Bond Product
Warranty Bond
Defects liability security covering the warranty period after project completion.
Overview
A warranty bond, sometimes called a guarantee or defects liability bond, answers for structural or workmanship defects discovered during the warranty period following final acceptance.
For public works the warranty period and the acceptable form of security are set by the procuring entity and the contract.
Purpose
- Secures repair or rectification of defects after turnover.
- Supports the release of retention money held by the obligee.
- Provides the obligee recourse without litigation against the contractor's assets.
Who needs this bond
- Contractors completing infrastructure or building works
- Suppliers of equipment with warranty obligations
- Fit-out and specialty trade contractors on turnover
Typical requirements
- Accomplished bond application with obligee and contract details
- SEC or DTI registration, Articles of Incorporation or business permit
- BIR Certificate of Registration and latest tax return
- Audited financial statements for the last two to three years
- Valid government IDs of signatories and board or partnership authority
- Copy of the obligee's bond requirement, invitation to bid, or contract
- Certificate of completion or final acceptance
- Statement of the required warranty period
Final requirements depend on the obligee and the issuing insurance company. See the full requirements guide.
Application process
Step 1
Submit the application
Open an application in your SuretyPH portal and enter the obligee, contract, and bond details.
Step 2
Upload requirements
Follow the guided checklist and upload each document securely to your application file.
Step 3
Pre-assessment
We review the file for completeness and refer it to a participating licensed insurance company.
Step 4
Quotation
The insurer evaluates the submission and issues a quotation covering premium, fees, and any collateral requirement.
Step 5
Payment and issuance
Once the quotation is accepted and the premium settled, the insurer issues the bond for release or delivery.
Frequently asked questions
How long is a warranty bond issued for?
It follows the contractual warranty or defects liability period, commonly one year for buildings and longer for certain structures.
Can it replace retention money?
Only if the obligee accepts a surety bond in lieu of retention. Check the contract terms first.
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SuretyPH is a digital information and lead-generation platform owned and operated by McMatthise Global Group Corporation. It does not independently underwrite, approve, bind, issue, or guarantee any insurance policy or surety bond. Evaluation, underwriting, premiums, approval, and issuance remain the responsibility of the relevant duly licensed insurance company.