Sub-Division & Site-Improvement Bond
Subdivision bonds also known as site improvement bonds, are required by developers or home builders for a local municipality or county at the time he or she wants to file a lot map or obtain a building permit. The bond is a guarantee to a city, county, or state that a principal involved in the construction of a subdivision will finance and complete mandatory public improvements at no expense to the municipality. The major difference between subdivision bonds and site improvement bonds is that site improvement bonds pertain to upgrades on pre-existing buildings or public property, whereas subdivision bonds concern new buildings. These improvements typically include streets, sidewalks, curbs, gutters, sewers, water mains, monuments and landscaping.
Subdivision bonds work like all other surety bonds as agreements made between three parties. The obligee is the party requesting the bond (the project owner or the state), the principal is the party obtaining the bond (the contractor participating in the bid) and the surety bond company is the party issuing the bond, which is also responsible for its financial backing. Allstar Surety can help your contractors obtain a subdivision bond that guarantees to the obligee and principal that required improvements as well as payment of all material suppliers, subcontractors and laborers who work on the project will be completed.
Allstar Surety provides subdivision bonds to contractors of all credit types. Contact a Surety expert today to learn more.