Subdivision/Site Improvement Bonds
When constructing large offices or multiple properties, site developers have building regulations, bylaws, and rulings that they must follow. These guidelines outline what is to be obeyed during the project. If they are not adhered to, and a bond is not in place, the development is likely to suffer infractions and violations, which can cost both time and money.
A subdivision or site improvement bond is a pledge that is required and must be posted by developers. It is a guarantee to a town, city, or country that the developer, landowner, or primary party in charge of the development, will complete public improvements and provide the funds it requires. These public improvements involve the reconnection of main roads, paving such as sidewalks, and curbs, cross drains, sewage, catch basin, traffic control, and other pertinent necessities of that city or municipality.
What Does This Surety Bond Provide?
The subdivision bond also referred to as performance, completion, and plat bonds, is a contract. It involves three parties, an obligee, principal, and surety. An obligee is the leader of the project and the party that requires the bond. The principal is the company that purchases the bond while the surety is the company that distributes the bond and assures its completion at any cost. In the event that the principal becomes insolvent, the surety pledges to finish the project.
A surety bond offers the parties involved a form of protection. If an issue arises that inhibits the hired contractor from completing the project by the designated time, those affected can file a complaint against the principal. If deemed valid, the surety is responsible for providing the necessary work and bonded funds for completing the task. In the end, the principal, or the party in charge of purchasing the bond, is held accountable for compensating the surety.
Apply For A Subdivision or Site Improvement Bond With Surety Bond Professionals
For those dwelling in Connecticut, New Hampshire, Massachusetts and other areas, Surety Bond Professionals offer licensed services. Bonds are essential as they guarantee the implementation and completion of a development project. Our team can assist you with your developer bond as we provide low rates and fast approvals.
By completing our application form, you can contact our team of experts that specialize in various bonds such as a site improvement bond. As surety bond providers, you can anticipate receiving an immediate quote.
We offer professional and reliable services that can help you with your subdivision bond. Contact us for further information as our professionals look forward to helping you.