Subdivision Development Bonds
Subdivision Development Construction
Performance Surety Bonds Information
A subdivision development bond guarantees that builders, developers and individual landowners complete improvements and construction projects made to a subdivision property. This bond, required by local authorities, usually guarantees that the improvements will be made at the expense of the developer and principal of the bond.
A subdivision development performance surety bond is a guarantee to a city, county or state that a developer ("the 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 include:
Streets, sidewalks, curbs, gutters, sewers and drainage systems
Subdivision development performance 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 Development
Performance Surety Bonds Required?
Subdivision development bonds must be posted by a developer or home builder for a local municipality or county at the time they want to file a lot map or obtain a building permit.
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The 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 development 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 White Lion Surety Bonding Programs:
Subdivision bonds are one of our specialties. We have built deep relationships with some of the best bonding companies that provide all types of subdivison development performance surety bonds.
Personalized Subdivision Development Bond Process
Whether you are a sizable, reputable subdivison developer or a smaller, less experienced developer, we are confident that White Lion Bonding can help meet your companys bonding needs.
Our surety bonding business relationships give us the unique ability to help smaller, more risky developers become bonded, when other bonding agencies may be unable to do so.
Subdivision development bonds are a written agreement under which one party, called the surety, obligates itself to a second party, called the obligee, to answer for the default of a third party, called the principal. Suretyship is an obligation to pay the debts of, or answer for, the default of another. In the form of bid, performance, and payment bonds contract suretyship provides specific benefits to project owners, contractors, laborers, subcontractors, and suppliers. Most surety contract bonds are written on public works construction projects, which includes federal, state and local projects.
Subdivision development bonds are used to guarantee that a contractor will abide by the specifications of a construction contract. A Contractor surety bonds assure a project owner that a contractor will perform the work and pay specified subcontractors, laborers, and material suppliers.
Construction contrators can benefit greatly from a prequalified corporate surety. Even if a public entity will accept alternate security for the bid process, the contractor awarded the job is almost always required to post performance and payment bonds from a corporate surety. Surety credit often enhances a contractor's competitive position in private work because the contractor can offer project owners and lenders the assurance that its capacity to perform has been carefully reviewed.
The main types of Subdivision development bonds are:
Bid Bonds, Performance Bonds and Payment Bonds
Bid Bonds provide financial assurance that the contractor submitting a bid, if awarded the construction contract, will enter into a formal contract with the owner and will post performance and payment bonds. Most public works, and many private ones, will require bid bonds on the date of the bid.
Performance bonds guarantee that the contractor will fulfill all terms and conditions of the construction contract.
Payment bonds guarantee that the contractor will pay labor and material bills associated with the contract. Laborers, subcontractors, and suppliers receive financial assurance with a payment bond.
Performance Bonds and Payment Bonds (aka Final Bonds) typically need to be issued within 10 days of the award date or prior to any contract payment.
Usually included together performance and payment bonds are two separate bonds required for both public and private construction projects as well as subdivision development projects. Performance and payment bonds are sometimes referred to as a P&P Bond.
Contractor performance bonds are surety bonds issued by a bonding company or bank to guarantee satisfactory completion of a project by a contractor or a subcontractor. Performance bonds safeguard the owner, contractor and the people associated with a construction project, protecting the owner in case the contractor fails to perform and complete the contractual obligations. Payment bonds are a guarantee that the contractor will pay all laborers, material suppliers and contractors per contractual obligations.
A surety bond provided by White Lion Bonding & Insurance Services is designed to guarantee a principal’s integrity, honesty, performance, and financial responsibility, as well as maintain compliance with a law or contract.
We specialize in maximizing the bonding capacity for contractors regardless of their trade or specialty and despite how big or small their bond needs might be.
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GET THE RIGHT BID, PERFORMANCE, PAYMENT AND OTHER SURETY BONDS FOR YOUR SUBDIVISION DEVELOPMENT
CONSTRUCTION PROJECTS
Construction Surety Bonds For Contractors, Subcontractors and Subdivision Developers
Construction Contractor Bonds | Construction Surety Bonds |
Subcontractor Bonds | Subdivision Developer Bonds