Subdivision Bond

A subdivision 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. These public improvements are for the greater good of the local community and typically pertain to streets, sidewalks, curbs, gutters, sewers, and drainage systems. Subdivision bonds can be required of any developer, builder or even a landowner, in order to ensure they meet the requirements of the local authority.

When are Subdivision Bonds required?

These bonds must be posted by a developer or home builder for a local municipality or county at the time he or she wants to file a lot map or obtain a building permit.

How do they differ from “Site Improvement Bonds”?

The primary difference between subdivision bonds and site improvement bonds is that subdivision bonds are required for construction of new buildings, whereas site improvement bonds are needed when making improvements on pre-existing buildings or structures.

Interested in a FREE QUOTE? Complete our Subdivision Bond Application today!

Current Market for Subdivision Bonds: In the current subdivision bond market, bonding companies throughout the surety bond industry apply a significant amount of scrutiny when determining whether or not to approve an applicant for a bond, and in determining a suitable rate for their given level of risk. Over the years, larger, more established construction companies have been able to obtain these types of contract bonds much easier than have most of the smaller, up and coming contractors, and this is still the case today. Around the industry, subdivision bonds are currently being handled very differently by the many bonding companies out there. While rates may vary significantly, there can also be a very thin line between being approved for the bond and being left out to dry. Therefore, it is imperative that customers in need of a subdivision bond shop around to find an agent capable of pairing them up with the right bonding company.

About Our Programs: Fortunately, subdivision bonds are one of our specialties, due in large part to our connections with some of the best bonding companies in dealing with this type of contract bond. Whether you’re representing a sizable, reputable development company, or a smaller, less experienced developer, we are confident that our agency can help meet your company’s bonding needs. Our business relationships provide our agency with a unique ability to help smaller, more risky developers become bonded, when other bonding agencies may be unable to do so.

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    Get your free performance and payment bond quote now by completing the form below. Don't like to fill out forms? Call 949-258-9800 to talk with a live bond specialist now.



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