you present to us.

Contact Us For Defect Liability Bonds

If you require further information regarding the procurement of a defect liability bond, please feel free to get in touch with our dedicated client relationship team today. They will provide you with a clear overview of the requirements, simplifying the process of obtaining a bond.

Get A Quote For A Defect Liability Bond Today!

Optimise your application process with our convenient over-the-phone Application Completion Assistance service.

For an immediate indication, don’t hesitate to contact a member of our team today for prompt assistance.


Find More Of Our Surety Bond Services

As leading experts in the UK for acquiring and advising on defect liability bonds, our expertise extends to a diverse range of other contract guarantee bonds. Explore more of our surety bond services below: