Maintenance Bond - Toho Water Authority, FL in Florida

Brief Summary

The maintenance bond is one of the last items a developer posts before Toho Water Authority accepts new water, sewer or reuse lines. Getting it right the first time, on Toho's own template and sized to the certified cost of construction, keeps project closeout from stalling at the finish line.

Toho Water Authority requires a maintenance bond equal to 10% of the total cost of public construction on private development projects that build water, wastewater or reuse improvements Toho will take over. Toho holds the bond for 2 years after it accepts the project, and it must be written on Toho's Maintenance Bond Template naming Tohopekaliga Water Authority as obligee.

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How to Apply for a Maintenance Bond:

• Obtain Toho approval of the Certified Cost of Construction, signed and sealed by the Engineer of Record on Toho's template.
• Calculate the bond at 10% of the total cost of public construction.
• Have the Toho project number, project name and the start and end dates of the 24 month period ready.
• Complete the bond application and review the quoted premium.
• Have the bond executed on the Toho Maintenance Bond Template with notarized signatures for principal and surety.
• Submit the bond with the 3% inspection fees as part of project closeout.

Detailed Information About the Florida Maintenance Bond:

The amount comes from your certified cost, not your contract

Developers often size this bond from the full site contract. Toho bases it on the total cost of public construction only, meaning the water, wastewater and reuse improvements being turned over to the utility. Toho's closeout steps call for a maintenance bond of 10% of that figure. The number comes from the Certified Cost of Construction, signed and sealed by the Engineer of Record on Toho's Cost of Construction Template. The maintenance bond and the inspection fees, which Toho sets at 3% of construction cost, are paid after the Toho Development Project Manager approves that certified cost.

What the bond covers and for how long

Toho's current Maintenance Bond Template runs for 24 months. The principal guarantees repairs and replacements needed because of defective materials or workmanship in the water, wastewater or reuse improvements it built or installed. The maintenance period starts once the Toho Development Project Manager accepts the project.

The 21 month inspection

This is the part that catches developers off guard. Toho runs CCTV inspections of new sanitary sewer lines and manholes about 21 months after completion. Any discrepancies must be addressed within 15 days, or Toho may use the bond for corrections, cleaning or repairs. If nothing needs correcting, the bond is returned after 2 years.

Key terms on the form

Toho must give written notice of a defect within 15 days of discovering it. On streets dedicated to Toho, it may make emergency repairs on 12 hours' notice and charge the cost to the principal and surety. A suit on the bond must be filed within 12 months after the maintenance period ends. Both signatures must be notarized.

Eligibility and Requirements for a Florida Maintenance Bond:

• Tohopekaliga Water Authority, Kissimmee, Florida, named as obligee.
• Bond amount of 10% of the total cost of public construction.
• Term of 24 months beginning when Toho accepts the project.
• Covers defects in materials or workmanship in water, wastewater and reuse improvements.
• Notary acknowledgment for both the principal and the surety.
• Contractor or developer credit and financial review by the surety, which shapes the premium.

Florida Maintenance Bond FAQs:

Official and Additional Resources for the Florida Maintenance Bond: