Untitled%2520design_edited_edited.jpg

Subdivision Bonds

WHAT IS A SUBDIVISION BOND?

A Subdivision bond also referred to as a Developer Bond, Site Improvement Bond, Land Improvement Bond, Completion Bond, Plat Bond, or simply Performance Bond, are a type of surety bond that provides a guarantee to a state, city or county that the principal will complete all public improvements required in the agree upon contract.

 

HOW MUCH IS A SUBDIVISION BOND?

The cost of a Subdivision Bond bond will vary from less than 1% to over 3% of the full agreed upon contract amount. The cost is very much dependent on the level of assurance the principal can provide. Factors that are considered include the bond amount, credit, andquality of financial statements. States have varying requirements. Please fill out our contact form to start the process to work with a surety bond specialist. 

WHAT IS REQUIRED TO APPLY FOR A SUBDIVISION BOND?

  • Subdivider’s Questionnaire

  • Subdivider’s Bond Information Sheet

  • Last Fiscal Year-End Financial Statements, including Profit & Loss Statements as prepared by an outside accountant or CPA. Please provide the current Interim Financial Statement, if available.

  • Current Aging Accounts Receivable Schedule and Accounts Payable Schedule

  • Personal Financial Statements on all Owners, Major Stockholders, Partners, and/or Indemnitors Agreement, LLC Agreement

  • Copy of Entity Documents, i.e., Articles of Incorporation, Partnership Agreement, Joint Venture

  • Provide Resumes of Key Personnel including Owners/Principals and/or Company Brochure

  • Set-Aside letter from Construction Lender

  • Subdivision Agreements(s)

  • Required Bond Forms

  • City or County Engineer’s estimate of costs to complete off-site improvements

  • Map showing the location of the subject property

  • General Indemnity Agreement signed and notarized by all owners and spouses

  • Copy of certificate of insurance

 
Contact_Us_edited.jpg

CONTACT US

NIELSON HOOVER AND COMPANY

 220 CONGRESS PARK DRIVE, SUITE 100 DELRAY BEACH, FLORIDA 334455

TEL: 561-676-2322

Construction Bonds 101 Copyright 2020