Subdivision Contract Bond

A subdivision contract bond is a surety bond that landowners, developers or builders must purchase when upgrades or changes are required from the local government agency. The subdivision bond guarantees that workers perform their responsibilities according to the terms mentioned in the bond.

The bond is mostly required by township or municipalities. The subdivision bond guarantees that a developer will put in agreed-upon improvements like water or sewer lines, street lights, and sidewalks. If a developer files for bankruptcy, the surety will fulfill the obligation by either reimbursing the township or municipality or by hiring another business to finish the job satisfactorily.

Subdivision bonds are also known as the following:

  • Subdivision bonds
  • Performance bonds
  • Completion bonds
  • Plat bonds

Quick & Easy Bond Quotes

Choose Your Bond
Bond Amount
First Name
Last Name
Company Name
Phone Number
Email To Send Your Quote

In order to address the general public demand, a subdivision bond acts as a written assurance. It makes sure that a principal involved in the construction of a subdivision will finance and complete the mandatory public improvements.

Like a surety bond, a subdivision bond also has three parties:

The obligee: The obligee is the owner of the project who requires a subdivision bond to make sure that the project is completed according to the contract.

The principal: Is the company which purchases the bond as a written assurance that the project will get completed on time.

The surety: Is a company that issues bonds between the obligee and principal and guarantees that the subdivision project will be completed.

Bonds are necessary for the completion of many projects. If, by any chance, the contractor fails to perform a task on the given date or in any way breaks the terms and conditions of the subdivision bond, those who are harmed can make a claim against the bond purchaser. If the claim is found to be authentic, the surety will provide the injured party with reparations up to the bonded amount and look for reimbursement from the principal.

Surety Bond Professionals offers subdivision bonds in Connecticut, New Hampshire, Massachusetts and other major parts in the US. Get your free quote today by using our bond application form. Contact Surety Bond Professionals, a subdivision bond service provider, to get an instant subdivision bond quote now.

If you have any questions, please contact us for help.