A site improvement plan lays out infrastructure enhancements of an existing subdivision or commercial development, which can include updating items such as access, utilities, sewers, gutters, drainage, curbs, streets, landscaping, and fencing.
Before a permit can be issued for construction, a contractor may first need to obtain a site improvement surety bond. The bond guarantees that a contractor will make all the proper improvements as agreed upon.
Instead of a bond, other securities may be provided in including a certificate of deposit, cash, certified cashier's check, money order, or an irrevocable letter of credit.
A site improvement surety bond is sometimes referred to as a subdivision bond or a plat bond. But while a subdivision bond is for new construction, a site improvement bond is for improvements or upgrades to existing infrastructures.
Site improvements are different from typical construction projects in that with a typical project with a public entity like a city, the city pays for the construction costs. With a site improvement, the owner pays for the costs of the improvements.
The surety bond may detail the estimate of expenses, state what improvements are to be made, and give a date of completion.
Because a contractor must go through a pre-approved process with an underwriter to obtain a bond, an obligee is assured that the contractor has the resources to complete the project.
Information the underwriter needs can include:
A site improvement bond is for existing structures and sites, while a subdivision bond is for new construction.
The premium you pay depends on factors such as the bond amount plus business and personal financials. Contact our Surety Bond Specialists for a free quote based on your specific project.
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
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