- November 8, 2016
- Posted by: Surety Bond Experts
- Category: Subdivision Contract Bonds, Surety Bonds
A subdivision contract bond must be purchased by landowners, developers or builders when upgrades or changes are required by the local government. It guarantees that workers perform their responsibilities specified in the bond.
The bond is usually required by township or municipalities. It makes sure that a principal involved in the construction of a subdivision will finance and guarantees that a developer will put in agreed-upon improvements like water or sewer lines, street lights, and sidewalks. The surety bond producer will fulfill the obligation by either reimbursing the township or municipality or by hiring another business to finish the job satisfactorily if the developer files for bankruptcy. If a contractor is not able to perform a task on the given date or breaks the terms and conditions of the bond, those harmed can file a claim.
A subdivision contract bond must be purchased by landowners, developers or builders when upgrades or changes are required by the local government (i.e. sewage, sidewalks and lights). It ensures that the principal will finance and guarantee that a developer will put in the agreed-upon improvements.
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