Subdivision, Maintenance and Grading Bonds, otherwise referred to as site improvement, plat, completion, or simply performance bonds, help cover the owner/developer. The key difference between subdivision bonds from regular contract performance bonds is that the owner/developer (the principal) has to pay the cost of building the bonded improvements rather than the public agency (the obligee). While not all sureties write subdivision bonds, for those that do, the underwriter will require information such as the scope of the improvements, a cost estimate, and where the money is coming from.
Application: Call underwriter for appropriate application at 1-818-715-7133
FAQs About Subdivision, Grading & Maintenance Bonds
We want you to feel comfortable working with our surety bond company and realize you may still have questions. Our FAQ section below will help you understand more about our business and what we do. Let’s learn more!
How Do Subdivision Bonds Work?
What Is a Grading Bond?
If the bond is to be canceled, then a release must be tendered by the municipality. Qualification will require that the owner has the funds required for the grading work to commence. Apart from that, we’ll also want to make sure that a licensed and reputable contractor is being used for the job.
How Much Does a Maintenance Bond Cost?
Maintenance bonds, site improvement bonds, a construction bond, or any kind of completion bond will all have the same pricing story as far as we are concerned. Bear in mind that we must tailor these agreements to the needs of our customers.
It stands to reason, therefore, that there isn’t a bond premium figure set in stone. Be that as it may, we make it incredibly easy to get a quote so you’ll know what to expect.
Simply use our quick quote function, which requires a couple of simple details, and we’ll assist you!
How Does a Warranty Bond Differ from a Maintenance Bond?
What's the Main Difference Between a Subdivision Bond and a Site Improvement Bond?
It may sound like a subdivision bond, but the key difference is where the focus is. Subdivision bonds focus on new buildings while site improvement bonds tend to be concerned with upgrades to existing or public properties.
What Are Some of the Informational Requirements to Write a Subdivision Bond?
You need only speak to us and we can provide you with the guidance you need to ensure that all the requirements are met.
How Does a Maintenance Bond Differ from a Performance Bond?
The difference between the two lies in where the said protection applies. In the case of a performance bond, the coverage applies to the work that is performed during the project. On the other hand, the maintenance bond is meant to provide coverage for the period following the job completion and acceptance.
Some contractors will opt to simultaneously obtain both kinds of bonds since doing so would offer a greater measure of protection.
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