Subdivision bonds cover all aspects of subdivision construction and are specifically intended to protect public property in these kinds of building projects. This type of surety is provided to a public agency in order to assure the completion of certain improvements to public property that are meant to provide value to the general public. These improvements can include landscaping, storm drains, utility lines, sidewalks, gutters, drainage ditches, and streets. This contractor surety bond ensures that all of these elements are completed according to the plans submitted. Though these improvements are paid for by the owner or developer, once completed, they become public property.
In most cases, public improvements are imposed as a condition for a subdivision project to proceed, but in some cases the developer may be able to instead guarantee the work through other means, such as by posting a letter of credit, certificate of deposit, a certified check, or money order to be held against the work. Should a contractor agree to post a subdivision bond to the public agency, they are then responsible for completing and paying for such improvements, whether or not the developer has paid them.
Apply For a Subdivision Bond Today
If you have any questions, call Contractor Surety today. We are the trusted authority for construction bonds and sureties of all kinds, leveraging decades of experience across all segments of the construction industry.
If you know the scope of your project and are ready to start the process, simply fill out an application.