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What is an Improvement Bond
Improvement bonds, also known as subdivision bonds, are required from developers or home builders, and are used to guarantee the completion of mandatory improvements to public buildings or entities that are used by the local community regularly. These bonds are seen as means of protection for a specific city, county, or state. With an improvement bond, the principal of the public construction project is promising to complete mandatory improvements to public entities because such improvements are for the greater good of the community. A public construction project that may need an improvement bond includes maintenance of streets, sidewalks, draining systems, gutters, sewers, public buildings etc.
Whether you need a improvement bond or any other type of performance bond, we can help. Let us do the worrying for you; let us do the hard work so that all you have to worry about is your business. We know that getting these bonds is crucial for your business to grow, which is why we have specialty programs to help each individual client get the specific bond they need. When other sureties tell you know, The Surety Place says YES!
Improvement Bond FAQs
When is an improvement bond be needed?An improvement bond must be obtained by developers or home builders for a county or local municipality before a lot map is filed or a building permit is obtained. When a contractor bids on a public project, an improvement bond is usually required. If you have questions regarding any type of improvement or subdivision bonds call The Surety Place today.
Does a construction loan need to be in place?One important question the surety will ask is whether or not the principal obtaining the improvement bond is financing the development. If they are, the construction loan needs to be in place prior to the underwriting of the bond and the surety will most likely want letter of proof from the bank financing the loan. These letters are known as, "set aside," letters.
What are the requirements for improvement Bonds?Similar to all other bonds, in order to get an improvement bond underwritten, your personal credit will play a significant role. The surety will also want to ensure that the principal has the financial resources to complete the work they are agreeing to in the initial project contract. Usually, the underwriter will need proof of 1.5X the amount of the bond in liquid assets by the principal. Also, your bond history can effect your ability to obtain a new bond or the premium you pay for the bond itself.
What kind of bond is an improvement bond?An improvement bond, also known as a subdivision bond is type of performance bond. This bond can also be known as a payment bond, offsite improvement bond, street improvement bond, or subdivision improvement bond. Although the names vary, the bond itself is relatively the same across the board and is seen as an agreement between the developer of the project and the municipality requesting that improvements be made on a public property.
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Why Choose The Surety Place for Improvement Bonds
The Surety Place was Founded in 2002 and since the beginning we have been industry leaders because we set out each day with one goal in mind, to bring innovation and a high level of service the surety bond industry needs. We are a people first company that you can trust, offering access to agents, specialty programs, and businesses to achieve the right solution at the right time, every time. Whatever your bond needs are, from improvement bonds to any other contract, payment, or performance bond, we are your bond solution company.
A People First Company
What sets us apart from other sureties is that we establish a relationship with you in order to truly understand your business focus and bond needs in order to help your company grow and succeed. We also set out standards high when it comes to our team, which means you get an entire surety company of trained and knowledgable individuals who know exactly what your business needs and the bonds that are required of you in order to grow. As small business owners ourselves, we know how hard it can be to get started and grow your business. We are here to help alleviate some of those stresses by getting you the subdivision bond needed to bid on larger projects. Your needs as a business owner will be heard, and solutions will be found and implemented in a timely manner. We have the ability to underwrite any bond in any state.
As one of the only true specialists in the industry we supply access, partnerships, and specialty programs with numerous “A” rated sureties across the nation. The Surety Place is here to help you service all of your customs bond needs with no appointments or contracts necessary, yet another thing that sets us apart as one of the leading sureties in the industry. Our industry knowledge and expertise coupled with our ever increasing list of specialty programs, give us the unique ability to write your bonds when no one else can. When you put your trust into our team of experts, you and your business will never be disappointed. When you choose The Surety Place you are choosing the best.