Whether for public or private projects, contract bonds are often a required element of the construction contract. They provide a layer of security, ensuring that the contractor fulfills their obligations under the contract's terms. This includes completing the project according to the specifications and managing financial responsibilities effectively.
Beyond traditional contract bonds like bid bonds, payment, and performance bonds, bonds for projects involving land development and subdivisions also play a crucial role for contractors.
Contractors are required by certain local governments to get a subdivision or municipality bond when starting a project building a subdivision. Subdivision developer bonds are a type of performance bond that guarantees you will finish all your work within the given time frame outlined in your contract. If you don't complete your improvements on time, the developer surety bond covers costs and losses for the municipality.
Subdivision bonds & municipality bonds are a group of surety bonds that include site improvement bonds, land improvement bonds, plat bonds, completion bonds, or traditional performance bonds.
The key difference between subdivision bonds from regular contract performance bonds is that the owner/developer (the principal) must pay the cost of building the bonded improvements rather than the public agency (the obligee).
Ensure your projects stand on solid ground by securing your contract bond with BOSS Bonds. Our deep understanding of the industry simplifies the bond procurement process for you, project after project. With BOSS Bonds, you gain an advantage that translates into a hassle-free, efficient experience every time. Contact us today!
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